Common Broker Terms
Many people have only a general idea of where their funds are invested. While many clients are offered online listings of their assets, few understand what they mean. Even when asked, bankers have a hard time explaining things in a way that many can totally grasp. Tired of your money guy talking circles around you? Below are a few key terms to help you understand the lingo of the business.
Stock – A certificate that proves partial ownership of an organization or business.
Bond – A document offered by the government or a private company which guarantees repayment of money that was borrowed on a previously decided date.
Broker – A person who handles the financial investments of their clients. They buy and sell items such as stocks according to predictions about the stock market.
Stock Market – A global organization where brokers meet to buy and sell financial securities. You can keep track of the ups and downs online.
Portfolio – A complete listing of investments owned by a certain party.
Mutual Fund – A mutual fund is a type of company that used the funds of its investors to purchase a variety of stocks from other companies.
Fidelity Bond – A kind of insurance that protects investors from financial losses they experience because of fraud on the part of a specified company or individual.
Share – Part of a company’s stock. These are usual worth small, equal amounts and investors has the option of purchasing more than one.
Shareholder – Also known as a stockholder, this is a person who owns one or more shares of a business’s stock.