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Guidelines for Safe Investing

II. Listening Exercises

1. Listen to the news program again by pressing the Play button and read along with the conversation. Review the Key Vocabulary and the sample sentences.

Hi, I'm George Boros. Have you always wanted to invest, but didn't know where to get started? We're here today to present you with three basic guidelines to smart investing, for your future.

Number one is to have clear goals. Decide how many years you will invest for, and what your needs will be in the future.

Number two is to understand the range of possibilities. You'll want a diversified portfolio: one with a mix of stocks, mutual funds, bonds, and cash. It's a jungle out there. Each of these products has different risks associated with them and also different potential rewards. Understand them before you buy, so there won't be any big surprises later.

Finally, number three is to have realistic expectations. As our friend Leonardo da Vinci said in the year 1500: "He who wishes to be rich in a day will be hanged in a year."

Over the past several years, New York stocks have averaged 30% annual returns, but don't count on this continuing. While it's true that since the year 1900, stocks have averaged an 11% annual return, it's a roller-coaster ride with many minus years as well, so you have to stay in for the long term--you have to weather the storm--and not be too greedy.

Well, let's get started and Happy hunting! For FNN, this is George Boros reporting.

Key Vocabulary [Top]

Here is a list a words from the conversation, a description of how each is used in the conversation, and a sample sentence with the word in it.

  • guidelines (noun): directions, instructions, rules
    - You need to follow these guidelines when writing a business plan.

  • diversified (adj): varied; wide selection
    - Diversified holdings in that company might be the best strategy for long-term investing.

  • portfolio (noun): a collection or grouping
    - I took a portfolio of some of my drawings to the job interview.

  • potential: (adj) possible, likely; (noun) ability, capability
    - There is a lot of potential in making money with stocks if you know how to invest.

  • realistic (adj): practical, reasonable, sensible; also genuine
    - Do you think you have a realistic chance of turning a profit with you company by the end of the year?

  • expectations (noun): hopes
    - Sometimes, our expectations that the stock market will remain strong could result in disappointment.

  • greedy (adj): feeling a very strong desire or craving for something; covetous
    - Some people who are greedy start taking more financial risk in order to make more money.

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