Stock · Share
A unit of ownership in a company. Own one share and you own a tiny slice of the business and its future profits.
Exchange-Traded Fund · ETF
A basket of assets that trades like a single stock. The cheap, one-click way to own a whole index or theme.
Index
A measured basket of stocks standing in for a market — e.g. the S&P 500 tracks 500 large US companies.
Index Fund
A fund that simply mirrors an index instead of picking stocks. Low fees, broad exposure — the default for most long-term investors.
Dividend
A slice of profit a company pays out to shareholders, usually quarterly. Cash return you get without selling.
Bull Market
A sustained rise in prices and optimism. "Being bullish" = expecting things to go up.
Bear Market
A sustained fall, usually 20%+ from the peak. "Being bearish" = expecting things to go down.
Compound Interest
Earning returns on your past returns. Small gains snowball over years — the single most important force in investing.
Ticker
The short symbol a security trades under — AAPL for Apple, VOO for the Vanguard S&P 500 ETF.
Broker
The firm or app that places your buy and sell orders on an exchange and holds your assets.
Blue Chip
A large, established, financially sound company with a long track record. Lower drama, steadier returns.
Initial Public Offering · IPO
The first time a company sells shares to the public and starts trading on an exchange.