Language Matters
"Bagel land?" I would have thought the term had something to do with tennis - as in "That first set I got bageled" (meaning shut out, six games to none). But no. It’s a financial term meaning "zero" - as in "Your stock is heading for bagel land." Hmm. I’m in the middle of the financial industry and even I don’t know all the expressions being bandied about.
This is a much bigger problem for people who only take a casual interest in investing. They’re either utterly lost or completely intimidated, according to an AARP (American Association of Retired Persons) survey. My editor - Suzanne Richardson - e-mailed me an article on the survey. I’m sure it was a furtive plea on her part for me to use less financial jargon in my articles for ETR. She didn’t have to. I hate this lingo. And it bothers me no end to hear that at least half of the 1,200 folks polled by AARP don’t read financial literature because it is too difficult. A majority said they find it easier to read computer instructions than a mutual fund prospectus.
I’m not surprised. And I’d like to do something about it. So I invite you to e-mail me with any question you might have about a financial term you don’t understand. I’ll explain it in ETR, in plain Baltimore language, as best I can.
Let me get the ball rolling with this basic term: Total return. It includes the return you get from the share price of a stock going up or down plus the money you get from any dividends offered. Example: "Since 1972, non-dividend-paying stocks gained an anemic annual return of 2.5 percent on average. But dividend-paying stocks generated total annual returns of 10.9 percent."
So, tell me… what financial lingo is bugging you?
[Ed. Note: Breaking down incomprehensible financial lingo is only one way Andrew Gordon - ETR's Investment Director (who makes his home in Baltimore, MD) - can help improve your investing IQ. With his INCOME financial advisory service, he'll show you the best - and safest - stocks to invest in and profit from. Learn more here.
And be sure to send your financial questions to Andrew at AskETR@ETRFeedback.com. Include your full name and hometown, and he may respond to your question in Early to Rise.]
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Hi,
Please explain the word: countertrade. In which case I can use it?
Regards,
Kim