Dave Ramsey - Of Mice and Mutual Funds - Chapter 9 Flashcards Preview

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Flashcards in Dave Ramsey - Of Mice and Mutual Funds - Chapter 9 Deck (20):
1

Keep it _____, _____!

simple, stupid

2

It does not mean that you are stupid if you make _____ investments

simple

3

Never invest purely for _____ _____

tax savings

4

Never invest using _____ money.

borrowed

5

Diversification means to _____ _____.

spread around

6

Diversification _____ risk.

lowers

7

With virtually all investments, as the _____ goes up, so does the potential _____.

risk, return

8

When discussing investments, liquidity is _____.

availability

9

As there is more liquidity, there is typically _____ return.

less

10

A C.D. is a certificate of _____ typically at a bank.

deposit

11

Money market mutual funds are _____ risk money market accounts with check-writing privileges. These are great for emergency funds.

low

12

Single stock investing carries and extremely _____ degree of risk.

high

13

When you buy stock, you have buying a small piece of _____ in the company.

ownership

14

Your return comes as the company increases in _____ or pays you, its owner, some of the profits (called _____)

value, dividends

15

A bond is a _____ instrument by which the company owes _____ money.

debt, you

16

Your return is the fluctuation in price and the _____ rate paid. _____ individuals do well with single bond purchases.

interest, Few

17

Investors pool their _____ to invest.

money

18

Profession portfolia managers manage the pool or _____

fund

19

Your _____ comes as the _____ of the fund is increased.

return, value

20

Mutual funds are good _____ term investments.

Long