An introduction to investments.
Investing for the future has always been important, but is more important today. Pensions and other company supplied retirement plans are a thing of the past. The responsibility of saving for retirement falls directly on the individual. The sooner one begins saving and investing, the better chance of success through the power of compounded growth.
There is so much information at our disposal, but it can be quite overwhelming. Not all of it is credible or responsible either. Information travels at the speed of light, but knowledge doesn’t. I decided to write this book as a basic primer to make sense of terminology that is spoken in the investment industry but might not always be understood beyond it.
Investing for the future has always been important, but is more important today. Pensions and other company supplied retirement plans are a thing of the past. The responsibility of saving for retirement falls directly on the individual. The sooner one begins saving and investing, the better chance of success through the power of compounded growth.
There is so much information at our disposal, but it can be quite overwhelming. Not all of it is credible or responsible either. Information travels at the speed of light, but knowledge doesn’t. I decided to write this book as a basic primer to make sense of terminology that is spoken in the investment industry but might not always be understood beyond it.
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“A” is for Alpha
The Alpha of an investment is compared to a specific benchmark, like the S&P 500. A positive Alpha of 2.0 would mean the investment is outperforming its benchmark by 2%. A -5.0 Alpha means the portfolio is underperforming by 5% quantifiable.
“B” is for Bonds
While a stock is an equity security, a bond is a debt security. When you buy a bond, the issuer is actually borrowing money from you and pays you interest until they pay you back in full.
“C” is for Commodities
A commodity is a basic good that can be purchased interchangeably in the open market for consumption and/or investment. Commodities are generally natural resources such as metals, agriculture, and oil.
“D” is for Dividend
Many investors seek income as well as price appreciation. Income distributions received from stock investments are called dividends. Established and mature companies often pay a portion of their profits back to their shareholders to incentivize them to own the stock.
INVESTING FROM A TO Z
No more investing for dummies.
The advancement of the Internet has made investing easier in some respects, but much more difficult in others. Markets move faster than ever today. In this age of globalization, global markets are intertwined. Commodities, currencies, and global trade bind economies from the United States to Asia, Europe, and Latin America, and everywhere in between.
Investing from A to Z is the perfect way to learn all the important procedures and nomenclature involved before beginning your investment endeavors. It’s descriptive point of view and accompanying illustrations make it quick and easy to build your confidence. The goal of this book is an inviting educational piece to help build the necessary tools and knowledge to be a successful and responsible investor.
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