Amanda Stanhaus

Tag: stock market

Alpha

A number that measures the performance of an investment compared to a benchmark, like the stock market index.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Basis Point

3% change is 300 basis points.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Bear Market

This is not the selling of a nude animal. It’s a falling market that makes investors growl.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Benchmark

Like the pretty girl in the room that everyone judges herself against, this standard can be applied to the performances of securitiesmutual funds and investment managers.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Beta

A number that represents how much a share price moves compared to a market’s movement.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Broker

A person who sells and buys stocks on behalf of another person.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Buy Side

The big boys (and girls) who research and buy large portions of securities for mutual funds, pension funds and insurance firms.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Capital Gain Distribution

mutual fund  spreads the wealth by sharing the capital gains with shareholders. Another thing to report to the tax man!

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Why am I buying Twitter?

image

Why am I buying Twitter?

To be a shareholder, just like Jack Dorsey. He’s dreamy! Hopefully, our paths will cross at the next shareholder meeting.

Yes, I’m a value investor.

Yes, tech start-ups, such as Twitter, are not traditionally thought of as value investments.

And yes, even Dr. Aswath Damodaran’s evaluation of Twitter leads me to understand the current price is inflated—the exact opposite time to buy according to the value investing definition.

But, as Dr. Aswath Damodaran concedes himself, accounting balance sheets are completely useless for young firms, especially tech firms. Financial services industry, let’s fix this! I want to be able to tell from the start, whether a start-up will become a Google or not.

Shouldn’t it be worth something that hundreds of millions document their every move/thought on Twitter? Not to mention, Twitter facilitated a revolution!

I’m buying one—just one—share of Twitter, so I can attend a shareholder meeting and meet Jack.

His twitter feed is the best, duh. I really like his shirts. And, after reading this New Yorker article about Jack, I know we would be the best of friends!

Jack is democratizing payments with Square. I am democratizing financial literacy with my blog.

Can’t wait to chat, Jack!

image

(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

Contrarian

Buy when everyone is selling, sell when everyone in buying.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)