Financial literacy: Stocks and Mutual funds

A market sector is a way.to methodically classify stocks based on their type of business. Ther are 11 recognized sectors which are further differentiated as_______.

Cyclical and defensive

Stock mutual funds can be further differentiated by investing strictly in ______.

Growth stocks

Defensive investing is beneficial to your investment portfolios performance because _______.

Investing in these stocks prevents price volatility that may impact your portfolio

money market mutual fund have a low risk level and can only invest in high quality investments issued by ________.

The Federal, state, and city government

True or False Preferred stock holders are paid divideds prior to common stock holders.

True

A mutual fund is not guaranteed or insured by the FDIC (Federal Deposit Insurance Corporation) which means _______.

You could lose money if the fund or their investments goes bankrupt