Strategy Beginner: Long-Term Investing

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1.
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.
2.
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.
3.
Growth stocks come from companies whose earnings are expected to _______.
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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.
4.
Real estate is generally an effective investment for the long term.
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True. Real estate usually, but not always, grows in value over long periods of time.
5.
Dividends are _______.
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Shared company profits. Dividends are investors cuts of company profits.