Read this 99 common investment terminology for beginners to expand your vocabulary in finance, investing, stocks, real estate and banking. In investing, sometimes you need to know different investment terms used by many financial or investment analyst. To succeed in investing, a simple “know-how” is fine. The key to successful investing isn’t how much you know, it’s not how much investment terminologies you know, but how much money and time you want to take risks and how willing are you to apply what you have learned. There are many investment terms you should know. Some are common (familiar) and some are uncommon or unfamiliar words. These terminologies can be used when studying an investment opportunity. In accounting and finance career, these lists of words are also be useful. When I am new to investment world, there are only few words I am familiar with. The words I am familiar with are return on investment, dividends, assets, profits, yield and risks. And those words are my stepping stone to start investing in stocks.
The list starts from A-Z. There are 99 investment terminology for beginners written here useful for stock market investing, mutual funds, bonds, real estate, savings account, retirement accounts and taxes. I will provide list of terminologies useful in studying the insurance industry. If you are an insurance agent, these lists may help you. Wait for the list of insurance terms in my next post.
Start searching the meaning and definition of these investment and financial terms. If you have an accounting book, these words have been defined on your book glossary.
99 Common Investment Terminology for Beginners You Should Familiar With
- Adjusted Gross Income
- Annual Percentage Rate
- Annuity
- Asset Allocation
- Asset-Management Accounts
- Assets
- Balance Sheet
- Balanced Funds
- Bear Market
- Bond Buyer Municipal Bonds
- Bond Rating (Debt Rating)
- Break the Buck
- Brokerage Firm
- Book Value
- Bull Market
- Capital Gain
- Certified Financial Planner (CFP)
- Charitable Lead Trust
- Charitable Remainder Trust
- Chartered Financial Consultant (ChFC)
- Closed-End Funds
- Closing Costs
- Compounding (see compound interest)
- Conservation Easement
- Convertible Bonds
- Credit-Shelter or Bypass Trust
- Disclaimer Trusts
- Diversification
- Dividend Yield
- Dollar-Cost Averaging
- Dow Jones Average
- Earnings Yield
- Expense Ratio
- Federal Funds Rate
- Federal Open Market Committee
- Flexible Spending Account
- 401k Plan
- 403b Plan
- Futures Contract
- General-Obligation Bond
- Generation Skipping Trust
- Growth
- Guaranteed Investment Contracts
- Guaranteed-Replacement-Cost Average
- Hard Assets
- Hedge and Hedge Fund
- Home-Equity Debt
- Index Funds’
- Individual Retirement Account (IRA)
- Initial Public Offering (IPO)
- Junk Bonds
- Liabilities
- Liquidity
- Living Trust
- Load Funds
- Loan-to-Value Ratio
- Margin Debt
- Marginal Tax Rate
- Market Timing
- Market-Value Coverage
- Money Market Account
- Money Market Fund
- Municipal Bonds
- Mutual Funds
- NASDAQ Composite
- NASDAQ Stock Market
- NASD – National Association of Securities Dealers
- Net Asset Value (NAV)
- Net Worth
- No-Load Funds
- Option
- Penny Stocks
- Pension Maximization
- PFS Personal Financial Specialist
- Price-to-Book Ratio (P/B)
- Price –to-Earnings Ratio (P/E)
- Prime Rate
- PMI Private Mortgage Insurance
- Profit-Sharing Plan
- QDOT Qualified Domestic Trust
- QPRT Qualified Personal Residence Trust
- Q-TIP Qualified Terminable Interest Property Trust
- REITs Real Estate Investment Trusts
- Revenue Bond
- Risk
- Russell 2000
- Sector Funds
- SEC Securities and Exchange Commission
- S&P 500 Standard & Poor’s 500
- Stock Split
- Total Return (also Return On Investment)
- Treasury Bills, Notes and Bonds
- Unified Credit
- Unit Investment Trust
- Value Investing
- Willshire 500 Index
- Wrap Account
- Yield
- Zero Coupon Bond
Readers of Return On Investment blog (InvestmentTotal.com) are familiar with the other investment terms. I defined some of the investment words like “capital gain”, “stock split”, “return on investment”, “meaning of investment”, etc.
Stay tune to investmenttotal.com for more important vocabulary words used in investing. From time to time, I will write about the meaning and definition of this list of investment terms. Happy investing!
DISCLAIMER: The information provided on InvestmentTotal.com is for general informational purposes only. The content on this website is not intended to be, and should not be construed as, professional financial advice.