WHAT IS A PORTFOLIO? YOUR PORTFOLIO StocksBonds Mutual Funds
Money Markets Savings Accounts The collection of investments you
personally hold. Ownership in a company A special type of loan
Single investment mixing stocks/bonds Highly-liquid investments
Used for saving
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WHAT IS DIVERSIFICATION? Diversification is owning a collection
of investments in order to spread risk and have a safer investment
overall.
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WHAT IS DIVERSIFICATION? Diversification is owning a collection
of investments in order to spread risk and have a safer investment
overall.
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TYPES OF MARKETS Bear Market = slow market Bonds and money
markets do well. Bull Market = growing market Stocks do well.
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HOW DO I DIVERSIFY? 1.Know your own style How much do you know
about investing? Do you like to take risks? 2.Research What
investment options are available to you? 3.Figure out your time
horizon How long do you have to invest before you need your money?
4.Practice Use Wall Street Survivor and the Virtual Business Sims
before its your own hard-earned money on the line!
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STEP 1 KNOW YOUR STYLE How much do you know about investing?
Beginner, Intermediate or Advanced? Do you like to take risks? Take
the investment risk tolerance quiz.
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STEP 2 - RESEARCH Large Cap $5 billion or more Mid Cap $1
billion to $5 billion Small Cap Small Cap $1 billion or less Less
Risk More Risk
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STEP 3 TIME HORIZON Long Horizon 10+ years Intermediate Horizon
1-9 years Short Horizon
