Stock Market: Self Assessment

Curricular Response

The difference between a stock and a bond is that when you buy a stock the stock will give you part of ownership to a corporation, while a bond is a loan from you to the corporation. Stocks tend to have the better return because its a higher risk which can have a higher return.

Risk and return are always associated together, the higher the risk the higher the return may be, however the lower the risk is the lower the reward may be. Steps you can take to mitigate risk when investing in the stock market can be diversification with things such as index funds.

The meaning of a well balanced portfolio is to balance the risk and the return. Rebalancing a portfolio is where you sell bonds and buy stocks so it, it’s important because it automatically buys low and sells high.

Core Competency Self Assessment

How much information did you use to help you with your answers above?  Did you use outside sources? I used a reasonable amount of information to answer my questions without having to go too specific where I may had to use outside information.

Has investing become a more approachable or attainable concept to you? Investing has became easier to understand for me now, so yes.

What is something that you have learned which you have changed your mind about? I’ve learned ways how people get in trouble with stuff such as debt and how to avoid it.