Investing jargon. We hate it. Nothing makes it harder for new investors to get started than overcoming the wave of acronyms and terminology that comes with investing. We both found it challenging when we started, and we’re hoping episodes like this make it a bit easier for those just starting out. We’ve chosen 5 key investing terms – some because they particularly annoy us, others because they’re quite topical – and we break them down so you can understand them.
For more experienced investors that may be familiar with these terms, we discuss the utility of some of these terms and Alec quizzes Bryce throughout. So even if you’re familiar with the terms, you’ll at least get some decent trivia questions out of this episode!
In this episode you will learn:
- 5 key investing terms, the way they’re used and what they mean.
- What the terms Alpha and Beta mean for investors.
- Why risk and volatility are not the same thing.
- What Blue Chip stocks are, and where the name came from.
- Understanding what an Index is, and how Alec thinks about them.
- How the first index came about and what was included in it.
- Why it is important to look beyond share price and look at a company’s market capitalisation.
- The first company to be worth $1 trillion.
Stocks and Resources Discussed:
- Equity Mates Pardon the Jargon #2 blog post.
- How to make money in bull and bear markets – Stan Weinstein (Book Bryce is reading).
We’re partnering with BetaShares and General Assembly to put on a free, live event to discuss all things personal finance and investing. For the details and to sign up, click the links below: