This Glossary Decodes All The Terms You Need To Know So You Can Start Investing


Back in middle school, I was really into math. In fact, my teachers would send me out in the hallway to study the next grade's textbooks, and I was even assigned extra homework (yes, I was that kid). And then geometry hit. The second my teacher started rattling off this foreign language to me — medians and tangents and slopes, oh my — I was a glassy-eyed goner, and my grades tanked. Unfortunately, this tendency to shy away from confusing words followed me into learning about finances, and I'm not the only one.

When it comes to the world of investing, many people will feel overwhelmed because it seems like you have to build an entirely new vocabulary. I'll let you in on a little secret, though: You only have to learn a few key terms time to start building your financial future. Knowing that terminology could be a major scare factor for millennial women looking to invest, Bustle partnered with Vanguard to create a glossary of common investment lingo. Read on to learn the basics, then make sure to bookmark this page for future reference.

Allison Gore/Bustle

Please remember that all investments involve some risk. Be aware that fluctuations in the financial marketing and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

Diversification does not ensure a profit or protect against a loss.

Investments in bonds are subject to interest rate, credit, and inflation risk.

This post is sponsored by Vanguard.

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