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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