a. Stocks make you a part owner of a company, and bonds make you a part lender to a company
b. Stocks have better returns
Risk
a. High risk is correlated to high reward
b. Diversify your portfolio by investing in multiple different places
Balance
a. A good balance between percentage of stocks and bonds
b. Buying and selling stocks and bonds to return to the ideal percentages
Core Competency Self Assessment
I used the information our teacher gave us during the class to help me answer the questions.
Investing definitely has become a more approachable concept to me, mainly because I understand how it works a bit better now.
Learning about how badly credit cards trap you in debt by allowing you to only pay the minimum payment is quite enlightening, and I’m definitely going to be cautious about that when I get a credit card of my own.
