SAVINGS AND INVESTING
Last Modified: 2011-11-02
SAVING: Short term, and learns little interest.
INVESTING: Over a longer period of time, no guarantee that it will grow but it can grow fast.
BLUE CHIP: high grade, low risk and long history of good earnings and performance.
GROWTH: bought because of future potential and you can pay little or no dividend.
INCOME: pay high dividends.
CYCLICAL: stock prices are according to economy (automobile, construction, steel)
DEFENSIVE: stable stock prices (health care)
Hold in hopes that your money will grow. (stocks, M.F.)
1.) DIVIDENDS: are what companies pay stockholders
2.) Increases in prices of stocks, your goal is to buy low and sell high.
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