The world is full of abbreviations, especially when it comes to investments. For retail investors, the plethora of abbreviations can be overwhelming and for many daunting.
Money.co.uk, a free online comparison service that lets you compare thousands of financial products, wanted to find out which financial abbreviations Americans understand the least, based on which ones they search for the most online.
“Understanding financial terms is of the utmost importance when navigating investments which will no doubt involve numerous documents and contracts,” Salman Haqqi, personal finance expert at money.co.uk, said in a statement.
“Americans’ research shows a desire to expand their knowledge and familiarize themselves with some of the most complex financial terminology, which will allow them to capitalize on investment opportunities.”
Money.co.uk researchers have compiled a starter list of some 300 commonly used financial terms and their abbreviations via trusted online sources including CNBC.com, TheMuse.com, AKG.co.uk and Investors. natwestgroup.com.
They then used Google AdWords, an online analytics tool, to calculate the annual average of US online searches for each individual abbreviation, collecting data on December 1. In addition to the term itself, they considered alternative online search variants of each abbreviation and omitted some. terms due to different search intent.
In one instance, researchers provided the UK definition of an abbreviation, which ThinkAdvisor adjusted to reflect both the US term for that abbreviation and its UK reference.
See the gallery for the 10 investing abbreviations Americans understand the least, judging by what they’ve searched for the most.