Get to know more about Investments



What is investing?

  • Investing is using your money for the hope of making more money.
  • In finance, investment is putting money into an asset with the expectation of capital appreciation, dividends, and/or interest earnings. Most or all forms of investment involve some form of risk, such as investment in equities, property, and even fixed interest securities which are subject, among other things, to inflation risk. It is indispensable for project investors to identify and manage the risks related to the investment.

Type of Investments

  • Stocks/Shares
    The stock of a corporation is partitioned into shares, the total of which must be stated at the time of business formation. Given the total amount of money invested in the business, a share has a certain declared face value, commonly known as the par value of a share.


    A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
  • Mutual Fund
    An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.


    Benefits of mutual funds include diversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment.
  • Bonds
    A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates (after maturity date).


    Bonds and other fixed-income securities play a critical role in an investor's portfolio. Owning bonds helps to diversify a portfolio, as the bond market doesn't rise or fall alongside the stock market. More important, bonds are generally less volatile then stocks, and are usually viewed as a "safer" investment.
  • CD
    A certificate of deposit (CD) is a relatively low-risk debt instrument purchased directly through a commercial bank or savings and loan institution.


    The certificate of deposit indicates that the investor has deposited a sum of money for specified period of time and at a specified rate of interest. CD rates, terms and dollar amounts will vary from institution to institution. CDs are not publicly traded securities. As such, you will not find them traded on any exchange. You can also purchase CDs through a stockbroker. Because brokers have access to CDs from many institutions across the country, investors have more choices in regard to terms and yield. Many brokers do not charge investors a fee for CDs. Instead, they usually receive a commission from the issuing bank. Since brokered CDs are still bank CDs, they are insured by the FDIC (Federal Deposit Insurance Corp). up to $250,000.
  • (EOS) Employee Stock Option
    A stock option granted to specified employees of a company. ESOs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. An employee stock option is slightly different from a regular exchange-traded option because it is not generally traded on an exchange, and there is no put component. Furthermore, employees typically must wait a specified vesting period before being allowed to exercise the option.


    An employee stock option is a financial contract between two parties on the common stock of a company, issued as a form of non-cash compensation.
  • (ESPP) Employee Stock Purchase Plan
    ESPPs allow workers to buy shares of their employers' stock in a simple and convenient manner by using after-tax payroll deductions. They are perhaps the simplest form of stock purchase plan in use today. Outside of the wages and salaries, one common method of compensating employees in today's corporate environment involves the purchase of company stock. The Employee Stock Purchase Plan (ESPP) offers a very straightforward method of allowing employees to participate in the overall profitability of the employer over time.


    An ESPP is a tax efficent means by which employees of a corporation can purchase the corporation's stock, often at a discount.
  • US Savings Bonds
    Savings bonds were created to finance world war 1, and were originally called liberty bonds. In 2002, the treasury department started to gut the savings bond program by lowering interest and closing it’s marketing offices.
  • Money Market
    The money market is used by wide array of participants, from a company raising money by selling commercial paper into the market to an investor purchasing CDs as a safe place to park money in the short term.
  • Market Index
    A stock index or stock market index is a measurement of the value of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.
  • Other
    Futures, Gold, Real state, Forex and Annuity, commodity etc.

Investing Terminology

  • Asset Class
    Asset allocation is the process of spreading your assets across several types of investments to control your potential risk and return. When you allocate your investments, you invest different percentages of your portfolio in asset classes such as large cap, mid cap, small cab, international stocks, domestic/global bonds, cash and unclassified. Quicken displays asset class information, which is downloaded from Value Line. The included asset classes are large cap stocks, small cap stocks, international stocks, domestic bonds, cash & money market, and other. For mutual funds, Quicken downloads an asset class mixture based on the mutual fund holdings. Quicken's Asset Allocation Guide contains information about how these asset classes are defined.
  • Capital Gain
    A capital gain is a profit that results from a disposition of a capital asset, such as stock, mutual fund, bond or real estate, where the amount realized on the disposition exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price. Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price.

    Short-term gain/loss: is the gain/loss one realizes by closing a position one has held for less than one year.
    Long-term gain/loss: is the gain/loss one realizes by closing a position one has held for more than 365 days.
  • Cost Basis
    Cost basis equals the total cost to you for a security you purchased. It includes commissions, fees, and mutual fund loads. It also includes all purchases, even reinvestments of dividends and capital gains distributions. However, it excludes the cost of any shares you've sold or given away. Also, it is reduced in a return-of-capital transaction.
  • Investing Goals
    How are your college savings doing? Identify investing goals and assign a goal to each security you track in Quicken so that you can view your securities by goal in investment reports and the Investment Performance graph. The standard Quicken investing goals are College Fund, Growth, High Risk, Income, and Low Risk. You may want to add additional goals such as Retirement, Down Payment, Renovating, or Medium Risk. You can use goals to designate industry groups (such as technology, energy, or consumer products). You can also creatively set up goals as a way of remembering who suggested that you purchase the security (by using the name of your broker, friend, or co-worker as the goal). Then you can create a report that tells who is giving you the best advice. Set up and manage investing goals using Quicken's Investing Goal List.
  • Investing Lots
    Investment account reflects each lots of security bought date and price. Also the closed lots in details.
  • Market Value
    In Quicken, investment account reflects total market value as it’s balance.

    Market Value = Security value (Number of shares* Latest quotes/Price) + Cash balance
  • What is a Placeholder transaction?
    Quicken enters a placeholder entry if you're missing part of your transaction history. For any given security, if the total number of shares bought or added in your transaction list doesn't equal the number of shares in your account, then Quicken enters a placeholder transaction to make up the difference.


    How does Quicken know I am missing transactions? Every time you download transactions from your brokerage or financial institution, Quicken also downloads holdings information for your account. For example, if your transaction list had 200 shares of Intuit, and you downloaded a buy transaction for 70 more, then in your transaction list the total number of shares of Intuit would be 270. But if during the same download your broker's records say you hold 300 shares of Intuit, then Quicken will add a placeholder to make up for the missing 30 shares.
  • Portfolio
    A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals.


    A portfolio is a collection of investment held by an institution or a private individual.
  • Quotes/Price
    This is the actual price of a security at that moment in time. Most prices of securities that are displayed on various websites are delayed quotes. These quotes are usually delayed from 15 to 20 minutes. Real-time quotes are instantaneous with no delay.
  • Realized Gain
    A gain resulting from selling a security at a price higher than the original purchase price. Realized gain occurs when an asset is disbursed at a level that exceeds its cost of book value. Realized gains from sales are typically taxable income. This is one drawback of turning an unrealized "paper" gain into a realized gain.
  • Security
    A security is a fungible, negotiable instrument representing financial value. Securities are broadly categorized into debt securities (such as banknotes, bond, debentures) and equity securities, e.g., common stocks; and derivative contacts, such as forwards, futures, options and swaps. The company or other entity issuing the security is called the issuer. A country’s regulatory structure determines what qualifies as a security. A country’s regulatory structure determines what qualifies as a security. For example, private investment pools may have some features of securities, but they may not be registered or regulated as such if they meet various restrictions.
  • Short Sale & Cover Short sale
    Short sales is the practice of selling securities or other financial instruments that are not currently owned, and subsequently repurchasing them ("covering"). In the event of an interim price decline, the short seller will profit, since the cost of (re)purchase will be less than the proceeds which were received upon the initial (short) sale. Conversely, the short position will be closed out at a loss in the event that the price of a shorted instrument should rise prior to repurchase. The potential loss on a short sale is theoretically unlimited in the event of an unlimited rise in the price of the instrument, however in practice the short seller will be required to post margin or collateral to cover losses, and any inability to do so on a timely basis would cause its broker or counter-party to liquidate the position. In the securities markets, the seller generally must borrow the securities in order to effect delivery in the short sale. In some cases, the short seller must pay a fee to borrow the securities and must additionally reimburse the lender for cash returns the lender would have received had the securities not been loaned out.
  • Ticker symbol
    A combination of letters that uniquely identifies a security in your Quicken investment portfolio. Often it is an abbreviated version of the company or mutual fund name, for example, INTU for Intuit, or VTSMX for Vanguard Total Stock Market Index. assigned to the security.
  • Unrealized Gain
    A profit that exists on paper, resulting from any type of investment. An unrealized gain is a profitable position that has yet to be cashed in, such as a winning stock position that remains open. A gain becomes realized once the position is closed for a profit.

Related Topics:

Tell me about adding investing accounts
Add a single mutual fund investment account
Tell me about manually entering investment transactions
Find out how my investments are doing

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