Then… divide that number by total capital. We will be cover ing the basics that you will see when you research a company through your broker. Nothing has fundamentally changed in its long-term value, but it no longer has the Margin of Safety or Payback Time we’re looking for. An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the S&P 500. The CEO and CFO have to fill it out properly and sign it, risking jail time if the information is false or inaccurate. The first Investment Terminology for Beginners you should learn is called a stock or equity. Learn how to invest in the stock market. Stock is ownership in companies that are public – meaning they have sold off chunks of their company. So what is it? Buy. Check out the video below for a video version of Basic Stock Market Investing Terminology for Beginners Part 2! And when the price goes up, you end up buying fewer shares. Then there’s the price it’s actually worth. An investor who believes the market as a whole or a particular stock will decline. This is one of the most common real estate investing terms. Let’s say that’s fourteen dollars. Then there’s how much we want to buy it for. Subtract the invested capital of two-hundred dollars, they made a hundred dollar profit. There are 99 investment terminology for beginners written here useful for stock market investing, mutual funds, bonds, real estate, savings account, retirement accounts and taxes. BULL. It produces a phenomenal retirement fund! Well you're in luck, we'll lead you through the jargon maze. In this post, I’m going to show you investment terms you will come across very quickly as beginners. And buy it on sale! Phil’s goal is to help you learn how to invest and achieve financial independence. The difference between the sticker price and how much we want to buy a business for is the Margin of Safety. Make sure the business is durable and has a CEO with integrity. We explain the basics of simple investing and aim … We never buy when the price is up. We never make purchases at the sticker price. Assets are items that have value in the market. Guest Author. Sticker Price is determined by performing calculations on the Four Growth Rates (see definition). I want you to disregard the S&P 500 when it comes to making money. Today, however, if the stock market goes down, your retirement fund decreases. Investing for Beginners: Basic Investment Terminology You own part of the company (aka a share in the company). Even if you only invest 5% of your money, it would still be worth it. Asset: Something that has the potential to earn money for you. 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