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Answers - SEC

To Test YourMoney marts$ on Saving and Investing Campaign1. If you buy a company s stock,A. you own a part of the If you buy a company s bond,B. you have lent money to Over the past 70 years, the type ofinvestment that has earned the mostmoney, or the highest rate of return, forinvestors has beenA. you own stock, you own a part ofthe company. There are no guarantees of profits,or even that you will get your original investmentback, but you might make money in two , the price of the stock can rise if thecompany does well and other investors want tobuy the stock. If a stock s price rises from $10 to$12, the $2 increase is called a capital gain orappreciation.

account or reinvest the money you earn on your investments, the money you earn starts to earn money too. Over time, the magic of compounding works, allowing your money to grow with dramatic results. The more time you have to save, the less money you need to save because of compounding. And the longer you wait to start saving, the more you have ...

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