What type of investment provides ownership in a corporation?

Which type of investment is typically considered safer than stocks but offers lower potential returns?

What is the key benefit of a diversified investment portfolio?

Dividends are payments made to shareholders from a corporation’s earnings.

Bonds typically offer higher potential returns than stocks.

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Arrange these types of investments from lowest to highest potential risk: Bonds, Real Estate, Stocks. (put the lowest risk at the top)

Rank these investment income types from least to most taxable: Municipal Bond Interest, Qualified Dividends, Short-Term Capital Gains. (put the least taxable at the top)

How does understanding the relationship between risk and return help you make better investment decisions?