Introduction
Language is a tool.
The market has its own shorthand. Learning a few core terms does not make a decision for you, but it gives you a better map.
1. Share
A share is a unit of ownership in a company. Its market price changes as expectations, business results and demand change.
2. Index
An index groups securities to represent part of a market. It is a reference point, not a promise of what every investment will do.
3. Volatility
Volatility describes how widely prices move over time. Higher movement can mean both opportunity and risk.
4. Diversification
Diversification spreads exposure so one company, sector or asset does not determine the entire outcome.
5. Horizon
Your horizon is the period before you need the money. Time affects which risks may be tolerable.
Conclusion
Use this vocabulary as a starting point, then keep learning. Investments are subject to market risks.
Explore categories ↗