Plain-English glossary

Beginner investing terms without the jargon.

A simple reference for the investing words beginners meet first. Use this page when a term stops you mid-sentence.

Share

A small piece of ownership in a company.

Fund

A basket of investments managed together, which can reduce reliance on one company.

ETF

An exchange-traded fund, which is a fund that can be bought and sold on a stock exchange.

Stocks and Shares ISA

A UK account that can hold investments with certain tax advantages, subject to rules and limits.

Diversification

Spreading money across different investments so one poor result does not carry everything.

Compound growth

Growth on top of previous growth. Over long periods, this can become powerful.

Risk

The chance that results are different from what you hoped for, including losing money.

Volatility

How much an investment moves up and down in price over time.

Platform

An online service where you can open accounts and buy investments.