Which investing method uses an app to invest small amounts, often by rounding up spare change from purchases?

• A. Micro-Investing
• B. IPO (Initial Public Offering)
• C. Robo-Advisor
• D. Dollar-Cost Averaging

Answer: (A)

Micro-investing uses an app to invest tiny amounts, often by rounding up spare change from everyday purchases and investing the roundup automatically. This approach makes it easy to start with very little money and build an investing habit, since each purchase nudges a small amount into the market without requiring a big upfront investment. The app typically links to your bank or card, rounds each transaction up to the next dollar, and invests the difference, with optional automatic recurring deposits to increase the pace over time. This concept differs from dollar-cost averaging, which involves investing a fixed amount at regular intervals regardless of rounding or purchases; robo-advisors manage your portfolio automatically but aren’t defined by the rounding-up feature; and an IPO refers to a company selling shares to the public for the first time, not a method of micro-investing through app-led rounds.