Of Mice and Mutual Funds Flashcards
Keep it ___, ____
simple, stupid
It does not mean you are stupid if you make _____ investments
simple
NEVER invest for purely ___ ______
tax savings
NEVER invest using _______ money
borrowed
Diversification means to ______ ______
spread around
Diversification _____ risks
lowers
With virtually all investments, as the _____, goes up, so does the potential ______
risk ; return
When discussing investments, liquidity is _____.
availability
As there is more liquidity, there is typically _____ return.
less
A C.D. is a certificate of _____ typically at a bank.
deposit
Money market mutual funds are _____ risk money market accounts with check-writing privileges. These are great for emergency funds.
low
Single stock investing carries and extremely _____ degree of risk.
high
When you buy stock, you have buying a small piece of _____ in the company.
ownership
Your return comes as the company increases in _____ or pays you, its owner, some of the profits (called _____)
value ; dividends
A bond is a _____ instrument by which the company owes _____ money
debt ; you
Your return is the fluctuation in price and the _____ rate paid. _____ individuals do well with single bond purchases.
interest ; Few
Investors pool their _____ to invest.
money
Profession portfolia managers manage the pool or _____ _____
mutual funds
Your _____ comes as the _____ of the fund is increased.
return ; value
Mutual funds are good _____ term investments.
long
SAVING IS FOR 5 YEARS OR ____
less
INVESTING IS FOR 5 YEARS OR ____
more
a group of people bought into something together
Mutual Fund
