A Fancy Way of Saying You Need to Diversify Your

question 54

Multiple Choice

A fancy way of saying you need to diversify your investments is

• A) A bird in the hand is worth two in the bush.
• B) A stitch in time saves nine.
• C) Birds of a feather flock together.
• D) Don't judge a book by its cover.
• E) Don't put all of your eggs in one basket.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually in the form of cash or additional shares, from its net profits.

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders but reinvested in the business.

Dividend

A segment of a corporation's profits given out to its shareholders, typically as cash or more shares.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and equity at a specific point in time.