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Investing 101 + Reasons To Use Bloom - Investing app for teens.

Terms in this set (26)

Stock/Share
a piece of ownership in a corporation. (Traded on the stock market and a slice of a company's equity)
Stock Market
Collection of exchanges where people trade (buy and sell) stocks.
Liabilities
Expenses a company has to pay back
Assets
money and other valuables belonging to an individual or business | Equity + Liabilities
Equity
Assets - Liabilities. Ownership chunks of companies
Backed By Y Combinator
Bloom is backed by Y Combinator, the incubator that launched Coinbase, AirBnB, DoorDash, Stripe and countless other tech giants.
Gen Z Led
Bloom is mission-driven and led by Gen Z. We're tired of boomers taking advantage of young people.
Minor Support
Custodial accounts give teens the ability to invest legally
Fractional Investing
To power to diversify by allowing investments as little as $1. Helpful for stocks with a $3k+ share price.
Comission-free
The ability to trade without brokerage fees.
Market Cap
Total worth of the company in terms of the stock market.
Broker Dealer
A financial intermediary (often a company) that may function as a principal (dealer) or as an agent (broker) depending on the type of trade.
Opening & Closing
When stock markets enable people to make trades. Typically 9:30am-4pm in local time for each stock market.
Dividend
Stocks that offer regular (often annual) payouts for owning the stock. (This way you do not need to sell your shares to make a profit. Popular dividend companies include: Apple, Pfizer, IBM)
Investment Indexes/ETFs
A group of stocks that fit a certain criteria. (Examples: S&P500 is the top 500 US companies)
P/E Ratio
Ratio of stock price to earnings per share (Frequently used to determine if a stock is overvalued)
Risk vs. Return
The greater the risk, the greater the possible return ($).
IPO/Going Public
(Initial Public Offering) When a private company opens the sale and ownership of its stocks to the public. Only companies that have IPO'd are have stocks tradable on the market.
Alpha
Greater return of your stocks in comparison to a benchmark (often a market average)
Beta
Risk of your stock or investment in comparison to a benchmark
Appreciation
Asset increase overtime.
Depreciation
Asset decrease overtime.
Bearish
Causing, expecting or describing declining stock prices and performance
Bullish
Causing, expecting or describing rising stock prices and performance
Diversification
Investing money in different industries, asset types and companies with a goal to mitigate risk.
Security
A security is a financial asset such as a stock, bond, or option, that can be traded on the stock market.
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