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
60% of people are intimidated by investing.
If this is you, understanding these 50 terms will change that:
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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
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
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
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
19. Lump-sum – a single investment made one time
21. Brokerage – the intermediary you use to buy and sell stocks
22. Robo-Advisor – an algorithm that invests for you/financially guides you
24. Short-term Investing – investing for less than 10 years
25. Time horizon – how long you can stay invested
27. Volatility – the ups and downs of the market
28. Diversification – owning multiple types of investments
29. Asset allocation – owning multiple types of assets
31. Short-term capital gains/loss – when you realize a profit/loss before 1 year
32. Compound interest – when the money you make starts making you more money
34. Roth IRA – a retirement account you can withdraw tax-free from
35. Traditional IRA – a retirement account you can contribute pre-tax money to
36. HSA – an investment account earmarked for health expenses
38. Target Date fund – a fund that adjusts to your age
39. Bull market – when stocks go up over time without falling 20% from their last peak
40. Bear market – when a market falls 20% from its peak
42. Inflation – when things get more expensive
43. Portfolio – your collection of investments
44. Return – what % your money grows when invested
46. Blue chip – a company considered to be reliable investments
47. Penny stock – a stock you can buy for less than $5
49. Margin – a loan from your brokerage to invest
50. Market price – the price of an investment on the open market
I tweet about money, so you can improve your relationship with it.
https://t.co/Tn59MorjmI
60% of people are intimidated by investing.
— Maykel | Yes To Riches (@YesToRiches) August 20, 2022
If this is you, understanding these 50 terms will change that:
(Bookmark this)
