Investing can be a funny business. Between all the jargon, numbers and analysis that typically go hand in hand with investing, it’s no surprise that many Americans end up confused. For example, a 2015 TIAA-CREF survey found that more than half of investors zero in on short-term performance when evaluating an investment’s returns. (Advisors recommend taking a broader look at long-term performance.) And 53 percent believe that higher risk guarantees higher returns. (Spoiler alert: Nope.) Acting on misconceptions like these can wreak havoc on your portfolio.
So to help clear up the confusion, we’ve got answers to some of the most important investing questions you need to know—from how to pick a stock to what to do when the market suddenly drops. Do you know how to answer these?
Find out below!