Investment Vocabulary


Are you searching for useful Investment Vocabulary? Here you will find the meaning of the most common investment words such as Assets, Bid, Bond, Bear and Bull market, Capital, Diversification, Dividend, Futures, Mutual fund, Shareholder, Stock market, and more.

The most common Investment Vocabulary and Words.

  • Analyst – an expert who studies financial data.
  • Agent – a securities firm – acts on behalf of its clients as buyer or seller of a security.
  • Assets – asset is all that a company or person owns, including money, securities, equipment and real estate.
  • Bid – The price a buyer is willing to offer.
  • Blue Chip Stocks – Stocks of leading and nationally known companies.
  • Bond – Promissory notes issued by a corporation or government to its lenders. One of the most common investment vocabulary words.
  • Bear market – A market in which stock prices are falling.
  • Bull market – A market in which stock prices are rising or are expected to rise.
  • Capital – financial value of assets, such as cash.
  • Capital stock – all shares representing ownership of a company.
  • Capital gain – profit resulting from selling an asset for greater than purchased price.
  • Capital loss – loss resulting from selling of an asset for less than its purchase price.
  • Commodities – include agricultural products and natural resources. They are used for commerce that are traded on a separate, authorized commodities exchange.
  • Diversification – investing in many different assets rather than to reduce risk.
  • Dividend – a portion of a company’s earnings which is paid to the shareholders. One of the most used investment vocabulary words.
  • Equities – stocks, which represent a share in the ownership of a company.
  • Futures – futures are contracts to buy or sell securities at a future date. One of the most common investment vocabulary words.
  • Insider – those who are presumed to have access to inside information concerning the company.
  • Interest – a fixed charge for borrowing money.
  • IPO – Initial Public Offering.
  • Mutual fund – Savings fund that uses cash from a pool of savers to buy securities.
  • NASDAQ – National Association of Securities Dealers Automated Quotation system.
  • Portfolio – all the securities held by an investor.
  • Prospectus – a paper containing information of a proposed undertaking.
  • Securities – showing ownership of stocks, options, etc.
  • Shareholder – owner of shares.
  • Speculator – someone who buys and sells stocks and shares.
  • Stock – shares of an issuer that are traded on a stock exchange. One of the most used investment vocabulary words.
  • Stock market – a system for buying and selling shares of companies.
  • Volatility – being easily excited.
  • Yield – the measure of the return on an investment and is shown as a percentage.

See also the essential insurance vocabulary and marketing vocabulary.

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