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Safety-First Rule

Safety-First Rule Definition

Safety-First Rule refers to the creation of a portfolio based on minimum level of returns.  This way, investors can lessen the risk of not reaching their investment goal.


Additional meaning of Safety-First Rule:

The safety-first rule is part of the margin of safety theory, in which investors only buy securities when the market price is considerably lower than its real value.  This difference allows investments to be made with little risk.









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