Sunday, June 2, 2013

Investing 101

1. STOCK



This tag shows ownership of a personal object when attached to it just like stock shows ownership in a corporation.

2. BOND



Promise rings symbolize a promise made to another just like bonds are a promise to repay a loan by a certain date.

3. PRIMARY/SECONDARY MARKET



In a primary market, security is purchased from the issuer but in a secondary is not bought directly from the issue just like in  a garage sale where things aren't bought from the original store they were sold in.

4. BULLS/BEARS



Bulls view things in a glass half full way while bears see it in a glass half empty sort of way.

5. Selling Short



When people rent homes, they don't own them but are basically "borrowing" them, just like when borrowing a security from a broker.

6. Franchise



Subway is a franchise and I work for subway!

7. Underwrite/Underwriter/Going Public:



Like a security guard, it is "insuring" someone or something and making it safer for the issuer to issue a security.