Investing 101
investing
This type of investment is like a 'basket' of portions of many stocks, and is very diversified...
mutual fund
This term means your investments are safer because they are not all in one sector or type...
diversified or diversification
The level of comfort an investor has when making decisions about investing is known as their level of...
risk
Market Capitalization
The value of all outstanding shares of a company.
#shares x market price = Market cap.
This common form of investing represents partial ownership of a company and is traded on an exchange.
stock or share
You can put your money in this low-interest rate investment that is also known as a "time deposit", but I would not recommend it.
CD or Certificate of Deposit
Portfolio
a secure place that holds all of your investments
stock ticker
the abbreviated name of a stock
These required reports come out four times a year and reflect the amount of profit a company has made.
quarterly earnings reports
corporations and municipalities issue these as a way of generating capital for specific projects or goals...
bonds
Bonds have a set interest rate and a set period of time
This very common form of investing is often offered by your employer and is mostly involved in mutual funds.
401(k) or 403(b)
This form of virtual currency is a very risky investment and only exists online, or in the cloud, or, perhaps, in your mind...
cryptocurrency
Ex. Bitcoin, Doge, Ethereum
a market where stocks are traded
exchange
P/E Ratio
EPS divided by current price.
Reflects the true value of a stock
Some investors like to research a stock by examining the numbers. For example, they will look at P/E Ratios, graphs, and market capitalization. This process is...
technical analysis
These are physical products that are traded on the Chicago Mercantile Exchange:
They include: oil, wheat, copper, and pork bellies.
commodities
This is a mutual fund whose value goes up and down with the S&P 500, the Dow, or another stock index...
index fund
the assigned category associated with a certain stock related to what type of business they are in or what product they make
sector
EPS
Earnings Per Share
Some investors prefer learning about the company and they might tour the factory, meet with employees or the CEO. They might also go to stores and talk to the managers about how an item is selling. This is known as...
Fundamental analysis
An investment most related to retirement, these offer an annual payment to you as they continue to increase in value (you hope).
annuity
This number is an indicator of the level of volatility an investment has:
Beta
You should only invest in what you...
know, like, and, understand
52 Week High
The range of prices of a stock over the equivalent of one year