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45 Basic Investing Terms You Should Know For Beginners
Contrary to what most people believe or assume, you don’t really need to know everything at once just to get started with investing. The truth is that if you still wait until you finally know all the things there is to learn before you dare to start with the venture, chances are you won’t even be able to begin investing in the first place.
For a beginner, the thought of investing money can be quite intimidating. There is always that anxiety associated with facing risks while knowing that there is a possibility that you won’t get all your money back.
But there is no doubt that one thing more intimidating here is dealing with the investing jargon. Veteran investors and financial advisors use a long list of buzzwords that average investors to understand. However, the language could serve as a serious barrier.
However, there are 45 basic terms you should know for beginners and should be added to your investing arsenal. It would be of great help to understand these terms to ensure that you don’t miss some things you should know or veer away from all of your personal financial goals and objectives. After all, it wouldn’t hurt to be familiar with the basics, right?
So, if you have always wanted to invest yet you feel like you are going to another planet where your cash might not be welcomed at all, maybe the best thing you should do is to learn first the language. This list is not really comprehensive by any means yet having a good understanding of these terms can give you more confidence once you start investing.
P/E ratio or price to earnings
Initial Public Offering or IPO
ETF or Exchange-Traded Fund
Equity or equities
Emerging market fund
Capital loss or capital gain
Learning some or even all of these common and basic investing terms can pay off literally and give you that much-needed confidence boost as a result. Are you familiar with these terms? How many of them are familiar to you and how many are never heard of or completely new?
As you think of the different ways of investing your hard-earned money, make sure you continue using and being familiar with the terms above to serve as your guide. Once you have a better understand of each of these terms, you can expect to feel more confident to research about the potential investments that you can try.
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