Seven Investment Terms Everyone Should Know

For those who have never given their financial future a second thought, the term "Financial Planning" could be a scary one. Investments can be a smart way to invest money for your future, but it can be confusing for those who have no experience in the financial business. Before you consult a financial planner it is wise to become familiar with some of the terminology that you are likely to hear from him or her.

* Mutual Fund-An investment made with money that is collected by individuals with an investment goal in mind. The mutual fund is handled primarily buy a person known as the fund manager. Mutual funds are easy and cost efficient, since you are not responsible for making the decision as to where to invest the money.

* Asset Allocation Fund-A mutual fund that incorporates several types of investments such as stocks, bonds, real estate, and foreign stocks. These are typically for the small investors who want to invest in a variety of funds in order to maintain a constant return.

* Risk-Return Trade-Off-This is the amount of money that you can stand to lose versus the amount of money you are willing to invest. Investments that are low-risk often have low payoffs, while investments that are high risk usually have higher payoffs. When investing money you must determine the amount of money you can lose before determining how much money you will invest and where you will invest it.

* Compounding-Money made from an investment that will then be reinvested into the same or another investment to generate its own earnings.

* Bonds-Money that is loaned to a company or the government at a specified interest rate. The company will usually give some kind of document that states the amount loaned and the agreed upon interest rate and the total amount that will be repaid at a specific time or "maturity date".

* Stocks-Pieces of a company that are for sale. One would buy stocks from a company at a given price in hopes that the company would gain a significant amount of money and that they would be able to sell the stocks at a higher price.

* Money Market Funds-Money invested in debt by a mutual fund. The goal is to obtain money from interest to the debt. The benefit of the Money Market Account is that they offer very low investments of less than $1.00.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.

MORE RESOURCES:

Allianz investing $2.5B in Hartford Financial - The Associated Press

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/0i-0fd=Rurl=http://www.earthtimes.org/articles/show/the-hartford-names-greg-mcgreevey-chief-investment-officer,567104.shtmlcid=1254771144ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNHIOEZ_rtcYZ2v1W0wNFyOjCwF7Rgimg src=http://news.google.com/news?imgefp=ZRejDSoZ9-gJimgurl=www.earthtimes.org/newsimage/Bus_20081006121021_81.jpg width=80 height=60 alt= border=1brfont size=-2Earthtimes (press release)/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/0-0fd=Rurl=http://ap.google.com/article/ALeqM5iTHQpRw9waGiHQoOfBHIjDufm6KQD93L1VG01cid=1254771144ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNFT4uBF6dR4mb4-12nA04q_rH6hTgAllianz binvesting/b $2.5B in Hartford Financial/abrfont size=-1font color=#6f6f6fThe Associated Pressnbsp;-/font nobr16 hours ago/nobr/fontbrfont size=-1CHARLOTTE, NC (AP) — Hartford Financial Services Group Inc. said Monday it will receive a $2.5 billion binvestment/b from Allianz SE. The Hartford, Conn. b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-1fd=Rurl=http://www.wtnh.com/Global/story.asp%3FS%3D9129303cid=1254771144ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNFMKITiuoaC12FmbHOKIXPUHwO2vgAllianz binvesting/b $2.5B in Hartford Financial/a font size=-1 color=#6f6f6fnobrWTNH/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254771144hl=ennobrall 202 news articles/nobr/a/font/div/font/td/tr/table

Resist urge to cut losses; keep investing - Minneapolis Star Tribune

2nd UPDATE:Ackman:Wachovia Should Sell Businesses Separately - CNNMoney.com

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/2-0fd=Rurl=http://money.cnn.com/news/newsfeeds/articles/djf500/200810061346DOWJONESDJONLINE000549_FORTUNE5.htmcid=1254866699ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNF5gNQ-y2HUxODlzTsp5zzXGhlamw2nd UPDATE:Ackman:Wachovia Should Sell Businesses Separately/abrfont size=-1font color=#6f6f6fCNNMoney.comnbsp;-/font nobr12 hours ago/nobr/fontbrfont size=-1Speaking at the fourth annual Value bInvesting/b Congress at Lincoln Center in New York , Ackman said his hedge fund has piled into Wachovia shares because he b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/2-1fd=Rurl=http://www.streetinsider.com/Insiders%2BBlog/StreetInsider.com%2BReporting%2BFrom%2BValue%2BInvesting%2BCongress%2BToday/4044496.htmlcid=1254866699ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNFL0w6rrJaejxjm8giAZjloyN-1uAStreetInsider.com Reporting From Value bInvesting/b Congress Today/a font size=-1 color=#6f6f6fnobrStreetInsider.com (subscription)/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/2-2fd=Rurl=http://money.cnn.com/news/newsfeeds/articles/prnewswire/200810060800PR_NEWS_USPR_____NY37073.htmcid=1254866699ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNHzsktzR_GLEUoaTbtnQFGgLmHNwAWilliam Ackman to Speak About Pershing Square#39;s bInvestment/b in Wachovia/a font size=-1 color=#6f6f6fnobrCNNMoney.com (press release)/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/2-3fd=Rurl=http://www.streetinsider.com/Insiders%2BBlog/Guess%2BAckmans%2BFirst%2BInvestment%2BIn%2BThe%2BFinancial%2BSector%2BIn%2BFive%2BYears%253F/4046095.htmlcid=1254866699ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNGUU05rTWBYNVy-H0K2i9tIhVL-dgGuess Ackman#39;s First bInvestment/b In The Financial Sector In Five Years?/a font size=-1 color=#6f6f6fnobrStreetInsider.com (subscription)/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/2-4fd=Rurl=http://www.streetinsider.com/Insiders%2BBlog/Pershing%2BSquares%2BAckman%2BIs%2BExcited%2BAbout%2BAIG/4046187.htmlcid=1254866699ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNE60oR2rb0gCIUCCEmc-SCKiNzS6QnobrStreetInsider.com (subscription)/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/2-5fd=Rurl=http://www.streetinsider.com/Insiders%2BBlog/Ackman%2BAnswers%2BA%2BQuestion%2BOn%2BSears%2BHoldings%2B(SHLD)/4045922.htmlcid=1254866699ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNGq23vwwaFfSYFOfDEIFmM1eRwWyQnobrStreetInsider.com (subscription)/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254866699hl=ennobrall 14 news articles/nobr/a/font/div/font/td/tr/table

More comments from Carl Icahn from the Value Investing Congress: - StreetInsider.com (subscription)

Tamarack Funds Announces Participation in US Treasury Department#39;s ... - MarketWatch

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/4i-0fd=Rurl=http://www.planadviser.com/investing/article.php/2922cid=1252238052ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNHBo8xQxo4HDdr0_PchAlYUZyOFTAimg src=http://news.google.com/news?imgefp=P3_Oj4chvbsJimgurl=www.planadviser.com/images/articles/2008/10/federalreserve.jpg width=80 height=54 alt= border=1brfont size=-2Planadviser.com/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/4-0fd=Rurl=http://www.marketwatch.com/news/story/tamarack-funds-announces-participation-us/story.aspx%3Fguid%3D%257BBD2D3D46-B493-43DA-B5F1-500D91993CF8%257D%26dist%3Dhpprcid=1252238052ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNHjBMqT-HuPDHu_-yrGI_Er9QmCuwTamarack Funds Announces Participation in US Treasury Department#39;s b.../b/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr13 hours ago/nobr/fontbrfont size=-1Although the Funds seek to preserve the value of your binvestment/b at $1.00 per share, it is possible to lose money by binvesting/b in the Funds. b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/4-1fd=Rurl=http://www.trib.com/articles/2008/10/05/news/business/52ff151ab1bfc16b872574d8002109a3.txtcid=1252238052ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNE1Kw5CqJSiajXNwnOfqI4Anw2XmgCan you be a successful investor?/a font size=-1 color=#6f6f6fnobrCasper Star-Tribune Online/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/4-2fd=Rurl=http://www.myiris.com/newsCentre/newsPopup.php%3FfileR%3D20081004180651194%26dir%3D2008/10/04%26secID%3Dlivenewscid=1252238052ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNEPpCZ4OzWkpUXtN2rJN8c_yHYYSwThe mutual methods/a font size=-1 color=#6f6f6fnobrMyiris.com/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/4-3fd=Rurl=http://www.divine.ca/en/career-and-money/articles/c_20_i_3444/mutual-fund-investing-1.htmlcid=1252238052ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNFz0pyUvkQ7AP0z_y9UnwmUkTXsAQMutual Fund bInvesting/b/a font size=-1 color=#6f6f6fnobrDivine/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/4-4fd=Rurl=http://online.barrons.com/article/SB122309058657004731.html%3Fmod%3Dgooglenews_barronscid=1252238052ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNEFfwcvBrjzjhJBP5qxboMKHqq8TwnobrBarron's/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/4-5fd=Rurl=http://www.business-standard.com/india/storypage.php%3Fautono%3D336365cid=1252238052ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNEPIFdVldXmWPUJkjCAA3iUEOqqcgnobrBusiness Standard/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1252238052hl=ennobrall 214 news articles/nobr/a/font/div/font/td/tr/table

Rich Japanese firms investing abroad - Minneapolis Star Tribune

Sustainable investing to get boost from tie-up-PRI - Reuters

Elliot Gue Hosts Premier Interactive Online Investors#39; Energy Summit - MarketWatch

Value Investing#39;s a No-Go for Now - TheStreet.com

The Wallet covers the latest personal finance and investing news ... - Wall Street Journal Blogs

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/9i-0fd=Rurl=http://blogs.wsj.com/wallet/2008/10/06/loose-change-10608/%3Fmod%3Dgooglenews_wsjcid=0ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNHcy8TxLArrwfPwRFJrXM5FpSfwOAimg src=http://news.google.com/news?imgefp=PCL2sx5_GbIJimgurl=s.wsj.net/media/super_art_200v_20081006093527.jpg width=56 height=80 alt= border=1brfont size=-2Wall Street Journal Blogs/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/9-0fd=Rurl=http://blogs.wsj.com/wallet/2008/10/06/loose-change-10608/%3Fmod%3Dgooglenews_wsjcid=0ei=AwTrSKC7LJnK8ATsyqn6CAusg=AFQjCNHcy8TxLArrwfPwRFJrXM5FpSfwOAThe Wallet covers the latest personal finance and binvesting/b news b.../b/abrfont size=-1font color=#6f6f6fWall Street Journal Blogs,nbsp;NYnbsp;-/font nobr16 hours ago/nobr/fontbrfont size=-1b.../b consumers offer up more and more valuable goods to shops. [NPR] -A new type of binvestment/b is gaining muscle in the global economy - comic art. [Portfolio]/font/div/font/td/tr/table

Investing - Google News

RELATED ARTICLES

5 Day Trading Tips for Success
1. How to Treat Gap Openings A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open".

The American Age of Inflation is Over
"The American Age of Inflation is finished." So says economist Robert Samuelson in his December 2nd Washington Post column.

Trading Tips No 3: Online Trading and Investing: Buy, Hold, and Hope
So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge.

Inflation Proof Your Investment Portfolio with ETF's
Even though inflation has been relatively quiet in the U.S.

Stock Market Retirement Investment Plan
For a successful retirement investment plan to work in the stock market, some 'reasonably sure' assumptions would have to be made:The retirement investment plan must take into consideration the one prevailing constant in any stock market security - risk and uncertainty. Understanding that risk and uncertainty are the key factors that propels the return on investment in the stock market far beyond the returns of Passbook Savings Accounts, CD's or Bonds are a start.

Four Key Components To Building A Trading System
Need some insight on what you should really be striving for when you're building a mechanical trading system? When it comes down to it, there are really only a few criteria that are used in judging the merits of a trading system. The most obvious one is profitability - does the system work? But really, there's more to it than just that.

Online Trading Options Strategies - Rolling
Rolling is defined in options online trading as moving a position from one strike to another either vertically in the same month, horizontally to another month or some combination thereof.Other times, you may have to buy your short call back so that you will not lose your stock.

Why Should I Use Penny Shares to Build Wealth?
A strategic question. Why indeed?1.

Success Trading: Some Basic Terminology for New Traders
The world of trading can get very complex because the financial markets are complex. There thousands and thousands of successful traders out there today.

Going Against the Conventional Investment Wisdom
First of all, I want to give everyone the disclaimer that I am not a registered financial advisor and I don't play one on TV. Therefore, I cannot legally provide financial advice and I will not do so.

Beginning Investor - Investment Terms
Over the course of the past two months, readers have brought to my attention that there is a steep learning curve for investment terminology. That's why the focus of this month's Beginning Investor column will be investment terminology.

Seven Investment Terms Everyone Should Know
For those who have never given their financial future a second thought, the term "Financial Planning" could be a scary one. Investments can be a smart way to invest money for your future, but it can be confusing for those who have no experience in the financial business.

Shareholders Meeting Changing With Times
A significant number of corporations that settled accounts in the past year are ready to hold their annual shareholders meetings.In this year's meetings, more than 300 companies plan as their main focus of attention defense measures against hostile takeover bids.

Begging Your Trust in Africa
The syntax is tortured, the grammar mutilated, but the message - sent by snail mail, telex, fax, or e-mail - is coherent: an African bigwig or his heirs wish to transfer funds amassed in years of graft and venality to a safe bank account in the West. They seek the recipient's permission to make use of his or her inconspicuous services for a percentage of the loot - usually many millions of dollars.

Investing in Car Dealerships: Doing Your Homework
This article attempts to help give the investor a broader basis upon which to decide whether a dealership merits their time, money and attention.Interviewing Factories and Financial InstitutionsLenders have an affirmative duty not to promiscuously disclose the financial condition of their debtors.

The Convertible Craze Brightens The Future Of Equities
Convertibles are stealing the show with their safe investment image in today's "protective" market. They seem to be overshadowing the stocks and bonds, and this holds true for the mediocre issuers.

It's Never too Early to Start Investing!
Remember the old saying, "never too late to start"? Well, try this on for size: when it comes to investing, it's never too early to start. Time really is of the essence here.

Planning Starts with the Basics
When developing a plan for your finances, the toughest question often is: "Where do I begin?" Before investing in stocks and bonds or buying life insurance, before implementing any change or making any decisions, you first need to analyze and understand your entire financial picture. Two documents allow you to do just that.

Chinas Great Missed Opportunity
While a U.S.

Retirement - Its Sooner Than You Think!! (Honestly)
Many people hear "retirement" and think- what? 401K? Roth vs. Traditional IRA? Stocks, bonds, mutual funds? Do they?Or do many people put money away according to the suggested amount and then simply hope that when retirement comes all will work out?One report I read estimated that 66 million Americans have put away a Whopping $0 towards retirement.