99 Investment Terminology for Beginners

Posted by Grace under Investing, Personal Finance on November 8, 2015

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.

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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.

investment terminology for beginners

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99 Common Investment Terminology for Beginners You Should Familiar With

  1. Adjusted Gross Income
  2. Annual Percentage Rate
  3. Annuity
  4. Asset Allocation
  5. Asset-Management Accounts
  6. Assets
  7. Balance Sheet
  8. Balanced Funds
  9. Bear Market
  10. Bond Buyer Municipal Bonds
  11. Bond Rating (Debt Rating)
  12.  Break the Buck
  13.  Brokerage Firm
  14.  Book Value
  15.  Bull Market
  16. Capital Gain
  17.  Certified Financial Planner (CFP)
  18. Charitable Lead Trust
  19. Charitable Remainder Trust
  20. Chartered Financial Consultant (ChFC)
  21. Closed-End Funds
  22. Closing Costs
  23. Compounding (see compound interest)
  24. Conservation Easement
  25. Convertible Bonds
  26. Credit-Shelter or Bypass Trust
  27. Disclaimer Trusts
  28. Diversification
  29. Dividend Yield
  30. Dollar-Cost Averaging
  31. Dow Jones Average
  32. Earnings Yield
  33. Expense Ratio
  34. Federal Funds Rate
  35. Federal Open Market Committee
  36. Flexible Spending Account
  37. 401k Plan
  38. 403b Plan
  39. Futures Contract
  40. General-Obligation Bond
  41. Generation Skipping Trust
  42. Growth
  43. Guaranteed Investment Contracts
  44. Guaranteed-Replacement-Cost Average
  45. Hard Assets
  46. Hedge and Hedge Fund
  47. Home-Equity Debt
  48. Index Funds’
  49. Individual Retirement Account (IRA)
  50.  Initial Public Offering (IPO)
  51. Junk Bonds
  52. Liabilities
  53. Liquidity
  54. Living Trust
  55. Load Funds
  56. Loan-to-Value Ratio
  57. Margin Debt
  58. Marginal Tax Rate
  59. Market Timing
  60. Market-Value Coverage
  61. Money Market Account
  62. Money Market Fund
  63. Municipal Bonds
  64. Mutual Funds
  65. NASDAQ Composite
  66. NASDAQ Stock Market
  67. NASD – National Association of Securities Dealers
  68. Net Asset Value (NAV)
  69.  Net Worth
  70. No-Load Funds
  71. Option
  72. Penny Stocks
  73. Pension Maximization
  74. PFS Personal Financial Specialist
  75. Price-to-Book Ratio (P/B)
  76. Price –to-Earnings Ratio (P/E)
  77. Prime Rate
  78. PMI Private Mortgage Insurance
  79.  Profit-Sharing Plan
  80. QDOT Qualified Domestic Trust
  81. QPRT Qualified Personal Residence Trust
  82. Q-TIP Qualified Terminable Interest Property Trust
  83. REITs Real Estate Investment Trusts
  84. Revenue Bond
  85. Risk
  86. Russell 2000
  87. Sector Funds
  88. SEC Securities and Exchange Commission
  89. S&P 500 Standard & Poor’s 500
  90. Stock Split
  91. Total Return (also Return On Investment)
  92. Treasury Bills, Notes and Bonds
  93. Unified Credit
  94. Unit Investment Trust
  95. Value Investing
  96. Willshire 500 Index
  97. Wrap Account
  98. Yield
  99. 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!

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