According to the video, what does it mean to invest money?

Redirecting resources from current consumption to create future benefits.

Which of the following best describes what a dividend is?

Profits distributed to shareholders

A capital gain is making a profit, while a capital loss is losing money.

An IOU from a corporation or government, promising a future payout in exchange for a loan.

Grade 6th Grade · Math · 45 min

I can define what it means to invest money.

Professor Dave Explains · 7:26

The Basics of Investing (Stocks, Bonds, Mutual Funds, and Types of Interest)

3 key concepts

1
A stock represents ownership in a public company, while a bond is essentially an IOU issued by a corporation or government.
2
Dividends are profits paid out to stockholders, while capital gains occur when a stockholder sells their stock for more than they originally paid.
3
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal and the accumulated interest.

9 questions · Multiple choice & True/false & Fill in the blank

Quick comprehension check

“Explain what it means to invest money in your own words. Give an example of something someone might invest in.”

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