Investment Terms You Should Know

When it comes to investing in something, the more you know the better — and this spans across all types of investments too! Life is full of opportunities in which you can better educate yourself, which can only help you later on. Of course, when it comes to your finances, this is extremely important. Because of this, we’ve gathered a few of the key investment terms you should at least have a basic understanding of before you start thinking about it. Check them out below!

• Ask. This is considered to be the lowest price a seller is willing to accept when he/she is talking about a stock.
• Bull Market. This term is usually describing the market over the course of several months, and indicates that most stock prices have been on the rise.
• Blue Chip. This is describing a company that has a track record of both solid earnings, increasing dividends, and a great balance sheet.
• Dividends. This is a portion of the profits that are paid to the shareholders on either a quarterly or annual basis. It is not required to declare dividends on common stock, however.
• Mutual Fund. This represents an investment company that combines the money from a large group of investors to buy both stocks and other investments.
• Securities. This is the word that carefully outlines stocks, bonds, and bank deposits all as one.
• Yield. When a company is to pay a dividend, a yield is a percentage of the dividend over the current stock price. For example, If a stock is $10/ share and pays a dividend out of $1, the yield is 10%.

Of course, putting these terms to good use is always another great idea for your future. If this is something you’re thinking about, make sure to sit down with the careful and professional financial planners at American Investment Planners LLC. From investments to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.