Investment Lingo 2 Flashcards
(21 cards)
Capital gain/loss can help you
Determine your rate of return on an investment
Capital gains usually subject to
Taxes
Capital losses reduce
Your tax burden
Cash (investing)
Any money stored in bank account or short-term investments
“Cash” considered
A safe investment
“Cash” is an important part of
A diversified portfolio
Certified Financial Planner (CFP)
Gold standard financial advisor, provides comprehensive financial services
Diversification
Spreading funds in investment portfolio across many assets
Diversification reduces
Risk
Dividends often distributed on a _ basis
Quarterly
Not all companies issue
Dividends
Investors who receive dividends can
Reinvest instead of pocketing
Dollar-cost average is the process of
Making equal investments at regular intervals long period of time
Dollar-cost average is the opposite of
Timing the market
Dollar-cost method opposite of timing the market because
Maintain steady no matter what market is doing
Dollar-cost average is considered
One of the best ways to gain wealth over time
EBITA Stands for
Earnings before interest, taxes, and amortization
EBITA is a term used to describe
The profitability of an investment, especially when compared to others in your portfolio
EBITA is often thought to give more accurate picture of
How profitable a company is
Emergency fund
Money you have set aside for emergency purposes
Emergency fund recommended for _ or _ months
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