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Common Investor Terms for the Beginners

Understandinginvestor terms are important for everyone involving in the business, especially the beginners. The business of investment is not something to take for granted. It takes serious money to make the business and it will have serious result as well. To help you out, here are some of the most common terms about investment business that everyone should know.

The first term here is Payback Time. This term is one of the most common investor terms everyone often used in the business. What does payback time mean? The term means the amount of time for the investor to get his entire money back. In average, the amount of time before an investor get the return of his money is around eight years. If the investment is in bigger-scale business or companies, it should take shorter amount of time to enjoy the result of the investment.

The next term is Blue Chip. When you are about to make the investment, the term is going to be herd quite a lot of time. Blue Chip here means a low-risk investment. Investors love this kind of investment because it can gain them more profit with less risk. The term is often used to describe investments in well-established companies with million dollar profit annually. The term comes from poker game where the blue chip in the game is essentially the most valuable chip of all.

Now that you know some of the best terms in the business of investment, you can learn more about it before making a real investment. This business is not to take for granted and not to play around with. This is a serious business that has to be done and examined very carefully. Only that way, you will get the profit. Learn about other common investor terms to keep up with the business. 

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