Become Fluent in Finance
Learn the language of investing with Emcee
The language of investing is confusing. At Emcee we recognize that the language of finance creates a barrier to entry for new investors. Investing hard-earned money into something as intangible as a stock can be a bewildering and intimidating experience simply due to the complexity of the language involved. Even “Millennial-friendly” investing apps do a poor job of presenting financial data in an approachable way. Take for example how this investing app displays the stats of a stock:
None of the provided stats are explained and some, such as P/E Ratio and Dividend/Yield are not self-explanatory. This leaves novice investors confused and with no idea how to analyze a potential investment. Competitors in the online investment space don’t offer better solutions. Some passive investing apps, in their attempt to explain an ETF, present their users with a dozen more terms they’ll need to Google and attempt to understand if they want to make an informed investment decision. Emcee is addressing this problem by being more than just a passive investing platform — we’re an active learning app that is determined to simplify the language of investing and define investment terms and fundamental investing concepts in simple, approachable terms.
Passive investing apps provide access to “set it and forget it” investments that can be attractive to beginners and some of these apps have even created glossaries of terms for new investors to familiarize themselves with. The problem is there are a lot of omitted terms, some of the definitions are only helpful when applied specifically to the app, the definitions are cluttered with non-pertinent information, and the glossaries are not easy to find within the app.
Thanks to Emcee’s unique portfolio mirroring feature, Emcee users won’t have to know why P/E Ratio matters, but can easily learn on the platform if they choose to. We’ve created an investing lexicon that defines these confusing terms and acronyms to teach beginners how to speak the language of finance. Our definitions teach users by not only defining the term, but also providing insights into why experienced investors and analysts care about the term as it relates to their investments. Here is a sneak peek of the Emcee Investing Dictionary:
Volume — The number of shares traded for an asset during a period of time. Technical Analysts care about volume because a sharp rise in volume is believed to signify future sharp rises or falls in an asset’s price because it reflects increased investor interest in an asset.
Open — The price at which an asset starts on a trading day. Investors care about Open or Opening Price if they want to buy or sell as soon as the market opens.
P/E Ratio — A measure of the dollar value of a single share of a company’s stock relative to the company’s per share earnings. The Price to Earnings Ratio gives investors an idea of how much they are paying for a company’s earning power, the higher the ratio, the more investors are paying and therefore the more earnings growth they are expecting.
Earnings — The post-tax net income of a company. Earnings play a key role in determining the price of shares in a company because they show the profitability of a company compared to projections.
These definitions will be easily accessible in the Emcee app and will always be a free resource for learning how to get started investing. Investing isn’t some convoluted game that only the wealthy get to play — you can start investing on Emcee with just a few dollars. Sign up for our updates so you don’t miss out on the Beta.
