111 Investing Terms For Beginners

Key Points

• Technical analysis studies price behavior

• Charts show market psychology

• Indicators support decision-making

• Risk control matters more than accuracy

• Discipline beats prediction

Stocks & Equities

Stock ownership share of a company that can rise or fall in value.

Equity ownership interest in a business.

Share one unit of stock ownership.

Common Stock equity with voting rights and variable dividends.

Preferred Stock equity with fixed dividends and no voting power.

IPO first public sale of company shares.

Market Capitalization company size based on total share value.

Blue-Chip Stock large, stable company with long history.

Growth Stock company focused on expansion over profits.

Value Stock stock priced below perceived worth.

Dividend Stock stock that pays regular income.

Earnings company profits.

EPS earnings per share.

P/E Ratio price compared to earnings.

Book Value company asset value minus liabilities.

Free Cash Flow cash left after expenses.

Float shares available for public trading.

Dilution increase in shares reducing ownership percentage.

Bonds And Fixed Income

Bond loan given to issuer with interest.

Government Bond bond issued by a country.

Corporate Bond bond issued by a company.

Municipal Bond bond issued by cities or states.

Coupon Rate interest paid by bond.

Yield income earned from bond.

Yield to Maturity total bond return if held to end.

Maturity Date date when bond is repaid.

Credit Rating issuer risk level.

Default Risk chance issuer cannot repay.

Interest Rate Risk bond price sensitivity to rates.

Funds And ETFs

ETF basket of assets traded like a stock.

Index Fund fund tracking market index.

Mutual Fund pooled investment managed actively.

Active Fund fund trying to beat the market.

Passive Fund fund following an index.

Expense Ratio annual fund cost.

NAV value per fund share.

Tracking Error difference between fund and index.

Sector Fund fund focused on one industry.

Thematic Fund fund based on trend or idea.

Fund Manager person managing investments.

Portfolio Management

Portfolio collection of investments.

Asset Allocation division between asset types.

Diversification spreading risk across assets.

Rebalancing adjusting portfolio back to target.

Concentration Risk too much exposure to one asset.

Risk Tolerance ability to handle losses.

Time Horizon length of investment period.

Drawdown drop from portfolio peak.

Correlation how assets move together.

Risk And Performance

Risk chance of losing money.

Volatility speed and size of price changes.

Beta movement compared to market.

Sharpe Ratio return compared to risk.

Alpha performance above benchmark.

Benchmark standard used for comparison.

Total Return growth plus income.

Real Return return after inflation.

Behavior And Strategy

Buy and Hold long-term investing strategy.

Dollar-Cost Averaging investing equal amounts regularly.

Lump Sum Investing investing all money at once.

Market Timing trying to predict price moves.

FOMO fear of missing out on gains.

Panic Selling selling due to fear.

Discipline sticking to plan under pressure.

Emotional Investing decisions driven by feelings.

Cryptocurrency

Cryptocurrency digital asset without central authority.

Bitcoin first decentralized cryptocurrency.

Altcoin any crypto except Bitcoin.

Stablecoin crypto pegged to fiat value.

Token digital asset on blockchain.

Coin native blockchain currency.

Wallet crypto storage tool.

Private Key secret proof of ownership.

Public Key address used to receive crypto.

Gas Fee transaction cost on blockchain.

Blockchain And Web3

Blockchain shared digital ledger.

Mining validating transactions with computing power.

Staking locking tokens to secure network.

Smart Contract self-executing blockchain code.

DeFi decentralized financial services.

Liquidity Pool funds locked for trading.

Yield Farming earning rewards via DeFi.

DAO community-run organization.

NFT unique digital asset.

Trading And Platforms

Broker service executing trades.

Exchange marketplace for assets.

Market Order trade at current price.

Limit Order trade at set price.

Stop Loss automatic sell to limit losses.

Liquidity ease of selling assets.

Bid Price highest buyer offer.

Ask Price lowest seller price.

Spread difference between bid and ask.

Costs And Taxes

Fee cost paid for investing.

Commission fee per trade.

Expense Ratio yearly fund fee.

Capital Gain profit from selling asset.

Capital Loss loss from selling asset.

Tax Efficiency minimizing tax impact.

Withholding Tax tax taken before payout.

Technical Analysis

Technical Analysis study of price charts to predict future movement.

Price Action analysis based only on price movement.

Chart visual display of price over time.

Timeframe selected time period for a chart.

Candlestick chart style showing open, high, low, and close.

Bullish Candle candle showing price increase.

Bearish Candle candle showing price decrease.

Doji candle showing market indecision.

Hammer candle suggesting possible price reversal.

Engulfing Pattern pattern showing strong buying or selling pressure.

Market Cycle repeating phases of growth and decline.

That's All For Now

Now the list of 111 investing terms for beginners is complete.

I'll do my best to update this list occasionally.

Keep in touch.

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