Chapter 11 PMM

It is just as important to look at both the advantages and disadvantages when investing.

Short-term, temporary investments are generally considered less risky because they are more predictable.

Beginning investments should include a strategy for diversification.

Most people invest money to avoid risk and to be completely safe.

Inflation affects investment strategy.

A speculative investment can greatly increase your chance of earning a profit.

Inflation makes fixed-rate investments worth less.

Government actions that affect business profits are called industry risks.

A big advantage of a mutual fund is that it is diversified.

The more risk you are willing to take in investing, the more you stand to gain or lose.

Company or industry risk is associated with risks of corporate securities.

When making investments, speed in making decisions is important.

The Wall Street Journal is a weekly financial magazine.

Although real estate represents a non-liquid investment in cash, it has usually proven to be a protection against inflation.

It is possible to save money by going to a full-service bank where a discount broker can provide all the services of regular brokers for a reduced price.