FREE Starting Investment Questions and Answers

Question 1

You're ready to begin putting together an investing portfolio, but first you must:

Accepted Answer

Learn about investing

Answer

subscribe to a few investment publications

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engage a broker who can also help you with financial planning

Question 2

The majority of people invest in stocks for the following reasons:

Accepted Answer

financial security as a result of investment profits

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the excitement of receiving cash from owning a portion of a firm

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dividends that they can put back into the business

Question 3

Every excellent investment strategy begins with the following:

Accepted Answer

a clear declaration of financial objectives

Answer

a consultation with a Certified Financial Planner

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a desire to earn money in addition to your wage

Question 4

As a new investor, what is one thing you should keep in mind?

Accepted Answer

Start investing with a small amount that you can afford and contribute to your investment regularly.

Answer

Never start investing until all your bills are paid and you are debt free.

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Make sure you have job security before you begin investing.

Question 5

How much of your salary should you put into investments if you want to retire early?

Accepted Answer

as much as 20% of your monthly take-home pay

Answer

up to a quarter of your monthly salary

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as much as 15% of your monthly take-home pay

Question 6

What is one last piece of sound investment advice?

Accepted Answer

If it's clear that a section of your plan isn't functioning, a course correction isn't a bad idea.

Answer

Every three years, have your plan reviewed by a Certified Financial Planner.

Answer

Always keep a portion of your liquid assets aside for short-term investments in the next hot market.

Question 7

What is a decent basic method for investing in equities that seems to make a lot of sense?

Accepted Answer

For the long run, invest aggressively, and for the near term, invest prudently.

Answer

Take wise advise instead of rolling the dice.

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Get in on the cheap and get out as soon as possible with a profit.

Question 8

What exactly is churning?

Accepted Answer

Churning is the act of encouraging many trades that aren't essential.

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Investing in the Forex market is known as churning.

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Churning is a term that refers to the practice of day trading.

Question 9

What word best represents how much today's money will eventually grow to?

Accepted Answer

Future value

Answer

An investment

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Present value

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Principal

Question 10

Banks in some nations offer loans for buying real estate in the United States. What are the primary participants' countries?

Accepted Answer

Taiwan, the U.K., and Canada

Answer

Canada, China, and Russia

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France, Germany, and Holland

Answer

The U.K., Germany, and India