Strategy Beginner: Long-Term Investing

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1.
A disadvantage of many long-term investments is that they are not liquid.
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True. There is a risk of loss for many long-term investments if they are liquidated.
2.
The more an investments price changes, _______.
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The higher its volatility. Price changes and volatility are often found together in certain investments.
3.
Dividends are _______.
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Shared company profits. Dividends are investors cuts of company profits.
4.
Which of the following is not generally a goal of long-term investing?
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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.
Bonds with short maturities are effective investments for long-term investors.
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False. Bonds with long maturities are effective investments for long-term investors.