Investing Glossary in Plain English
Every term explained like a friend would — not a textbook. Tap any quest card to unlock the concept, then try it in the simulator.
Asset allocation
How you divide your money between stocks, bonds, cash, and other investments.
Bear market
When markets drop a lot (usually 20%+) and stay down for a while.
Bitcoin
The first and biggest cryptocurrency. Digital money not controlled by any government.
Bond
A loan you give to a company or government that pays you interest. Less risky than stocks.
Bonds
Loans to governments or companies that pay regular interest. The 'safer' part of a portfolio.
Bull market
When markets are rising and people feel good. The opposite of a bear market.
Compounding
When your gains start earning their own gains. The longer you invest, the bigger this effect.
Crypto
Digital currencies like Bitcoin. Highly volatile — only invest what you can afford to lose.
Diversification
Spreading your money across different things so one bad pick doesn't sink you.
Dividend
A small cash payment some companies send to shareholders, usually every 3 months.
Dividends
Regular cash payouts companies send to people who own their shares.
ETF
A basket holding many companies in one. Buying one ETF can give you exposure to hundreds of stocks.
ETFs
Baskets of many investments bundled together. Easy way to spread risk.
Fees
Small costs that quietly eat your returns. Lower fees = more money for you over time.
Index
A list that tracks a group of stocks — like the S&P 500 tracks the 500 biggest US companies.
Inflation
When prices rise over time and your money buys less. Investing helps fight it.
IPO
Initial Public Offering — when a company first sells its shares to the public.
Liquidity
How quickly you can turn an investment into cash without losing value.
Market cap
How big a company is on the stock market — share price × number of shares.
Panic selling
Selling out of fear during a crash — usually right before recovery. Most expensive mistake beginners make.
Portfolio
Everything you own as an investor, all together — your total mix.
Rebalancing
Bringing your portfolio back to its target mix. Done once or twice a year.
Recession
When the economy shrinks for several months. Markets often dip — then recover.
Share
Another word for one unit of stock — one slice of a company.
Shares
Multiple slices of ownership in a company.
Stock
A tiny slice of ownership in a company. If the company grows, your slice can grow too.
Stop loss
An automatic sell order that triggers if a stock falls to a price you set in advance.
Volatility
How wildly a price swings up and down. High volatility = bumpy ride.
Yield
How much income an investment pays you each year, as a % of its price.