Dave Ramsey Investments Flashcard

Front

What are stocks?

Back

Securities that represent part ownership or equity in a corporation.

Front

Why do people need to save and invest?

Back

To enable their money to make money.

Front

What is liquidity in investments?

Back

Liquidity refers to how easily an investment can be converted into cash without affecting its market price.

Front

What does a Bull Market indicate?

Back

A period in which stock prices are rising or are expected to rise.

Front

True or False: Saving and investing have nothing to do with the amount of money you make.

Back

True.

Front

What are bonds?

Back

Debt securities issued by corporations or governments to raise capital, representing a loan made by an investor to the issuer.

Front

What is the relationship between liquidity and return on investment?

Back

The more liquid an investment, the less return it typically offers.

Front

What is a Bear Market?

Back

A market condition where prices are falling or are expected to fall.

Front

What is the primary goal of investing?

Back

To grow wealth over time by earning a return on the invested capital.

Front

What is diversification in investing?

Back

The practice of spreading investments across various financial instruments, industries, and other categories to reduce risk.