Bringing a beginning investor up to speed with the investing vocabulary is not an easy task. This problem does not have a quick solution. However, it is made much easier if one takes the path of passive investing vs. active investing. There is much less to learn and the fundamentals are quite basic. Here at ITA Wealth Management, our preference is passive investing through the use of index ETFs. ETF stands for Exchange Traded Funds and it is nothing more than a basket of stocks that one can buy and sell through a broker such as TDAmeritrade.
How does one learn the vocabulary to the point where one can ask intelligent questions. 1) Read the two elementary volumes I mentioned earlier. 2) For a little variety, when you check in on this blog, scroll down the page and off to the right you will find something called Random Entries. Select one or two of those random posts to read each visit. It will not be long before the lingo begins to catch hold and become second nature.