5 Investing Terms Every Beginner Should Know

5 Investing Terms Every Beginner Should Know (Explained simply) Stock 🧩📈 Stock = ownership in a company When you buy a stock, you're literally buying a piece of that company. EXAMPLE: Buying Apple Stock = you own part of Apple 🍎 If the company grows -> your investment can grow too. ETF (Exchange-Traded Fund) ETF = A bundle of many stocks Instead of choosing 1 company, you get 100+ in one click. Safer. Easier. Smarter for beginners. Ex: Buy 1 ETF -> Own Apple, Google, Nike, and more. EX. VFV, VOO, XEQT HALAL: SPUS, HLAL Diversification 🧺 Diversification = Not putting all your eggs in one basket If 1 stock drops, others can balance it out. It's how investors protect their money. Example: You could split it like this: • $400 in an S&P 500 ETF • $300 in a Tech ETF • $300 in individual stocks Less risk. Smoother growth over time. Dividends 📮💰 Dividends = Free money for holding certain stocks Some companies reward shareholders with cash every few months. Ex. If a stock pays a 3% dividend $1,000 invested -> $30 per year (Often paid quarterly) Market Cap 📈 💰 Market Cap = Company's total value. It's the stock price x total number of shares. Market cap tells you how "big" a company is in the market. Example: Google's Market Cap ≈ $3 Trillion That means the total value of all its shares combined is $3T. Market cap helps investors understand risk & growth potential. You can see my full stock portfolio in my bio 🙏🏽⬇️ ~ Follow For Part 2 ~