Even though a Certificate of Deposit (CD) earns more interest than a savings account there is a drawback - a penalty for an early withdrawal. Answer 1 The higher the APY the better the investment. Answer 2 A company that sells stocks is required to pay back the money stock holders. Answer 3 Selling stock always results in a profit. Answer 4 Companies general offer a dividend if they have more cash than they need to reinvest in their own operations. Answer 5 If you invest in a mutual fund, then you are responsible to manage the various investments. Answer 6 When a bond matures, the purchaser receives at least the principle from the issuer. Answer 7 The annual net income from a real estate investment needs to take into account expenses such as mortgage interest, taxes, repairs, and insurance. Answer 8 Money invested in a traditional IRA is taxed when withdrawn. Answer 9 A Roth IRA has a mandatory withdrawal date