Impact Investing
Investing tiny amounts of money, often through an app
What is micro-investing?
A company whose shares anyone can buy on a stock exchange.
What is a public company?
This strategy aims to match a benchmark, not beat it.
What is passive investing?
This strategy invests in companies whose profits and revenues are climbing.
What is growth investing?
This strategy invests the same amount of money on a regular schedule, no matter the price.
What is Dollar-Cost Averaging (DCA)?
Loaning small amounts to people or small businesses who usually can't get a regular loan.
What is microlending?
A company owned by private individuals whose shares aren't sold to the public.
What is a private company?
This strategy aims to outperform the market through regular trading and analysis.
What is active investing?
This strategy buys companies that are selling for less than they're really worth.
What is value investing?
This strategy waits for stock prices to drop before buying.
What is buying the dip?
The three letters that stand for Environmental, Social, and Governance.
What is ESG?
Public investing has more of this, since shares are easy to buy, sell, and turn into cash.
What is liquidity?
Spreading your money across lots of investments to lower risk.
What is diversification?
Growth investing usually means more companies of this size.
What are smaller companies?
DCA is about TIME in the market; buying the dip is about ______.
What is timing the market?
This strategy goes one step beyond ESG, using ethics to decide what to buy or avoid.
What is SRI (Socially Responsible Investing)?
Private investing usually has higher growth potential but also more of this.
What is risk?
Passive investors aren't worried about short-term price swings, they are investing for the ______.
What is long-term?
This strategy usually has higher fees, since it requires constant research and trading.
What is active investing?
DCA often removes this feeling!
What is stress!
This strategy aims for profit AND a positive social or environmental impact.
What is Impact Investing?
This kind of investor funds private companies super early, often before VCs.
What is an angel investor?
Passive investors believe stocks already trade at this "true worth."
What is intrinsic value?
Growth stocks often don't pay these cash payouts to shareholders, since the company reinvests profits to grow faster.
What are dividends?
The hardest part of buying the dip is knowing when to do this.
What is buy?