Investment

High school (ages 12+)
Mathematics & Numbers

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/investment

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the definition of investment?The commitment of resources with the expectation of generating future value
2. What is the primary objective?To achieve a positive return on invested capital
3. Why do people invest instead of just spending their money?Investing helps grow money over time, so you can buy big things later, like a house or a car, and it also keeps your money from losing value because of inflation.
4. How can investment make money grow?When you invest, you can earn a profit called a return. This can come from the price of an asset going up, or from regular income like dividends, interest, or rent.

Capital Appreciation: An increase in the market value of an asset over time.
Cash Flow: The net amount of money transferred into and out of a business or investment.
Diversification: Spreading investments across different asset types to reduce overall risk.