Many of them are just what they sound like and any intelligent person should be able to figure them out.
Many terms as like many other things are often misunderstood and misinterpreted.
Like any craft you have to know the "jargon" to understand how the game works! Blue Chip stocks are stocks of very high value just like poker chips.
Blue poker chips are usually worth the most.
Blue Chip companies are well established money makers but tend to be more expensive than other types of stock.
Junk bond is just another term for a high-yield bond.
These can be risky but if you know how to analyze them properly, can make you plenty of money.
Dividends are what the company pays to all the stockholders at a set time each year.
It could be very low or a decent amount depending on the company, number of shareholders, and profits.
Even if it's just 25 cents if you own a lot of stock in that company for a long term investment, it's a nice little bonus to remind you of the company's value.
These are the most common terms everyone can recognize immediately.
Are they important? Sort of.
You certainly don't want your broker to think you know nothing.
Using familiar terms can help you become more involved and interested in learning about the stock market.
If you hear these terms and you hunger for knowledge on the subject, it might be time to begin your education in the amazing world of the stock market.