Financial Investments and Broker Comparison Quiz

Government bonds are backed by the government, making them relatively low-risk.

ROI measures the profitability of an investment relative to its cost.

Bonds are generally considered low-risk investments with fixed interest payments.

Brokerage accounts facilitate the purchase and sale of various financial assets.

401(k) accounts provide tax benefits for retirement savings in the U.S.

Derivatives derive their value from underlying assets and can be highly volatile.

Financial brokers offer guidance and execution services for investments.

ROI measures the gain or loss generated relative to the initial investment.

Bonds pay periodic interest payments until their maturity date.

ETFs are investment funds traded on stock exchanges, representing a basket of assets.

ROE measures how efficiently a company generates profits from shareholders' equity.

Diversification reduces risk by investing in various asset classes.

P/E ratio compares a company's stock price to its earnings per share, indicating valuation.

Stop-loss orders automatically sell an asset when it reaches a predetermined price, limiting potential losses.

Federal Reserve interest rate decisions influence borrowing costs and economic conditions, affecting stock market performance.