Investment Definitions

Let’s take a little break from intense stock definitions to focus on the simplicity of a good ol’ finance definition: the commodity. Although this term is used in stocks as well as in general finance, it’s really an easy term that can be used to further your education on both stocks and finance. So let’s jump right in!

What is a Commodity?

On our trek through finance definitions, we cannot bypass a major influencing factor: economic cycles. These cycles have occurred since our economy began, and they are expected to continue well into the future. So let's take a closer look at economic cycles, at how they affect you and at what to do about them.

What are Economic Cycles?

MomVesting continues our path to imparting financial knowledge in our definitions series, and today’s post is about real time trades. This definition is actually one of the simpler stock definitions. However, despite its simplicity, there are a few things about real time trading to keep in mind. For that reason, we’ll cover real time trades in depth.

What’s the Real Time 411?

As we continue our definitions series with an in-depth look at the terms on stock balance sheets, we come to the definitions that comprise the asset turnover ratios. These include receivables turnover, inventory turnover, fixed assets turnover, and the average collection period. This long list of definitions may seem intimidating, but the asset turnover ratio definitions aren't so bad. Let's take a closer look at them.

Asset Turnover Ratios

When beginning to invest in the stock market, there are a ton of terms to wade through before you can even begin to make a decision on which company is the best fit for your investing needs. Thankfully, even though these financial terms may seem intimidating, they really aren't all that difficult to understand. Let's take a look at one of them: Return on Equity.

Return on Equity

Moving forward in our definitions series, we once again look at a stock definition: return on assets. This measurement, found in your stock of choice's financial ratios page, tells you a lot about the profit of the company. Let's look at this ratio a little closer.

Return on Assets Overview

As we continue our investment definitions series, we come to Automatic Investment Plans (AIP). Just like it sounds, this type of investment plan works on the basis of using automatic withdrawals to invest in a retirement account, mutual funds or stocks. One of the more common places that an AIP occurs is through the workplace, where contributing to a 401(k) offered by your employer can be easily accomplished through a paycheck deduction. Automatic Investment Plans can also occur in other situations, though, so let's look a little more closely at this new investment term.

When I first started investing in a 401(k), I was really confused by all of the options. Growth, aggressive growth, equity income, balanced…argh! I didn’t know the difference between any of them, and I had to make a choice fast. Thankfully, understanding the investment models in a 401(k) does not have to be as difficult as it first appears. Let’s take a look at the many different types of models.

What is an Allocation Model

When beginning to invest, terms like Cyclical Industry Investing can be a little off-putting to the unseasoned investor. However, the big term is not actually as difficult to understand as it may seem at first glance. Let’s take a look a little more closely at cyclical industry investing.

What is a Cyclical Industry?

When first investing in the stock market, there are many new financial terms. So many, in fact, that sorting through all of the new-to-you definitions can seem more than a little daunting. However, with a little time and determination, you can begin to discover exactly what some of these terms mean and how they can apply to your stock research and purchase plans. Let’s look at one of these definitions: the Interest Coverage Ratio.

What is Interest Coverage Ratio?