Financial terms you should know

Financial terms you should know

In todays quick blog post I thought I would cover some terms I typically use in my articles and post. I just want to make sure all my readers and followers are educated so that you can clearly understand my articles. While not everyone might need this it still might be helpful to polish up on some old knowledge to refresh it into your minds. You might also learn something new or something you forgot so make sure to read the through the whole post to get the knowledge. Now that we've got that out the way we can dive into the blog post.  



Investing terms

FOMO- The fear of missing out Example: Buying dogecoin because you don't want to be left out on dogecoin going to the moon

HODL- Hold on for dear life Example: Holding a bitcoin for 10+ years

Bull- A market that is in a uptrend Example: the crypto market during the spring of 2021

Bear- A market that is experiencing a downtrend Example: The current state of the crypto and stock markets as of writing this post (2/19/22)  

Cycle- A certain time or period Example: The current bear run of the crypto market 

Public- A company that is listed on the stock exchange Example: S&P 500 

Private-  A company that isn't listed on any public exchanges Example: Spacex 

Liquidity- The amount of money behind a project or company or asset Example: The us dollars backing bitcoin

Mutual Fund- an investment program funded by shareholders that trades in diversified holdings and is professionally managed by professional traders Example: A fidelity account

ETF- Exchange traded fund Examples: SPDR S&P 500
  
Bonds- A bond represents a promise by a borrower to pay a lender their principal and usually interest on a loan Example: Government bonds

Leverage- Leveraged investing is a technique that seeks higher investment profits by using borrowed money Example: locking bitcoin up to get more bitcoin essentially using your original bitcoin you locked up as collateral for more bitcoin to be lent to you



Personal finance terms

APY- Annual Percentage Yield Example: The interest you get paid on your savings account
Market- A sector of a certain assets Example: The cryptocurrency market

Passive income- A income source that is earned without any direct work Example: Running a business or yield farming with cryptocurrency 

401k- a 401(k) plan is an employer-sponsored defined-contribution pension account employee funding comes directly off of your paycheck and may be matched by the employer

FDIC secured- FDIC insured account is an account at an institution where deposits are federally protected by the united states against institutional failure or theft Example: Your bank account

Collateral- Collateral is the offering of an asset or money in order to back a loan Example: 





My Final Words 

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