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1: What two factors are important to making the principle of compounding work? 2: What evidence indicates that corporate profits will rise? 3: Making Comparisons

1: What two factors are important to making the principle of "compounding" work?

2: What evidence indicates that corporate profits will rise?

3: Making Comparisons If the average historical return on a stock market is 11%, why doesn't everyone put their money into stocks rather than into a savings account?

4: Analyzing Information Agree or disagree with the statement: Stocks are the best long-term investment value. Why?

5: Why is the first rule of investing to only invest money that won't be needed for at least 5 years?

6: Why doesn't the theory of averages work for investing in the Dow Jones Industrial Average or the Standard & Poor's 500-stock Index?

7: Making Comparisons What is the difference between a managed mutual fund and an index mutual fund?

8: Drawing Conclusions Has this article persuaded you to invest your money in individual stocks or mutual funds? Why?

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