📖 Beginner Glossary
Every term, explained simply
25 beginner-friendly definitions. Each one: one sentence in plain language, one metaphor, one real example. No jargon.
Basics
The foundations everyone starts with.
Investing
Putting your money to work — usually by buying small pieces of businesses — so it grows over time.
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Saving
Putting money aside in a safe place where it stays available but doesn't grow much.
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Inflation
The slow rise in prices over time — meaning the same money buys you less.
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Compound growth
When growth itself starts to grow — your money earns growth on its growth.
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Interest rate
The price of using money — either what you earn on savings or pay on debt — expressed as a percentage.
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Markets
What's actually being bought and sold.
Stock
A small piece of ownership in a company that you can buy and sell.
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ETF
A basket of many companies in one share — buy one ETF, own a tiny slice of all of them.
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Index fund
A fund that simply copies a list of companies (the index) instead of picking favourites.
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Bond
A loan that you give to a government or company in exchange for interest payments.
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Stock market
A big marketplace where people buy and sell shares of companies.
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Dividend
A share of company profit paid out to shareholders, usually a few times a year.
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Strategy
How smart beginners build a plan.
Portfolio
Everything you own that's invested — your full collection of stocks, ETFs, bonds, and cash.
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Diversification
Spreading your money across many things, so one bad bet doesn't sink you.
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Dollar-cost averaging
Putting in a fixed amount on a regular schedule, no matter what the market is doing.
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Risk
The chance that your investment loses value, especially in the short term.
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Return
How much your investment grew (or shrank) over a period of time.
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Long-term investing
Holding investments for many years — usually 10+ — through ups and downs.
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Emergency fund
A safety net of cash — usually 3-6 months of fixed costs — kept somewhere safe and reachable.
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Time horizon
How long until you need this money — which shapes how much risk you can take.
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Wealth
Tuning and growing your portfolio over time.
Asset allocation
How you split your portfolio across different types of investments — stocks, bonds, cash, etc.
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Rebalancing
Periodically nudging your portfolio back to its intended allocation when parts drift.
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Fees (TER)
The small percentage a fund charges you per year. Often labelled TER (Total Expense Ratio).
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Psychology
The mental game — the real differentiator.
⚠️ Educational only · Never financial advice