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1.
A reasonably intelligent person who studies the tax code from time to time can probably make good decisions about how to shelter investment income from taxes.
False. Even the simplest workplace retirement plan can have tax implications that require expert advice.
2.
In investment strategies, risk in traditional terms is _______.
Good and bad. Risk in traditional terms can mean you fail to make money, or even lose it; but possible returns usually increase with the amount of risk.
3.
Companies that do not pay dividends might be good growth investments.
True. Often, companies do not pay dividends in order to funnel more profits into growth.
4.
If you might need to use your principal soon, which aspect(s) of trading would especially concern you?
Maturity date and minimum investment. Minimum investment determines how much of your principal will be tied up, and the maturity date how long.
5.
Inflation affects _______.
Both the value of investments and interest rates. Inflation affects both, which is why many investors watch it carefully.