TL,DR: Defensive stocks are like lemons, resilient and consistent Defensive Stock / Lemonpopular at all timesthick skinnot subject to seasonal fluctuations in price or popularityEatamology “Defensive” refers to the stock’s performance during an economic downturn. By representing shares in consumer staples and goods that will be consumed no matter what happens, they defend or protect investors against a struggling economy. Also called, recession-proof stocks or non-cyclicals. Financials Unlike...

TL,DR: Defensive stocks are like lemons, resilient and consistent Defensive Stock / Lemonpopular at all timesthick skinnot subject to seasonal fluctuations in price or popularityEatamology “Defensive” refers to the stock’s performance during an economic downturn. By representing shares in consumer staples and goods that will be consumed no matter what happens, they defend or protect investors against a struggling economy. Also called, recession-proof stocks or non-cyclicals. Financials Unlike...

TL,DR: Cyclicals are like strawberries, a seasonal option Cyclical Stock / Strawberryseasonal fruitcan be fresh or foul depending on the time of yearpopular during certain market environmentsEatamology “Cyclical” refers to the rise and fall of the economy. When the value of companies rises, and stock prices subsequently rise as well, we experience an economic boom or an economic expansion. When prices fall, we experience an economic bust, also known as a recession. Cyclical stocks perform wel...

TL,DR: Cyclicals are like strawberries, a seasonal option Cyclical Stock / Strawberryseasonal fruitcan be fresh or foul depending on the time of yearpopular during certain market environmentsEatamology “Cyclical” refers to the rise and fall of the economy. When the value of companies rises, and stock prices subsequently rise as well, we experience an economic boom or an economic expansion. When prices fall, we experience an economic bust, also known as a recession. Cyclical stocks perform wel...

Price to Earnings / Price per Pound A comparison of the cost of a share to the earnings per share. A measure of “bang for your buck”. A food like caviar has a very high P/E, because you pay a lot and get a little. Earnings per Share / Serving Size A comparison of the earnings of a company to the number of shares issued. Whenever you see a price, it’s important to consider the serving size as well to understand the overall value of what you are buying. Beta / Comparative Performance When paper...

Price to Earnings / Price per Pound A comparison of the cost of a share to the earnings per share. A measure of “bang for your buck”. A food like caviar has a very high P/E, because you pay a lot and get a little. Earnings per Share / Serving Size A comparison of the earnings of a company to the number of shares issued. Whenever you see a price, it’s important to consider the serving size as well to understand the overall value of what you are buying. Beta / Comparative Performance When paper...

TL,DR: Like pineapples and coconuts, ADRs are imported ADR / Pineapple & Coconutimported productssold in U.S. dollarspopular and healthyEatamology “ADR” stands for American Depository Receipt. American, because they are sold in the United States using U.S. currency. Depository, because foreign companies deposit shares of their companies into U.S. banks prior to sale. Receipts, because finance people love to use alternative words for products. Financials ADRs represent shares of foreign compan...

TL,DR: Like pineapples and coconuts, ADRs are imported ADR / Pineapple & Coconutimported productssold in U.S. dollarspopular and healthyEatamology “ADR” stands for American Depository Receipt. American, because they are sold in the United States using U.S. currency. Depository, because foreign companies deposit shares of their companies into U.S. banks prior to sale. Receipts, because finance people love to use alternative words for products. Financials ADRs represent shares of foreign compan...

TL,DR: Blue chips are like apples, safe, effective, and fun Blue Chip Stock / Applesafe and healthy productscommonly available and frequently purchasedreasonably priced relative to earningswell known and reputableEatamology “Blue Chip” refers to a relatively expensive and substantial poker chip, typically worth $10, compared to the white chips worth $1 and the red chips at $5. Financials Blue chip stocks represent shares in large stable companies with a track record of success. These stocks a...

TL,DR: Blue chips are like apples, safe, effective, and fun Blue Chip Stock / Applesafe and healthy productscommonly available and frequently purchasedreasonably priced relative to earningswell known and reputableEatamology “Blue Chip” refers to a relatively expensive and substantial poker chip, typically worth $10, compared to the white chips worth $1 and the red chips at $5. Financials Blue chip stocks represent shares in large stable companies with a track record of success. These stocks a...

TL,DR: Like preordering pizza before the big game Futures / Preorderagreement to pay for a specific product at a later date and timeway of guaranteeing price and availabilityEatamology Imagine you are throwing a party for Super Bowl Sunday and know that crowds will overwhelm your local pizza joint. Prices will be through the roof and they will probably run out of pizza. This is where a future can save the day. Simply lock in the deal in advance, and then execute the transaction when the big d...

TL,DR: Like preordering pizza before the big game Futures / Preorderagreement to pay for a specific product at a later date and timeway of guaranteeing price and availabilityEatamology Imagine you are throwing a party for Super Bowl Sunday and know that crowds will overwhelm your local pizza joint. Prices will be through the roof and they will probably run out of pizza. This is where a future can save the day. Simply lock in the deal in advance, and then execute the transaction when the big d...

TL,DR: Like grapes, growth stocks are pricey and sweet Growth Stock / Graperemarkably sweet or sadly sourvery popularEatamology “Growth” refers to the past performance and future expectations of shares in relatively young companies. These stocks are in an expansive phase, where they generally outperform the overall stock market but are at greater risk of failure than the blue chip and index stocks. Financials Growth stocks represent shares in unproven and young companies that typically gain p...

TL,DR: Like grapes, growth stocks are pricey and sweet Growth Stock / Graperemarkably sweet or sadly sourvery popularEatamology “Growth” refers to the past performance and future expectations of shares in relatively young companies. These stocks are in an expansive phase, where they generally outperform the overall stock market but are at greater risk of failure than the blue chip and index stocks. Financials Growth stocks represent shares in unproven and young companies that typically gain p...

TL,DR: Like a bag of clementines, penny stocks are hit or miss Penny Stock / Clementinesunproven and unlikely to be perfect productscarry risk of buying a bad bunchamazing when perfectly ripepurchased in bulkEatamology “Penny” stocks are cheap like a penny, although in reality they count anything trading for less than $1.00/share as a penny stock. Financials Penny stocks represent shares in small unproven companies. They are traded OTC (over the counter) which means major exchanges do not lis...

TL,DR: Like a bag of clementines, penny stocks are hit or miss Penny Stock / Clementinesunproven and unlikely to be perfect productscarry risk of buying a bad bunchamazing when perfectly ripepurchased in bulkEatamology “Penny” stocks are cheap like a penny, although in reality they count anything trading for less than $1.00/share as a penny stock. Financials Penny stocks represent shares in small unproven companies. They are traded OTC (over the counter) which means major exchanges do not lis...

TL,DR: Master basic investing concepts to get started The Unripe Peach / Investment Lifecycle Investments work like an unripe peach. First you buy, then you wait, then you (hopefully) reap the rewards of waiting. The amount you spent to buy the products is called cost basis, calculated as the number of products purchased times the price of each product. If you end up with more money than you put in, this is called a capital gain, and if you end up with less, then you have a capital loss. Toge...

TL,DR: Master basic investing concepts to get started The Unripe Peach / Investment Lifecycle Investments work like an unripe peach. First you buy, then you wait, then you (hopefully) reap the rewards of waiting. The amount you spent to buy the products is called cost basis, calculated as the number of products purchased times the price of each product. If you end up with more money than you put in, this is called a capital gain, and if you end up with less, then you have a capital loss. Toge...

TL,DR: Like strawberry frosted doughnuts, fruity in name only Meme Stocks / Strawberry Frosted Donutcontain no real fruit or nutritional valuevalue comes from appearance rather than substancedelicious at first but might make you sick Eatamology “Reddit” or “Meme” stocks are shares in companies popularized via online communities like Reddit, including the most popular Reddit thread, WallStreetBets, where individual investors go for advice. Hype received on Reddit can bolster a stocks value, de...

TL,DR: Like strawberry frosted doughnuts, fruity in name only Meme Stocks / Strawberry Frosted Donutcontain no real fruit or nutritional valuevalue comes from appearance rather than substancedelicious at first but might make you sick Eatamology “Reddit” or “Meme” stocks are shares in companies popularized via online communities like Reddit, including the most popular Reddit thread, WallStreetBets, where individual investors go for advice. Hype received on Reddit can bolster a stocks value, de...

TL,DR: Common stocks offer less insurance in exchange for voting power Common Stock / Raw Fruitstandard and basicbuyer has control over the productlacks protections and assurancesPreferred Stock / Prepared Fruitluxury itempackaged and ready for low effort consumptionincludes protections and assurances“Eatamology” “Common” stocks represent the most basic type of shares available and do not contain frills or special circumstances. “Preferred” stocks are named for the perks, including preferenti...

TL,DR: Common stocks offer less insurance in exchange for voting power Common Stock / Raw Fruitstandard and basicbuyer has control over the productlacks protections and assurancesPreferred Stock / Prepared Fruitluxury itempackaged and ready for low effort consumptionincludes protections and assurances“Eatamology” “Common” stocks represent the most basic type of shares available and do not contain frills or special circumstances. “Preferred” stocks are named for the perks, including preferenti...

TL,DR: Dividends, like leftovers, are pleasant result of surplus Dividends / Leftoversexcess product or profitfactored into the product valuenot always availableEatamology From the Latin “dividendum” which translates to divisible item, dividends represent leftover profits that can be split up between shareholders. Financials When a company has paid its expenses and has leftover profits, it can choose to reinvest the money in research and development (R&D), new equipment, or other internal inv...

TL,DR: Dividends, like leftovers, are pleasant result of surplus Dividends / Leftoversexcess product or profitfactored into the product valuenot always availableEatamology From the Latin “dividendum” which translates to divisible item, dividends represent leftover profits that can be split up between shareholders. Financials When a company has paid its expenses and has leftover profits, it can choose to reinvest the money in research and development (R&D), new equipment, or other internal inv...