Petrina was told by a successful friend to invest in stocks and income-producing real estate.Both of these are examples of ________ investments.

Question

Quizplus · Accepted Answer

Stocks and real estate are examples of ownership investments, where the investor owns a piece of the asset and can potentially earn profits through appreciation or cash flow. Lending investments, such as bonds or certificates of deposit, involve loaning money to another party with the expectation of earning interest, while risk-free investments, such as government securities or FDIC-insured savings accounts, offer little to no risk but typically low returns. Short-term investments are those that mature in one year or less, while liquid investments can easily be bought or sold without significant price fluctuation.

Petrina Was Told by a Successful Friend to Invest in Stocks