In this episode of Legacy Wealth Builder, we are learning the basic terms of investing for beginners. It is vital that we discuss the basic terms for our parentpreneurs who are unfamiliar with investing, so you can master the stock market!
One of the key strategies to building wealth is through investing! Here are the terms I discuss in this episode:
Stock: a piece of ownership in a company that can increase or decrease in value.
ETF (Exchange Traded Funds): a passively-managed collection of companies with similarities in industries or services offered.
Bonds: long term investments; a vehicle that is known for consistent steady growth and used to diversify your investment portfolio.
CDs: growth fixed terms savings vehicle (known to diversify your investment portfolio as well).
P&E ratio: essential metric that lets you know how much you pay for a stock compared to how much your company is bringing in.
ROE (Return on Equity): how efficiently the business is generating profit.
Stock market order: buy or sell on a trading venue such as stock market, bond market, commodity, crypto currency and much more.
Limit order: buy or sell a stock at a specific price or better.
Stop limit order: two prices stop price or a limit price.
Market order: to buy or sell goes to the top of all pending orders and gets executed almost immediately.
Dividend aristocrat strategy: a group of stocks that you can dollar cost average into and beat the market longterm.The person that I reference to follow is https://www.instagram.com/raydalio/.
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