COMMON INVESTMENT TERMS EXPLAINED: Part 12

Another round of terms for you! Let us know if you have any questions about this batch.

Income Statements: Financial documents listing the income and expenses of a company.

Inflation: This occurs when the money supply is too great. It is a rise in price of a specific “bucket” of consumer goods. The percent increase from the last measurement is called the inflation rate. Interest rates will tend to rise overall, and this will slow market growth.

IPO or Initial Public Offering: The initial offering of a company’s stock. Also used in mutual funds terminology, an IPO is a closed-end fund’s first offering of shares in that fund.

Margin: A method to finance stock purchases. The stock that you already own is used as collateral for a loan. The loan is then used to purchase additional stock.

Margin Call: If the stock you’re using as collateral loses too much value, you must correct the situation by either depositing more money or selling other securities.

Thanks for reading! We’ll be back with more terms for you next week. Reach out if you’re interested in chatting about your investing journey.