Answered

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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.

Sagot :

GinnyAnswer

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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