Finance Definitions

We here at MomVesting continue our simple approach to the basics of all things investing. For this go-around, it's the IPO's turn. Not to be confused with the Intellectual Property Office or the International Psycho-Oncology Society, this IPO definitely has a place in the financial and investing world.

According To Webster

When I finally decided to invest in stocks, I was a little intimidated by the whole process. I envisioned a Hollywood version of Wall Street portrayed in “Boiler Room”: you know, where Vin Diesel pressures a doctor to buy 2000 shares of a crappy stock through some trickery. I didn’t want to be in the same boat (of the trickery, not of speaking with Vin Diesel…), so I did a little research first, beginning with what an order on the stock market actually is and how it works. Join me for my findings!


As we continue our finance definitions series, we come across the term “Global Stock Market.” Although the basic definition may be a little obvious (it means the stock market on a worldwide scale), the actual ins and outs of trading on the global market are a little different. Let’s look at everything that makes up the global market.

The Global Market in a Nutshell

Upon first glance at the term "fractional shares," you may think it has something to do with the universal sharing phase of children. You know, the phase when they will only share some of the time (or "fractionally").

While this is true in the world of moms, though, fractional shares actually have an entirely different meaning in the world of finance. Let's take a gander at this term.

According to Webster . . .

What do you do if you believe in real estate investments but don't want to purchase an entire house? You could buy a condo. Or purchase an investment home with your brother. Or you could invest even smaller into an REIT. Not familiar with this security? Well let's take a look.

A Real Estate Investment Solution

An REIT is a real estate investment trust. Instead of being invested in stocks and bonds, you invest in real estate, real estate mortgages and construction loans. Basically, you are investing in corporations and trusts in the real estate industry.

As we continue to define finance terms, we come to a term that is tossed around a lot lately: volatility. Generally, when something is volatile, it means that it is unstable and could at any moment take off in one direction or another.

The measure of volatility in finance is similar: it measures how much a stock is expected to vary over a period of time. But it is also a little more complex than that, so let’s look at everything that is involved.

Have you ever wished there was a stock market crystal ball? Or a stock palm reader? Or anything that you could use to forecast the stock market? Unfortunately, there is not any way to entirely predict the market, but there are some tools that may be able to help.