8/2/2015 - 2:11 PM

Finance >> Getting Started

Finance >> Getting Started

STOCKS offer an ownership stake in a company
BONDs are akin to loans made to a company (a corporate bond) or other 
  organization (like the U.S. Treasury)

BONDs pay interest twice a year. The amount never changes over the life of
  the BOND. BOND's interest is fixed -> Inflation reduces the value of 
  BOND's payment.

BOND balances the risk of STOCK and stablizes the up and down of the market

STOCK provides inflation protection. STOCK value often rises faster than
- STOCK is used to refer to a share of a publicly traded company

- TICKER/SYMBOL are alphanumeric characters used to identify company stocks

- STOCK QUOTE is another term used to refer to STOCK price

- 4 different trade types:
  > Buy
  > Sell
  > Short - "Shorting" means selling stocks that you do not own
  > Cover - "Covering" means buying back the stocks from market and returning 
    back to your broker.