How to Become Fluent in The Language of Finance
Learn the language of finance and investing without losing your mind
May 6, 2023
The language of finance is confusing. Investing hard-earned money into something as intangible as stocks can be a bewildering and intimidating experience simply due to the complexity of the language. At Bits of Stock, we recognize this presents a barrier to entry for new investors. Even “Millennial-friendly” investing apps do a poor job of presenting financial data in an approachable way. Take for example how this investing app display stats of a stock:
None of the stats are explained and some, such as P/E Ratio and Dividend/Yield are not self-explanatory. This leaves novice investors confused, with no idea how to analyze a potential investment opportunity. Competitors in the online investment space don’t offer better solutions. Some passive investing apps, in their attempt to explain an Exchange-Traded Fund (ETF), present users with a dozen more terms that require Google in order to make an informed investment decision. Bits is addressing this problem by being more than just a passive investing platform — we’re an active learning app that is determined to simplify the language of investing and define fundamental investing concepts in simple, approachable terms.
Passive investing apps have pioneered “set it and forget it” investment schemes that can be attractive for beginners and even contain glossaries of terms to familiarize themselves. The problem is there are a lot of omitted terms, some definitions are only helpful when applied specifically to the app and cluttered with non-pertinent information, and the glossaries are not easy to find within the app.
Example of online investing app glossary
We are creating an investing lexicon that defines these confusing terms and acronyms to teach beginners how to speak the language of finance. Our definitions teach users not only the meaning of terms but also provide insights into why experienced investors and analysts care about these terms as it relates to their investments. Here is a sneak peek of the Bits Investing Dictionary:
These definitions will be easily accessible in the Bits app and a free resource for learning how to get started with investing. Investing isn’t some convoluted game that only the wealthy can play — you can start investing on Bits with just a few dollars. Matter of fact, we can help you get started. Sign up for Bits below and when you refer a friend to join, you receive $5 in free stock with participating brands (Amazon, eBay, Marriott, Target, etc.).