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31 Cards in this Set
- Front
- Back
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Steps in investing |
MPI EIG AIP EIV SSI CDP MP |
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What is investment in economics? |
Purchase of goods that are not consumed today but are used in the future to create wealth |
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Goals must be realistic |
Establishing investment goals |
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Set aside adequate funds for basic needs |
MEETING THE PREREQUISITES OF INVESTING |
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A discipline dealing with good and evil with moral duty |
ETHICS |
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Refer to any form of assets in which funds are allocated with an expectation of a positive return or incresing its value |
INVESTMENT |
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The key factor in determining the attractiveness of the investment |
RETURN |
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An arousing of the mind and soul to action |
IMPULSE |
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Conforming to a standard of right behavior |
MORAL |
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Refers to the amount of money required to buy a particular investment |
INVESTMENT SIZE |
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Evaluate actual behavior vs estimated behavior |
MANAGING THE PORTFOLIO |
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Receive return in term or form of dividends , interest, rent income, capital gain |
RETURN |
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Assess the potential return of investment alternative as well as the risk offered by each vehicle. |
EVALIATING INVEST VEHICLE |
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Achieve your goal |
SELECTING SUITABLE INVESTMENTS |
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Goals must be realistic |
ESTABLISHING INVESTMEMT GOALS |
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Why do people invest? |
P,B,C,V,R |
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Return is receive return in terms or form of? |
DIVIDENTS INTERESTS RENT INCOME CAPITAL GAIN |
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Refers to the behavior of the investor particularly in buying investments that it was not done impulsively |
PSYCHOLOGICAL ASPECT OF INVESTING |
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Refers to ease or difficulty of buying , selling tge asset at its mkt value |
MARKETABILITY |
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Some investors put their money in investments that they appreciate because of the product does not harm tge community. |
ETHICAL AND MORAL APPEAL |
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Investment can be easily converted to cash |
LIQUIDITY |
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Having the power of or actually driving or impelling |
IMPULSIVE |
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A discipline dealing with good and evil and with moral duty |
ETHICS |
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The process of evaluating an investment for profitability and risk |
INVESTMENT ANALYSIS |
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It conforms to the established goals of the co. Does not have misleading advertisements. |
ETHICAL AND MORAL APPEAL |
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Refers to the probability of not being able to attain desired outcome |
RISK |
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Refers to selecting and managing of some types of portfolio required little or no special knowledge , facilities or time commitment . |
INVESTMENT EFFORT |
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A range of investment held by a person or origin |
CONSTRUCTING A DIVERSIFIED PORTFOLIO |
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Maslows heirarchy of needs |
SELF ACTUALIZATION SELF ESTEEM LOVE AND BELONGINGS SAFETY BASIC NEEDS |
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Goal of adopting an investment plan |
LONG TERM AND SHORT TERM |
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Refers to a written document describing how you will invest funds |
ADOPTING AN INVESTMENT PLAN |
