Dave Ramsey Investments Flashcard

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What are mutual funds?

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Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

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What is a Bull Market?

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A Bull Market refers to a financial market condition where prices are rising or are expected to rise, typically associated with investor confidence.

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What is inflation?

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Inflation is the general rise in prices of goods and services in an economy over a period of time.

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What is investing?

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Investing is a long-term approach to allocating resources, usually money, with the expectation of generating an income or profit.

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What is a dividend?

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A dividend is a distribution of a portion of a company's earnings to its shareholders, decided by the board of directors.

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What are stocks?

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Stocks are shares of ownership in a company, representing a claim on part of the company’s assets and earnings.

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What are bonds?

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Bonds are fixed income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental.

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What is a Bear Market?

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A Bear Market is a market condition characterized by declining prices, often associated with widespread pessimism.

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What is a T-bill?

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A T-bill, or Treasury bill, is a short-term government security with a maturity of one year or less, sold at a discount to face value.

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What is the difference between stocks and bonds?

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Stocks represent ownership in a company, while bonds are loans made to a company or government that must be repaid with interest.