A comprehensive glossary of investing terms could go on for miles, but here are some basic words you're bound to run into. Learn these words to conquer confusion and impress friends with your thoroughly respectable investing intelligence.Investing terms to know:1.12b-1 fee29.International fund2.Actively managed fund30.Large cap3.Aggressive growth31.Life-cycle fund4.Alpha32.Lifestyle fund5.Asset allocation33.Load6.Balanced fund34.Market capitalization7.Beta35.Midcap8.Blend fund36.Money market funds9.Bond fund37.Moving Average10.Bond38.Mutual funds11.Broker39.Net asset value12.Capital gain40.No-load funds13.Commodity41.Passively managed14.Convertible bond42.Prospectus15.Convertible preferred stock43.Put option16.Core holding44.R-squared17.Correlation45.REITs18.Dividend46.Return19.Diversification47.Risk20.Emerging market fund48.Risk tolerance21.ETFs49.S&P 500 index22.Expense ratio50.Sector (specialty)23.Federal funds rate51.Small cap24.Fund of funds52.Standard deviation25.Growth fund53.Value fund26.Growth stocks54.Value stocks27.Index55.Yield curve28.Index fund56.Yield spread1. 12b-1 fee -- An annual fee deducted from an investor's fund assets to pay for the distribution and marketing costs of the fund. 12b-1 fees are capped by law at 1 percent. advertisement2. Actively managed fund -- A fund that uses a manager or team to analyze securities and try to beat the market return. The opposite of active management is passive management, found in index funds.3. Aggressive growth -- This is an investment style of funds that hold positions in potential high-growth companies. Aggressive growth funds have high betas, meaning they tend to be more volatile than the stock market.
A comprehensive glossary of investing terms could go on for miles, but here are some basic words you're bound to run into. Learn these words to conquer confusion and impress friends with your thoroughly respectable investing intelligence.
1. 12b-1 fee -- An annual fee deducted from an investor's fund assets to pay for the distribution and marketing costs of the fund. 12b-1 fees are capped by law at 1 percent.
2. Actively managed fund -- A fund that uses a manager or team to analyze securities and try to beat the market return. The opposite of active management is passive management, found in index funds.
3. Aggressive growth -- This is an investment style of funds that hold positions in potential high-growth companies. Aggressive growth funds have high betas, meaning they tend to be more volatile than the stock market.
