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The Short Answer

Puzzled by Investing Jargon?

We clear up terms such as margin of safety, risk-free rate of return, and sensitive stocks.

Earlier this year we began asking readers which investment terms are most puzzling to them. The goal was to identify jargon found on financial sites (including Morningstar.com) or in financial statements and shareholder letters that many people just don't understand or don't understand well. Judging by the response, thefinancial-servicesindustry has quite a ways to go when it comes to communicating with individual investors. Readers have submitted scores of terms for us to define--from those covering the most basic investing concepts to others that are more abstract.

You can find our first batch of jargon definitions here and the second batch here. In the months since those articles ran, we've received additional submissions from confused readers asking us to clear up some of the fog. So, as an ongoing public service, let's tackle some more. 

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