60% of people are intimidated by investing.
If this is you, understanding these 50 terms will change that:
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1. Stock/Share – a piece of ownership in a company
2. Stock market – where people go to exchange stocks
3. Bond – a loan to the government or a company
4. Real Estate – private property like land or buildings
5. REIT – a company you can invest in that owns real estate
6. Asset class – a group of investments with similar traits
7. Index – a list of stocks
8. Index fund – a fund that tracks a list of stocks and trades once/day in the stock market
9. ETF – a fund that tracks a list of stocks but trades all day in the stock market
10. S&P 500 – an index (list) of the top 500 companies in the US
11. Market cap – the total value of a company
12. Large-cap – a company worth more than $10B
13. Mid Cap – a company worth $3B - $10B
14. Small Cap – a company worth $250M - $3B
15. Active management – when a fund is managed by pro investors
16. Hedge fund – a partnership between private investors that invests using risky strategies
17. Turnover – the rate at which a stock is bought and sold
20. Expense ratio – the % cost of investing in a fund