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24 Cards in this Set
- Front
- Back
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Refers to any form of assets in which funds are allocated with an expectation of a positive return or increasing its value |
Investment |
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Set aside adequate funds for basic needs |
Meeting pre-requisites of investing |
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Goals must be realistic |
Establishing investment goals |
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Refers to the written document describing how you will invest funds |
Adopting an investment plan |
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7 steps in investing |
1. Meeting the pre-requisite of investing 2. Establishing investment goals 3. Adopting investment plan 4. Estimating investment vehicles 5. Selecting suitable investment 6. Constructing diversified portfolio 7. Managing the portfolio |
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Assess the potential return of each investment as well as the risk offered by each vehicle |
Evaluating investment vehicles |
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A range of investment held by a person or organization |
Portfolio |
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Evaluate actual behavior bs estimated behavior |
Managing the portfolio |
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The purchase of goods that are not consumed today but are used in the future to create wealth |
Investment |
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Reasons why people invest |
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The key factor in determining the attractiveness of the investment |
Return |
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Refers to the probability of not being able to attain desired outcome |
Risk |
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Investment can be easily converted to cash |
Liquidity |
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Refers to the ease or difficulty of buying or selling the asset at its market value |
Marketability |
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Refers to selecting and managing of some types of portfolios require little or no special knowledge, facilities, or time commitment |
Investment effort |
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Refers to the amount of money required to buy a particular investment |
Investment size |
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Some investors put their money in investments that they appreciate because of the product does not harm the community |
Ethical and moral appeal |
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It conforms to the established goals of the co, does not have misleading advertisement |
Ethical and moral appeal |
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A discipline dealing with a good and evil and with moral duty |
Ethical |
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Confirming to a standard of right behavior |
Moral |
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Refers to the behavioral of the investor particularly in buying investments that it was not done impulsively |
Psychological aspect of investment |
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An arousing of the mind and spirit to action |
Impulse |
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Having the power of or actually driving or impelling |
Impulsive |
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The process of evaluating an investment for profitability and risk, ultimately has the purpose of measuring how the given is a good fit for a portfolio |
Investment analysis |
