Drag the tiles to the correct boxes to complete the pairs.

Match each activity that generates portfolio income to the context in which it is generated.

1. trading paper assets - It involves buying and selling of stocks, bonds, mutual funds, derivatives, and currencies.
2. stocks - It represents ownership in a corporation.
3. mutual funds - It is a financial investment that pools money from investors to invest in securities.
4. derivative - It is a contract whose value derives from other financial assets.

Question

11-07-2024
Business

Answered

Drag the tiles to the correct boxes to complete the pairs.

Match each activity that generates portfolio income to the context in which it is generated.

1. trading paper assets - It involves buying and selling of stocks, bonds, mutual funds, derivatives, and currencies.
2. stocks - It represents ownership in a corporation.
3. mutual funds - It is a financial investment that pools money from investors to invest in securities.
4. derivative - It is a contract whose value derives from other financial assets.

Answer :

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Final answer:

Trading paper assets involves buying and selling various financial instruments, while stocks represent ownership in a corporation. Mutual funds pool money from investors to invest in securities.

Explanation:

Trading paper assets: involves buying and selling of stocks, bonds, mutual funds, derivatives, and currencies. When trading these paper assets, individuals engage in the financial markets to earn income.

Stocks: represent ownership in a corporation. Investors who own stocks receive dividends and may experience capital gains or losses.

Mutual funds: are financial investments that pool money from investors to invest in securities. They offer a diversified collection of stocks, reducing individual risk.

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