Explain it to me like I’m 5
The writer Samuel Johnson once said:
“He is a benefactor of mankind who contracts the great
rules of life into short sentences, that may be easily impressed on the memory, and so recur habitually to the mind.”
He was so right.
It is far easier to understand and remember a thing if it is explained in simple terms. This is especially the case in more complicated fields like math, physics, and finance. The simpler the explanation, the better the understanding and memory of it.
Investing is a field that people tend to over complicate. It’s filled with abstract technical words like “securities” and “shorts” that scare people away. But, as with any subject, things will be easier to understand when we break them down into simple explanations. Here are 21 investing words, each explained in one simple sentence.