Friday, November 16, 2007

Getting Technical's financial Glossary

Welcome to Getting Technical's financial Glossary Of Investment Terms that covers the important investment stuff. Study the following and you’re on your way to being a successful investor.

By the way, did you hear about the two Financial Planners on the Titanic? One of them felt the ship shutter and shouted - I think we hit something. The other replied - why should you care, it's not your boat.

Important Stock Market Definitions

Bull Market: What the markets do after you sell because of a recession, corporate scandals, political unrest, war jitters and soaring oil & gold prices.

Bear Market: What the markets do after you buy because of bright economic conditions, corporate earnings growth, peace in the middle east, and low oil & gold prices.

Bonds: A magical piece of paper that is worth more when the economy is bad and then worth less when the economy is really bad.

Stock: A magical piece of paper that is worth more when the economy is good and then worth less when the economy is really good.

Call Option: The opportunity to lose small amounts of money over short time periods.

Cash Flow: The movement of money from a mutual fund to the fund manager. Sometimes called management fees or MER’s.

Commission: The money you pay to your broker to buy and sell.

Trailer Fees: The money you pay to your financial planner to buy and never sell.

Day Trader: The opportunity to loss large amounts of money over short time periods.

Long Term Investor: A day trader who has refused to sell a losing trade.

Good Investor: Will agonise for weeks over a buy decision and sell on impulse.

Bad Investor: Will buy on impulse and agonise for weeks over a sell decision.

Investor Advocate: A bad investor looking for someone else to blame.

Financial Planner: Jack of all trades and master of none.

Margin Debit: The unique opportunity to have your original investment go to zero and lose 200 percent of your capital.

Market Correction: What the markets do the day after you buy stocks.

P/E Ratio: Better known as the panic/exit ratio. Fund managers use this number to calculate the time required for all of the unit holders to bail out of a fund.

Short Position: A type of trade where a person sells stocks they don't actually own. You can also be short on rent payments, car payments and alimony.

Stock Broker: The master illusionist who disappears when your stock goes down, only to reappear if the stock subsequently rallies.

Stock split: When your ex-wife and her lawyer split your equity portfolio equally between themselves.

Fundamental Analyst: Analysts who think they are right.

Technical Analyst: Analysts who think the market is right.

Momentum Investing: The art of buying high and selling lower.

Value Investing: The art of buying low and selling lower.

We welcome other additions to our Glossary

Dollar Cost Averaging: The Strategy of averaging down on a losing mutual fund investment.

Bill Carrigan

3 comments:

Jason said...

visited the site

Sean said...

Very funny and informative

rob said...

believe your list will be complete only with inclusion of the most impt. investment tool of our time -dollar cost averaging.