Glossary — Y

Let us jump into the world of Y-investment terms!

Yield

Yield is like the interest on your savings account, but for investments! Remember how you earn interest on the money in your savings account? Well, yield is similar, but for investments like stocks, bonds, or funds. Yield is the return on your investment, expressed as a percentage. It is like the profit you earn on your investment, compared to the amount you put in. For example:

• If you invest $100 and earn $5 in a year,
• Your yield is 5% ($5 � $100).

Think of yield like a dividend on your investment! Just like how some companies pay dividends to shareholders, yield is like a dividend on your investment. It is a way to measure how much your investment is earning, and it can help you decide if it is a good investment or not! Higher yield usually means higher return, but also higher risk! Yield vs. Return: What's the Difference? YEAR-TO-DATE (YTD) Year-to-Date (YTD) is actually a simple concept: It's the time from January 1st to today. For example:

• If today is June 15th, YTD is January 1st to June 15th.
• If today is December 31st, YTD is January 1st to December 31st (the whole year!)

YTD helps you track progress, performance, or changes from the start of the year to the current date. Year to Date (YTD): What It Means and How to Use It YIELD-CURVE A yield curve is a graph that shows the relationship between interest rates and the time it takes for an investment to mature (end). For example: Imagine you are an investor who wants to buy oil for delivery at different times in the future. The yield curve for oil would show the price you would pay for oil delivered:

• Today (spot price): $80 per barrel
• In 1 year: $82 per barrel
• In 2 years: $85 per barrel
• In 5 years: $90 per barrel

In this example, the yield curve slopes upward, meaning that the price of oil increases as the delivery date gets farther away. This could indicate that the market expects oil prices to rise over time, maybe due to increasing demand or supply constraints. Keep in mind that this is a simplified example, and real-world yield curves can be more complex and influenced by various factors like geopolitical events, seasonal demand, and global economic trends. Yield Curve: What It Is and How to Use It YEAR-OVER-YEAR (YOY) Year-Over-Year (YOY) compares the data of the current year to the previous year. For example:

• If this year's sales are higher than last year's sales, that is a positive YOY change.
• If this year's profits are lower than last year's profits, that is a negative YOY change.

YOY helps you track progress, growth, or changes over a 1-year period. It's like comparing a snapshot of last year to a snapshot of this year! Year-Over-Year (YOY) growth affects the stock market in a simple way:

• Positive YOY growth (e.g. increased revenue or profits) Investors are happy Stock price tends to go up.
• Negative YOY growth (e.g. decreased revenue or profits) Investors are concerned Stock price tends to go down.

Year-Over-Year (YOY): What It Means, How It's Used in Finance That is a wrap for Y investment terms! Stay tuned for our next post, where we will tackle the Z's of investing! Share this post: Sign up for blog updates! Join my email list to receive updates and information. Email address

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