Most of the times, you will notice brokers and investors using certain investing terms to communicate with each other. If you are a novice, you will have a hard time understanding these terms. But once you start the journey of investment, you will get acquainted with various terms and definitions that are frequently used in the investing world.

In the world of stocks and real-estate investments, convertible bonds are less talked about. Common investors hardly know about convertible bonds, and very few investors of this class deal in bonds. By contrast, companies are always looking for ways to raise capital, and issuing convertible bonds is one such way.

Property investing is one of the most important and crucial decisions of one’s life. Home financing rates have dipped, and there are many investment opportunities in property. Those considering buying their dream house must have many things in place, such as mortgage plans, property tax, dwindling interest rates, credit history, and other endless paperwork.

Of the three types of income recognized by IRS (Internal Revenue Service), passive income is the income resulting from cash flows received on a regular basis. Passive income can be derived from renting property or dividends from any investment. Taxes are levied on passive income. Creating passive income is a no-brainer.

Generally, an investor purchases equity stocks through an online brokerage firm or directly from a broker. However, some investors in order to save brokerage fees, purchase stocks directly from the company. Buying stocks directly from the company is called a direct investment plan. Investors have their own reason for investing directly in a company such as physical possession of the stocks, eliminating brokerage services or broker, low cost, and various other reasons.

401 (k) is a retirement program initiated by the government but sponsored by one’s employer. It can be referred to as a voluntary contribution from an employee’s paycheck before the taxes are deducted. 401 (k) allows an employee to save for retirement and invest the money contributed by one’s employer.