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| The rising cost of goods and services over time. |
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| Money that is earned from a job. |
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| Money that is NOT earned from a job. |
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| buying something with the expectation that it will make money for you |
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| The quantity of goods and services purchased to meet the material comfort of a person, group, or population. |
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| Ability to maintain standard of living using passive income |
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| Diversifying your investments based on your goals, time horizon, and investment style. |
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| The ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings. In other words, ___________ refers to generating earnings from previous earnings. |
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| The end of the life of a security |
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| The original amount invested, separate from earnings. |
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| The length of time over which an investment is made or held before it is liquidated. ___________ can range from seconds, in the case of a day trader, all the way up to decades for a buy-and-hold investor. There is no "right" _________ - it depends on the investor's individual objectives. |
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| The value of your investment may fluctuate, increasing the risk of losing money over the short term |
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| Active income after it has been taxed |
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| Money that can be used to meet any large, unexpected expense |
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| Amount an employer agrees to contribute towards employees retirement fund which duplicates the same amount employee deposited into account |
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| How quickly an investment can be converted to cash without loss of value |
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| Active income before it has been taxed |
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| Stock in a corporation that is expected to experience rapid growth (usually new companies) |
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| Shares in large well-established corporations with histories of steady sales and profits. |
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| In the original and simplified sense, ________ were things of value, of uniform quality, that were produced in large quantities by many different producers; the items from each different producer are considered equivalent. (basic resources and agricultural products such as iron ore, crude oil, coal, ethanol, sugar, soybeans, aluminium, rice, wheat, gold and silver.) |
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| A non-voting share that pays a fixed dividend. Investors buy preferred stock for its dividend income. |
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| A voting share that does not pay a set dividend; is the primary unit of ownership in a corporation. Holders of common stock are owners of the corporation with certain rights including voting on major issues concerning the corporation. Shareholders as they are known have liability limited to the value of stock they own. |
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| are a special category of low priced, usually $1 or less, stocks often issued by highly speculative companies. They are frequently the focus of stock scams and manipulations. |
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| _________ are government bonds issued by the United States Department of the Treasury through the Bureau of the Public Debt. They are the debt financing instruments of the U.S. Federal government. |
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| Items that are relatively rare in number |
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| professionally managed; uses money from many investors to make investments based on a stated objective |
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| purchaser is lending money to government or company. Borrower promises to repay you in full on a specific date, called the maturity date. Borrower also pays you interest for using your money. |
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| certificates of deposit (CD's) |
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| A certificate issued by a bank to a person depositing money for a specified length of time. |
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| buy and sell stocks and bonds |
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| give advice about investing decisions and strategies |
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| investments that you have to sell to receive any growth that may have incurred. Goal is to buy asset that you believe will increase in value over time. Delayed gratification. Have greater potential to produce bigger gains OR LOSSES than income investments. |
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| provide regular earnings, such as monthly interest, quarterly dividends, rent payments, etc. Goal is steady, mostly predictable earnings. |
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| items you own that can be converted into cash |
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| depositing your money into a financial institution for safekeeping and to earn interest. |
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| refers to relationship among time, money, and rate of interest. A dollar today is worth more than a dollar tomorrow. |
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