14 Easy Explanations for Stock and Bond Terms

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You might think that investing is a simple concept. Will Rogers famously said: “Don’t gamble. Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.”

Financial advisors used to be called stockbrokers, and stocks and bonds were what they bought and sold. Although some people might have characterized them as salespeople, those within the industry consider themselves professionals. They developed their own language for speaking with each other.

Investing is complex. Financial advisors know that fundamentals might influence the direction of a stock in the long term, but technical factors influence its day-to-day movement. Bonds have their own terminology.

It is easy for clients to get lost, not knowing what you are talking about. Here are 14 simple explanations for concepts they might not understand.

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