What Investing Terms Do I Need To Know Starting Out?

At first, investing can seem confusing, but it doesn’t have to be complicated. The great thing about it is, you don’t need to know everything there is to know about investing to begin. As long as you understand some basic investing terminology, you’ll have what you need to start.

Though this isn’t a comprehensive list of investment terms, it’s enough to get you going. And, with investing, starting is the most important thing you can do!

Investing Terminology to Know

What to invest in?

Stocks: Investing money in a company’s stock means you’re buying a small portion of the company.

When a company in which you own stock grows and makes money, the value of your stock generally goes up. The opposite is true as well. If a business isn’t doing well, the value of your stock will go down.

Bonds: Investing your money in a bond means you’re essentially loaning money to a business or government entity in return for collecting interest. Individual bonds have maturity dates.

Bonds are generally considered relatively low-risk investments. However, there’s always the chance a business or government will falter and/or file bankruptcy.