35 Investing Terms: The Key Words Beginners Need to Know First
Learning and understanding investing terms can seem a bit confusing or daunting at first.
Yet, just like anything else, reading and seeing these terms over and over quickly can lead to you knowing exactly what they mean.
This is the entity that lets you buy and sell investments for you. Usually, you pay a fee for this service.
Broker:
Brokerage Account:
is created by a licensed brokerage firm, that allows an investor to add funds and then the investor can place investment orders.
Investing Account Terms
Types of Investments Terms
A bond is a fixed income investment in which an investor loans money typically corporate or governmental which borrows the funds for a defined period of time at a variable or fixed interest rate.
Bond:
Stocks:
is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.
A mutual fund is a pooled portfolio. The fund itself holds the individual stocks, in the case of equity funds, or bonds, in the case of bond funds
Investment Structures Terms
Mutual Fund:
Index Fund:
is a mutual fund, that allows an individual to “invest” in an index, such as the S&P 500. Index funds are very similar to how mutual funds work, but typically have very low fees and are the better choice.
Other miscellaneous investing terms
Bear Market:
is a period where stock prices are falling.
Bull Market:
A bull market when the market is moving in a positive direction and is expected to continue.
There are certainly a lot more investing terminology to understand, but these will start you off successfully and help you begin to understand the world of investments better. I recommend you start off with the above, then slowly expand your investing term knowledge as you feel comfortable.
Final Thoughts
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