20 Stock Words That You Should Know By Age 30

Dear Ready to Invest, 

Before we discuss stock words (aka stock vocabulary), let me say this:

Once you have started earning money, creating a budget is the priority. Then, above all, you have to include a category for paying yourself. In fact, you should always pay yourself first. 

What does paying yourself first mean?

Pay yourself first means setting aside money out of your pay, before you pay any other bills.

Then, the money that you set aside is to be used for your future. This money is set aside for the purpose of investing. You can’t save your way to wealth, you have to invest!

What can I invest in?

I am suggesting that you start investing in stock before age 30. Doing so, will allow your stock portfolio to grow and for dividends to compound. 

You may be wondering…

Where do I start with investing? 

Emphatically, I suggest that you start with investing in stock. As an erstwhile teacher, I suggest that you begin with learning some introductory stock words. 

So I suggest that you start with these…

20 Stock Words That You Should Know

The First Ten Stock Words

Appreciate:

When something appreciates, it means that the price or value goes up. So if I bought a stock for $50, and it appreciates by $10, I could sell it for $60. That’s a $10 profit.

Average Down:

To average down is to lower the average price paid for a stock. This is done by buying more of the stock when the stock price is lower than the owner’s current average price. 

Bear Market

A bear market is when the investors believe that the market has a downward trend. This means prices for the stocks are expected to go lower.  

Bull Market

A bull market is when the investors believe that the market has an upward trend. This means prices for the stocks are expected to go higher.  

Dividend

A dividend is a distribution of profits paid to shareholders, paid by the corporation 

ETF

ETF is the abbreviation for Exchange Traded Funds. Exchange Traded Funds are baskets of stocks that are sold together. Each share of an ETF contains a portion of all of the stocks that would be in that ETF’s basket. ETF are traded during the day, bought and sold like individual stocks. 

(The) high

The high is the highest price of the stock for a stated period. For instance, the high for the day would be the highest price that the specific stock was for that day. 

Investment

An investment is something that you buy with the hopes that it will make you more money. 

IPO

IPO stands for Initial Public Offering. An IPO is what it is called when a private company becomes a public company and its stock becomes available to public investors. 

Limit Order

A Limit order is an order in which the investor sets a limit for either the maximum they are willing to pay for a stock or the minimum they are willing to accept when selling the stock. In other words, a limit is being set on the price of the stock when buying it or selling it. 

The Next 10 Stock Words

(The) Low

The low is the lowest price of the stock for a stated period. For instance the low for the day would be the lowest price that the specific stock was for that day. 

Order

An order is an order to buy or sell stock. The order can be at the current market price, or the order can be set to be made if the stock is no higher or lower than the investor decides. 

Portfolio

A portfolio is a collection of investments. The collection can include stocks, bonds, and funds, amongst other possibilities. 

Sector

A sector is a group of stocks that are in the same business. For example, Johnson and Johnson and Humana are both in the healthcare sector. It is generally agreed that there are 11 different stock market sectors. 

Stock

Stock represents ownership of a fraction of a corporation.  Units of stocks are called shares The more stocks  that you own, the more of the company you own.  If a corporation has 1 million shares outstanding, and you 1 share, in theory, you own 1-one-millionth of the corporation. 

Stock Rally

A stock rally is a sudden and brief increase in the prices of stock during a time when the prices have been down. 

Stock Market

The stock market is where stocks are bought and sold. This allows the public companies to raise money.

 

Stock Symbol

A stock symbol is an abbreviation for a company’s name. Stock symbols are also called ticker symbols. 

Trading

Trading is the buying and selling of stocks.

Yield

The yield refers to the dividend yield which is how much is paid in dividends (to the stock owner), expressed as a percentage of the cost of one share of the stock. 

In conclusion, take time to study and learn this list of stock words. Vocabulary is the beginning of understanding.  Learn the language of money. Knowing it is the beginning of learning about how to discuss, understand, and invest in the stock market. 

Remember: I Want You to be Young, Building Health & Wealth.

Hugs, 

Rich Mom 

Do you want to learn more? Read My Posts:

Why Should I Invest?

Uh-Oh! Did You Forget Everything That You Learned In Your Financial Literacy Class? 

Spilling the Tea on How To Start a Robinhood Investment Account

One of my favorite ways to invest is through the stock market. 

If you are interested in starting to invest in the stock market, feel free to use my Robinhood link. I love the Robinhood app, and I use it every day. 

Robinhood is giving away free stock when you sign up for an account. 

If you use my Robinhood link, I may receive a small payment. But, it will not cost you any additional money. 

I appreciate the payment that I may get, because it helps to cover the cost associated with producing this blog. Thank You! 

Who is Rich Mom? 

If you are wondering who Rich Mom is, check out my “About Rich Mom” page. 

Please note: I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor. 

The information shared here is not intended as financial advice, just entertainment and encouragement.