Investing Vocab by Emily-Catherine Sidney

Return

25sidneye — 2024-03-23 22:49:52 UTC

The total income an investor gets from his/her investment every year
"After Gamestop got popular it's investors received a lot more on their returns."

Growth investing

25sidneye — 2024-03-23 22:53:21 UTC

An investment style and strategy that is focused on increasing an investor's capital

"I invested in game stop when it was a small company because I knew it would blow up, that's a growth investment."

Income Investing

25sidneye — 2024-03-23 22:56:34 UTC

An investment strategy that is centered on building an investment portfolio specifically structured to generate regular income.

"Income investing is a way to generate a stable, streamlined income."

Security

25sidneye — 2024-03-23 23:02:02 UTC

The ability of people to consistently meet their needs.

"In almost any economy the people with the most money have the most security."

Dividends

25sidneye — 2024-03-23 23:03:55 UTC

A form of income that shareholders of corporations receive for each share of stock that they hold.

"Since Game Stop did so well and I have stock in it I received plentiful dividends."

Capital Appreciation

25sidneye — 2024-03-23 23:05:24 UTC

A rise in an investment's market price.

"After a stock gets extremely popular it's capital appreciates."

Capital presevation

25sidneye — 2024-03-23 23:08:36 UTC

The strategy or objective of safeguarding the initial value of an investment or capital

"I had to buy 52 copies of Kirby's Epic Yarn World from each gameStop in a 10 mile radius for the sake of capital preservation."

Portfolio

25sidneye — 2024-03-23 23:09:58 UTC

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs)

A long-time investor will have a more expansive portfolio than a newbie.

Diversification

25sidneye — 2024-03-25 16:44:43 UTC

The process of shifting an economy away from a single income source toward multiple sources from a growing range of sectors and markets.

"I diversified my investments to reduce my risk."

Asset Allocation

25sidneye — 2024-03-25 16:46:16 UTC

How investors divide their portfolios among different assets that might include equities, fixed-income assets, and cash and its equivalent.

"The broker was shocked to see that all of my assets had been located in gamestop stock."

Volatility

25sidneye — 2024-03-25 16:48:05 UTC

An investment term that describes when a market or security experiences periods of unpredictable, and sometimes sharp, price movements.

"The stock market is extremely volatile right after a new company suddenly becomes popular."

Dollar cost averaging

25sidneye — 2024-03-25 16:49:32 UTC

The practice of investing a fixed dollar amount on a regular basis, regardless of the share price.

"I put in $200 a week to gamestop no matter how much the stock costs."

Bonds

25sidneye — 2024-03-25 16:51:58 UTC

A fixed-income instrument that represents a loan made by an investor to a borrower

"I started my own company and got 4 bonds from Elon Musk himself to pay for my stock in game stop."

Stock

25sidneye — 2024-03-25 17:56:11 UTC

A share in the ownership of a company, including a claim on the company's earnings and assets

"I bought stock in Gamestop so now when they get more popular I make more money."

Mutual Funds

25sidneye — 2024-03-25 17:57:55 UTC

A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt

"My wife and I put together our mutual funds to buy stock in Gamestop."

Par value

25sidneye — 2024-03-25 17:59:30 UTC

The face value of a bond or the value of a stock certificate.

"The par value was much higher than we bought it for."

Maturity

25sidneye — 2024-03-25 18:00:39 UTC

The date on which the life of a transaction or financial instrument ends, after which it must either be renewed or it will cease to exist.

"The maturity on gamestop stock is almost here so I have to renew my ownership on the stock."

Default

25sidneye — 2024-03-25 18:03:24 UTC

The failure to make required interest or principal repayments on a debt.

"I couldn't afford to pay for my college debt so it defaulted."

Equities

25sidneye — 2024-03-25 18:05:02 UTC

Shares issued by a company which represent ownership in the company.

"I have many private equities uptown."

25sidneye — 2024-03-25 18:06:11 UTC

Units of stocks issued by a corporation that represent ownership.

"I have 7 shares in gamestop."

Stock exchange

25sidneye — 2024-03-25 18:07:39 UTC

A market where stock buyers connect with stock sellers.

"Everyone at the stock exchange hates me because I only have stock in gamestop."

Bull market

25sidneye — 2024-03-25 18:09:10 UTC

A period of time when major stock market indexes are generally rising, with market indexes eventually reaching new highs

"America has been in a bull market for the past 40 years as stocks become more and more popular."

Bear market

25sidneye — 2024-03-25 18:10:37 UTC

A prolonged drop in investment prices.

"A bear market is a lose-lose situation, companies and investors lose money."

NAV

25sidneye — 2024-03-25 18:12:21 UTC

Net Asset Value; the company's total assets minus its total liabilities.

"My company has $32,000 in assets but $2,000 in liabilities so it has $30,000 NAV."

Prospects

25sidneye — 2024-03-25 18:13:43 UTC

Stocks or shares that are worth "looking forward to"; shares that start low and have an expectancy to grow.

"Gamestock was once a fine prospect."

Brokers

25sidneye — 2024-03-25 18:14:52 UTC

An individual or firm that acts as an intermediary between an investor and a securities exchange.

"My broker didn't approve of the 200 shares in gamestop I requested."