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Technical-ese
The stock market has a language all its own—street talk. Terms like zero-coupon bonds, net asset values, and price/earnings ratios are absolutely guaranteed to draw a blank look from the average person on the street. This shouldn’t be surprising. Every trade, sport, and craft has a certain number of terms or phrases that are unique to it. And, since language is created by need, specific terms have arisen in each sphere to address this need for description.
TIP
To deal with the fear of technical-ese, or the terminology used in the financial community, keep in mind that as a beginning investor your need for learning these terms is limited.
The terminology used in some areas, in sports for example, is familiar to almost everyone. Most people know what a seventh-inning stretch, a free throw, and a touchdown are even if they’ve never played or attended a game in their lives. However, in other areas, such as law and medicine, the terminology seems confusing and technical, leading to the general consensus that much schooling and substantial intellectual ability are required to understand any of it.
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