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1.
A disadvantage of many long-term investments is that they are not liquid.
True. There is a risk of loss for many long-term investments if they are liquidated.
2.
Growth stocks come from companies whose earnings are expected to _______.
Grow faster than the market average. The stock of companies with high earnings are valued highly in the marketplace, and thus grow greatly in value.
3.
Tax-deferred investment accounts usually come with early withdrawal penalties.
True. Early withdrawal penalties are meant to keep money in investments for long periods.
4.
Which of the following is not generally a goal of long-term investing?
Current income. Receiving current income is not generally a goal of long-term investing. Long-term investors understand that they will have to put off income for months or years.
5.
Long-term investors can invest in tax shelters to reduce taxes.
True. The savings investors get from tax-deferral expand the growth of their long-term investments.