Glossary
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The stock market and trading in general is full of a heap of jargon and terms you may not have heard before. Below is just a general list of share related terms that you might encounter on this site or during your own trading. Hope it’s useful.
200 Day MA: 200-Day Moving Average – The average of a stock’s closing prices over the past 200 trading days.
50 Day MA: 50-Day Moving Average – The average of a stock’s closing prices over the past 50 trading days.
52 Week High: The highest price a stock has reached during the past 52 weeks.
52 Week Low: The lowest price a stock has reached during the past 52 weeks.
Address Data: Information about a company’s address, including street, city, and country.
After-Hours Trading: Trading of stocks that occurs outside of regular trading hours, typically through electronic communication networks (ECNs).
American Depository Receipt (ADR): A negotiable certificate representing a specified number of shares in a foreign stock, traded on a US stock exchange.
Analyst: A financial professional who researches and analyzes companies, industries, and economic trends to provide investment recommendations.
Annual Report: A yearly document published by a publicly traded company, providing financial information and updates on its performance, operations, and future plans.
Annual: Refers to financial data or events that occur once per year.
Appreciation: An increase in the value of an asset over time.
Arbitrage: Taking advantage of price differences between two or more markets by simultaneously buying in one and selling in the other.
Ask: The lowest price a seller is willing to accept for a security.
Asset Allocation: The process of dividing investments among various asset classes, such as stocks, bonds, and cash, to achieve a desired balance of risk and reward.
At-the-Money (ATM): An option whose strike price is equal to or very close to the current market price of the underlying security.
Auction Market: A market in which buyers and sellers enter competitive bids and offers simultaneously, with prices determined by supply and demand.
Authorized Shares: The maximum number of shares a company is allowed to issue, as specified in its articles of incorporation.
Averaging Down: Buying more shares of a stock when the price has fallen, thereby lowering your average purchase price.
Balance Sheet: A financial statement that shows a company’s assets, liabilities, and shareholder equity at a specific point in time.
Bear Market: A market characterized by declining prices, usually lasting for an extended period of time.
Beta: A measure of a stock’s volatility in relation to the overall market, used to gauge risk.
Bid: The highest price a buyer is willing to pay for a security.
Bid-Ask Spread: The difference between the highest bid price and the lowest ask price for a security.
Blue Chip Stock: Shares of a large, well-established, and financially stable company with a solid history of stable earnings and dividends.
Bollinger Bands: A technical analysis tool that uses a moving average and standard deviations to identify potential overbought or oversold conditions in a security’s price.
Book Value: The net asset value of a company, calculated by subtracting total liabilities from total assets.
Breakout: A technical analysis term used to describe a security’s price movement above a resistance level or below a support level.
Broker: A person or firm that buys and sells securities on behalf of clients, usually for a fee or commission.
Bull Market: A market characterized by rising prices, usually lasting for an extended period of time.
Buy-and-Hold: An investment strategy where an investor purchases stocks and holds them for a long period, regardless of market fluctuations.
Buyback: A company’s repurchase of its own shares, often to reduce the number of outstanding shares and increase the value of remaining shares.
Call Option: A financial contract giving the holder the right, but not the obligation, to buy a security at a specified price before a certain date.
Capital Gain: The profit made from the sale of a security or investment when the selling price is higher than the purchase price.
Capital Loss: The loss incurred when the selling price of a security or investment is lower than the purchase price.
Capitalization: The total market value of a company’s outstanding shares, calculated by multiplying the current stock price by the number of outstanding shares.
Cash Flow: The net amount of cash and cash equivalents moving in and out of a business.
CIK: Central Index Key – A unique identifier assigned by the SEC for companies and individuals that file with the SEC.
Code: A unique identifier or symbol used to represent a stock, currency, or other financial instrument.
Commission: A fee charged by a broker for executing a trade on behalf of a client.
Commodity: A basic good, such as oil, gold, or wheat, that is traded on a commodities exchange.
Common Stock: A type of equity ownership in a corporation, which entitles shareholders to a portion of the company’s profits and a vote at shareholder meetings.
Convertible Security: A type of investment that can be converted into another form of security, such as a bond that can be converted into shares of stock.
Cost Basis: The original value of an investment, including purchase price and any related expenses, used to determine capital gains or losses.
Country ISO: A two-letter code used to identify a country, based on the ISO 3166-1 standard.
Country Name: The full name of a country.
Covered Call: An options strategy where an investor sells call options while holding an equivalent number of shares in the underlying security, aiming to generate income from the option premiums.
Credit Rating: An assessment of a borrower’s creditworthiness, typically provided by credit rating agencies, which helps determine the likelihood of default on debt.
Cumulative Dividend: A type of preferred stock dividend that accumulates if it’s not paid on time, and must be paid before any dividends are paid to common stockholders.
Currency Code: A three-letter code used to identify a currency, based on the ISO 4217 standard.
Currency Name: The full name of a currency.
Currency Symbol: A symbol used to represent a particular currency, such as “$” for US dollars.
CUSIP: Committee on Uniform Securities Identification Procedures – A unique identifier assigned to financial instruments in the United States and Canada.
Day Trading: The practice of buying and selling securities within the same trading day, with the goal of profiting from short-term price movements.
Debenture: A type of unsecured debt issued by a company, backed by the general creditworthiness and reputation of the issuer, rather than specific assets.
Debt-to-Equity Ratio: A financial metric used to evaluate a company’s financial leverage, calculated by dividing total liabilities by total shareholders’ equity.
Defensive Stock: A stock from a company with stable earnings and dividends, typically less affected by economic downturns due to the nature of its business, such as utilities or consumer staples.
Delisting: The removal of a security from a stock exchange, which can occur for various reasons, such as failing to meet listing requirements or going private.
Derivative: A financial contract whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies.
Description: A brief overview of a company or financial instrument.
Diluted Eps TTM: Diluted Earnings Per Share Trailing Twelve Months – A company’s earnings per share calculated using fully diluted outstanding shares over the past 12 months.
Dividend Date: The date on which a company pays dividends to its shareholders.
Dividend Share: The amount of dividends paid per share of stock.
Dividend Yield: A financial ratio that shows the annual dividend income per share relative to the stock’s price, calculated by dividing the annual dividend by the stock price.
Dividend: A payment made by a company to its shareholders, usually in the form of cash or additional shares, as a distribution of a portion of its earnings.
Dollar-Cost Averaging: An investment strategy where an investor consistently invests a fixed amount of money at regular intervals, regardless of market fluctuations, aiming to reduce the impact of market volatility.
Double Bottom: A technical analysis chart pattern that indicates a potential trend reversal, characterized by two consecutive price declines to a similar level, followed by a rebound.
Double Top: A technical analysis chart pattern that suggests a potential trend reversal, characterized by two consecutive price increases to a similar level, followed by a decline.
DOW: Dow Jones Industrial Average – A stock market index that tracks the performance of 30 large, publicly traded companies in the United States.
Downgrade: A negative change in a security’s rating, typically issued by a rating agency or analyst, often leading to a decrease in the security’s price.
Due Diligence: A comprehensive appraisal and analysis of a potential investment or business deal, conducted to evaluate the risks and rewards before making a decision.
Earnings per Share (EPS): A financial metric calculated by dividing a company’s net income by the number of its outstanding shares, used to measure a company’s profitability on a per-share basis.
Earnings Share: Earnings per share, calculated as a company’s net income divided by the number of outstanding shares.
Earnings Yield: A financial ratio that shows the earnings per share relative to the stock’s price, calculated by dividing the earnings per share by the stock price, often used to compare the earnings potential of different investments.
Earnings: The net income of a company, typically reported on a quarterly or annual basis, which represents the company’s profitability.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization – A measure of a company’s operating performance that excludes non-operating items.
Economic Indicator: A statistic or data point that provides information about the overall health and direction of an economy, such as unemployment rate, inflation rate, or gross domestic product (GDP).
Efficient Market Hypothesis (EMH): A financial theory that suggests that stock prices fully reflect all available information, making it difficult for investors to consistently achieve above-average returns through stock picking or market timing.
Enterprise Value Ebitda: The ratio of a company’s enterprise value to its EBITDA, used to measure the value of a company relative to its earnings.
Enterprise Value Revenue: The ratio of a company’s enterprise value to its revenue, used to measure the value of a company relative to its sales.
Enterprise Value: The total value of a company, including its market capitalization, debt, and cash.
EPS Estimate Current Quarter: The estimated earnings per share for the current quarter.
EPS Estimate Current Year: The estimated earnings per share for the current fiscal year.
EPS Estimate Next Quarter: The estimated earnings per share for the next quarter.
EPS Estimate Next Year: The estimated earnings per share for the next fiscal year.
Equity: The ownership interest in a company, represented by shares of stock, or the residual interest in a company’s assets after subtracting its liabilities.
Ex Dividend Date: The date on which a stock begins trading without the right to receive the most recently declared dividend. Investors who purchase the stock on or after this date will not receive the dividend.
Exchange: The financial market where securities, such as stocks and bonds, are bought and sold.
Exchange-Traded Fund (ETF): An investment fund that holds a diversified basket of securities, such as stocks or bonds, and is traded on a stock exchange like an individual stock.
Ex-Dividend Date: The date on or after which a stock is traded without the right to receive a declared dividend, typically resulting in a decrease in the stock’s price by the amount of the dividend.
Execution: The process of completing a buy or sell order for a security, usually facilitated by a broker.
Fair Market Value: The price at which a security or asset would change hands between a willing buyer and seller, given that both parties have full knowledge of the relevant facts and are not under pressure to make the transaction.
Financial Statement: A formal record of a company’s financial activities, usually including a balance sheet, income statement, and cash flow statement, which provides information about the company’s financial health and performance.
Financials: A term referring to a company’s financial statements, which include the balance sheet, income statement, and cash flow statement.
Fiscal Year: A 12-month period used by a company for accounting and financial reporting purposes, which may or may not align with the calendar year.
Floating Stock: The number of a company’s outstanding shares that are available for trading in the open market, excluding shares held by insiders and major shareholders.
Forward Annual Dividend Rate: The projected annual dividend payment per share, based on the most recent dividend declaration.
Forward Annual Dividend Yield: The projected annual dividend yield, calculated by dividing the forward annual dividend rate by the stock’s current price.
Forward PE: Forward Price-to-Earnings Ratio – A valuation measure calculated by dividing a stock’s current price by its estimated earnings per share for the next fiscal year.
Fundamental Analysis: An investment analysis method that focuses on the examination of a company’s financial statements, industry trends, and other factors, aiming to determine the intrinsic value of a stock and its potential for growth.
Funds: Investment vehicles that pool investors’ money to buy a diversified portfolio of stocks, bonds, or other securities.
Gap: A significant price movement in a security’s price, resulting in a discontinuity or “gap” on a price chart, often caused by unexpected news or events.
Gic Group: Global Industry Classification (GIC) Group – A classification system used to categorize companies into industry groups based on their primary business activities.
Gic Industry: Global Industry Classification (GIC) Industry – A classification system used to categorize companies into specific industries based on their primary business activities.
Gic Sector: Global Industry Classification (GIC) Sector – A classification system used to categorize companies into broad sectors based on their primary business activities.
Gic Sub Industry: Global Industry Classification (GIC) Sub Industry – A classification system used to categorize companies into sub-industries based on their primary business activities.
Good ‘Til Canceled (GTC): A type of order to buy or sell a security that remains active until it is either executed or canceled by the investor, allowing the investor to specify a desired price without constantly monitoring the market.
Gross Domestic Product (GDP): The total monetary value of all goods and services produced within a country over a specified period, commonly used as an indicator of economic activity and growth.
Gross Margin: A financial metric that represents the percentage of revenue that a company retains after accounting for the direct costs of producing goods or services, calculated by dividing gross profit by total revenue.
Gross Profit TTM: Gross Profit Trailing Twelve Months – A company’s total revenue minus the cost of goods sold over the past 12 months.
Growth Investing: An investment strategy that focuses on investing in companies with high growth potential, often characterized by rapidly increasing revenues, expanding market share, and innovative products or services.
Growth Rate: The percentage change in a specific financial metric, such as revenue or earnings, over a specified period, used to evaluate a company’s performance and potential for future growth.
Growth Stock: A stock from a company with a higher-than-average potential for growth in revenue and earnings, typically characterized by above-average price-to-earnings ratios and little to no dividend payments.
Hard Stop: A type of stop-loss order that is placed with a broker to sell a security when it reaches a specific price, offering a firm level of protection against losses.
Head and Shoulders: A chart pattern in technical analysis that signals a potential trend reversal, characterized by three peaks with the middle peak being the highest (the “head”) and the two outer peaks being lower (the “shoulders”).
Hedge: An investment strategy used to minimize the risk of adverse price movements in an asset by taking an offsetting position in a related security, such as options or futures contracts.
High-Frequency Trading (HFT): A type of algorithmic trading that utilizes advanced technology and complex algorithms to execute large numbers of trades within milliseconds, aiming to profit from small price discrepancies and market inefficiencies.
Historical Volatility: A measure of a security’s price fluctuations over a specified period in the past, often used to assess the riskiness of an investment.
History: The historical performance or background of a company or financial instrument.
Hold: A recommendation by an analyst or investor to maintain the current position in a security, neither buying nor selling, based on the belief that the security is fairly valued or that market conditions are uncertain.
Holders: The individual or institutional investors who own shares of a stock or other financial instrument.
Holding Company: A company that owns controlling interest in one or more subsidiary companies but does not engage in its own operations, often used for managing a diversified portfolio of businesses.
Home Category: The primary industry or sector in which a company operates.
Horizontal Merger: A merger between two companies in the same industry, often aiming to achieve economies of scale, increase market share, or reduce competition.
Hostile Takeover: An unsolicited attempt by one company to acquire control of another company against the wishes of its management and board of directors, often involving the use of tender offers, proxy fights, or other aggressive tactics.
Hybrid Security: A financial instrument that combines the features of both debt and equity securities, such as convertible bonds or preferred stock, offering a combination of income and potential capital appreciation.
Hyperinflation: An extremely high and typically accelerating rate of inflation, which erodes the purchasing power of a currency and often leads to social and economic instability.
Illiquid: A description of an asset or security that cannot be easily bought or sold in the market without significantly impacting its price, often due to a lack of buyers or sellers, or wide bid-ask spreads.
Income Statement: A financial statement that reports a company’s revenues, expenses, and net income over a specified period, providing insight into the company’s profitability and financial performance.
Income Stock: A stock that primarily provides investors with regular income through dividend payments, often characterized by stable, mature companies with established track records of profitability.
Index Fund: A type of mutual fund or exchange-traded fund (ETF) that aims to replicate the performance of a specific market index by holding a diversified basket of securities included in the index, typically offering lower costs and more predictable returns compared to actively managed funds.
Index Option: A type of option contract that derives its value from an underlying market index, allowing investors to speculate on or hedge against broad market movements.
Index: A statistical measure that tracks the performance of a group of securities, such as stocks or bonds, often used as a benchmark to compare the performance of individual investments or portfolios.
Industry: A group of companies that operate in the same or similar business sectors.
Initial Margin: The minimum amount of equity required to open a new position in a margin account, typically expressed as a percentage of the total value of the investment.
Initial Public Offering (IPO): The first sale of a company’s stock to the public, often used by smaller or younger companies to raise capital for growth and expansion.
Insider Trading: The buying or selling of a security by someone who has access to material, non-public information about the security, which is generally illegal and can result in severe penalties.
Insider Transactions: The buying and selling of a company’s stock by its executives, directors, or major shareholders.
Institutions: Institutional investors, such as mutual funds, pension funds, and insurance companies, that manage large amounts of money and invest in stocks, bonds, and other securities.
Intangible Asset: A non-physical asset, such as a patent, trademark, or goodwill, that has value to a company and can contribute to its future earnings potential.
Interest Rate: The cost of borrowing money, expressed as a percentage of the principal amount, which affects the cost of capital for businesses and the returns on investments for savers.
Intrinsic Value: The estimated true value of an asset or investment, often calculated using fundamental analysis or discounted cash flow models, which can be compared to the current market price to determine if the asset is overvalued or undervalued.
Investment Bank: A financial institution that provides a variety of services to corporations, governments, and institutional investors, including underwriting new securities, facilitating mergers and acquisitions, and providing financial advice.
Investment Grade: A credit rating assigned to a bond or other fixed-income security that indicates a relatively low risk of default, typically resulting in lower yields compared to non-investment-grade securities.
Investment Trust: A type of closed-end fund that pools investors’ money to invest in a diversified portfolio of securities, often managed by a professional investment manager, and whose shares are traded on a stock exchange.
IPO (Initial Public Offering): The first sale of a company’s stock to the public, often used by smaller or younger companies to raise capital for growth and expansion.
IPO Date: Initial Public Offering Date – The date on which a company’s stock is first offered for sale to the public.
Is Delisted: Indicates whether a stock has been removed from a stock exchange, typically due to bankruptcy, acquisition, or failure to meet listing requirements.
ISIN: International Securities Identification Number – A unique identifier assigned to financial instruments, such as stocks and bonds, used for cross-border trading and settlement.
Issuer: The entity, such as a corporation or government, that creates and sells securities, such as stocks or bonds, to raise capital or finance projects.
Japanese Candlestick: A type of chart used in technical analysis that displays the open, high, low, and close prices of a security for a specific period, using a combination of lines and rectangles (called “candlesticks”) to represent price movements and patterns visually.
J-Curve: A graphical representation of the short-term negative and long-term positive effects of an economic policy or investment strategy, often used to describe the relationship between time and returns in private equity or venture capital investments.
Jobless Claims: A weekly report published by the U.S. Department of Labor that measures the number of individuals who have filed for unemployment benefits for the first time, used as an indicator of the health of the job market and the overall economy.
Joint Account: A bank account or investment account held by two or more individuals who have equal ownership and rights to withdraw or transfer funds, often used for shared expenses or as a way to transfer assets to beneficiaries.
Joint Venture: A business arrangement between two or more parties who agree to combine resources, such as capital, technology, or expertise, to achieve a specific goal or undertake a project, typically sharing both profits and risks.
Journal: A record of all transactions, such as purchases, sales, or transfers of securities, that occur in a brokerage account, often used for tracking investment activity, calculating tax liability, and generating statements.
Jumbo Certificate of Deposit (CD): A type of CD that requires a higher minimum deposit than a regular CD, typically offering higher interest rates and longer terms in exchange for the larger deposit amount.
Jumbo Mortgage: A type of mortgage that exceeds the limits set by government-sponsored entities like Fannie Mae and Freddie Mac, typically used to finance expensive properties or for borrowers with high creditworthiness and income.
Jump Risk: The risk that the value of an asset or investment will experience a significant price movement, such as a sudden increase or decrease, which can be caused by unexpected news or events and may result in significant losses or missed opportunities.
Junior Debt: Debt securities that have a lower priority in a company’s capital structure and lower credit ratings compared to senior debt, which means that junior debt holders are paid after senior debt holders in the event of bankruptcy or default.
Junior Stock: A type of equity security that has lower priority in the capital structure of a company compared to other securities, such as preferred stock or senior debt, which means that junior stockholders have a lower claim on the company’s assets in the event of bankruptcy or liquidation.
Junk Bond: A high-yield, high-risk bond with a low credit rating, typically issued by companies with weaker financial profiles or by those facing financial difficulties, offering higher interest rates to compensate for the increased risk of default.
Junk Fees: Additional fees charged by lenders or financial institutions that are not necessary or reasonable for the services provided, often added to closing costs or other transactions and increasing the overall cost of borrowing.
Just-In-Time (JIT): An inventory management and production strategy that aims to minimize inventory levels and reduce costs by producing goods or ordering materials only when they are needed, often relying on close coordination with suppliers and efficient logistics.
Kappa: A measure of the sensitivity of an option’s price to changes in the volatility of the underlying asset, often used to assess the risk and potential return of an investment strategy.
Keiretsu: A type of Japanese business group or consortium that consists of a network of companies with interlocking ownership and business relationships, often used for mutual support and coordination.
Keogh Plan: A tax-deferred retirement savings plan for self-employed individuals or small business owners, similar to an Individual Retirement Account (IRA) but with higher contribution limits and more flexible investment options.
Key Performance Indicator (KPI): A measurable metric used to evaluate the performance of a business, department, or individual, often used to monitor progress towards specific goals or objectives.
Keystone Stock: A stock that is believed to be a leading indicator of the performance of a particular industry or market, often used by investors to make investment decisions or to monitor market trends.
Kicker: An additional feature or benefit that is added to a financial product, such as a bond or option, to make it more attractive to investors.
Kidnap Insurance: A type of insurance policy that provides coverage for losses or expenses related to a kidnapping or other security incident, often used by individuals or businesses operating in high-risk areas or industries.
Kill Switch: A feature or mechanism built into a trading system or platform that allows traders or regulators to halt or limit trading in the event of a market disruption or emergency, typically used to prevent excessive volatility or to protect investors.
Kiting: A fraudulent practice in which a trader or investor artificially inflates the value of a security or a bank account by creating false transactions or deposits, often using the funds from one account to cover the deficits in another.
Knock-in Barrier Option: A type of option contract that becomes active only when the underlying asset reaches a specific price level, also known as the barrier level, often used to limit downside risk or to take advantage of a specific market movement.
Knock-In Option: A type of option contract that becomes active only when the underlying asset reaches a specific price level, often used to limit downside risk or to take advantage of a specific market movement.
Knock-Out Option: A type of option contract that becomes worthless if the underlying asset reaches a specific price level, often used to limit potential losses or to take advantage of a specific market movement.
Know Your Customer (KYC): A set of regulatory requirements that require financial institutions to verify the identity of their clients and to assess their potential risk for money laundering or terrorist financing, typically through document verification, background checks, and ongoing monitoring.
Kurtosis: A statistical measure that indicates the degree of peakedness or flatness of a probability distribution, often used to assess the risk and potential return of an investment.
Large Cap: A term used to describe companies with a large market capitalization, often defined as those with a market value of over $10 billion.
Last Split Date: The most recent date on which a company conducted a stock split, in which the number of outstanding shares is adjusted and the stock price is changed accordingly.
Last Split Factor: The ratio at which a company’s stock was split in the most recent stock split.
LEI: Legal Entity Identifier – A unique 20-character alphanumeric code assigned to legal entities, such as companies, for identification purposes in financial transactions.
Leverage: The use of borrowed money to increase the potential returns or losses of an investment, often used by investors to amplify their exposure to a particular asset or market.
Liability: An obligation or debt that a person or entity owes to another party, such as a loan, a mortgage, or a legal settlement, which can impact an individual’s or company’s creditworthiness and financial stability.
LIBOR: An acronym for London Interbank Offered Rate, which is the interest rate at which banks lend money to each other in the London interbank market, often used as a benchmark for short-term interest rates worldwide.
Limit Order: An order to buy or sell a security at a specified price or better, often used by traders to control the price at which they enter or exit a position.
Limit Up/Limit Down: A mechanism used by securities exchanges to prevent extreme price movements in a security or a futures contract, by imposing price limits on trading activity.
Liquidity: The ease with which an asset or security can be bought or sold in the market without significantly impacting its price, often used as a measure of market efficiency and risk.
Listed Company: A company whose shares are listed on a public stock exchange, and available for trading by the general public.
Long Position: A position taken by an investor or trader who expects the price of a security or an asset to increase, often achieved by buying the security or asset outright or by buying call options.
Low Hanging Fruit: A term used to describe opportunities or assets that are easily accessible or readily available, often used in the context of investment or business strategy.
Margin: The amount of money an investor or trader must deposit with a broker or exchange to open and maintain a position in a margin account, often used to amplify returns or losses.
Market Cap: Short for market capitalization, which is the total value of a company’s outstanding shares, calculated by multiplying the current stock price by the number of shares outstanding.
Market Capitalization Mln: The market capitalization of a company, expressed in millions of dollars.
Market Capitalization: The total value of a company’s outstanding shares, calculated by multiplying the stock price by the number of outstanding shares.
Market Maker: A financial institution or individual that buys and sells securities in the market, often providing liquidity and helping to facilitate trading activity.
Market Order: An order to buy or sell a security at the best available price in the market, often used by traders who prioritize speed and execution over price control.
Master Limited Partnership (MLP): A type of publicly traded partnership that combines the tax benefits of a partnership with the liquidity of a publicly traded stock, typically investing in energy infrastructure assets such as pipelines or storage facilities.
Maturation: The date on which a financial instrument, such as a bond or a certificate of deposit (CD), reaches the end of its term and is due to be repaid, often used by investors to plan for cash flows or to reinvest their capital.
Merger: The combination of two or more companies into a single entity, often used to achieve economies of scale, diversify business lines, or increase market share.
Micro Cap: A term used to describe companies with a relatively small market capitalization, often defined as those with a market value of under $300 million.
Minimum Investment: The minimum amount of money required to invest in a particular financial product, such as a mutual fund, exchange-traded fund (ETF), or private equity fund.
Momentum: A technical analysis indicator that measures the rate of change of a security’s price, often used by traders to identify trends or to signal potential buy or sell opportunities.
Most Recent Quarter: The most recently completed fiscal quarter for which a company has reported financial results.
Moving Average: A statistical calculation used to smooth out short-term price fluctuations and highlight longer-term trends.
Naked Short Selling: A prohibited practice in which a trader or investor sells shares of a stock without first borrowing or arranging to borrow those shares, often used to manipulate the stock’s price or to profit from a decline in the stock’s value.
Name: The full name of a company or financial instrument.
NASDAQ Composite Index: A market capitalization-weighted index that measures the performance of all the companies listed on the NASDAQ stock exchange.
NASDAQ: The Nasdaq Stock Market – An electronic stock exchange in the United States, known for listing technology and growth-oriented companies.
Net Asset Value (NAV): The value of a mutual fund or exchange-traded fund (ETF) calculated by subtracting the fund’s liabilities from its assets and dividing by the number of outstanding shares.
New Issue: A term used to describe a security that is being offered for the first time to the public, often in the form of an initial public offering (IPO) or a secondary offering.
New York Stock Exchange (NYSE): The oldest stock exchange in the United States, where many large-cap companies are listed and traded.
Nonfarm Payrolls: A monthly report published by the U.S. Department of Labor that measures the number of jobs added or lost in the U.S. economy, excluding farm workers and employees of non-profit organizations.
Notional Value: The nominal or face value of a financial instrument, such as a bond or a derivative, used to calculate payments or returns, often used as a reference point for risk management or accounting purposes.
Number Dividends By Year: The total number of dividend payments made by a company during a specific year.
NYSE Arca: An electronic stock exchange owned and operated by the New York Stock Exchange (NYSE) that focuses on exchange-traded products (ETPs), including ETFs and closed-end funds.
NYSE MKT: An equities exchange formerly known as the American Stock Exchange, which focuses on small-cap and mid-cap companies and options trading.
NYSE: New York Stock Exchange – The largest stock exchange in the world, located in New York City, where stocks, bonds, and other financial instruments are bought and sold.
Officers: The top executives of a company, such as the CEO, CFO, and COO, who are responsible for managing the company’s operations and implementing its strategic plans.
One Cancels Other (OCO): An order type that allows traders to place two orders simultaneously, with one being cancelled if the other is filled, often used to manage risk or to capture potential profits.
Open Interest: The total number of outstanding contracts or positions in a futures or options market, often used as a measure of market liquidity or sentiment.
Operating Margin TTM: Operating Margin Trailing Twelve Months – A measure of a company’s operating profitability, calculated by dividing operating income by revenue over the past 12 months.
Option: A contract that gives the holder the right, but not the obligation, to buy or sell a particular asset or security at a specified price and time, often used by traders to hedge risk or to speculate on price movements.
Order Book: A list of buy and sell orders for a particular security or asset, typically displayed on a trading platform or exchange.
Ordinary Income: Income earned from regular sources, such as wages, salaries, or interest income, which is subject to ordinary income tax rates.
OTC: Over-The-Counter – A decentralized market where financial instruments, such as stocks and bonds, are traded directly between buyers and sellers, rather than on a centralized exchange.
Outperform: A term used by analysts to describe a stock or investment that is expected to perform better than its peers or the overall market, often based on fundamental or technical analysis.
Outstanding Shares: The total number of shares issued by a company that are currently held by investors.
Over the Counter (OTC): A decentralized market where financial instruments, such as stocks, bonds, or currencies, are traded directly between parties without the supervision of an exchange or other centralized authority.
Overbought: A term used to describe a security or market that has experienced a significant increase in price or value, often considered to be due for a correction or a pullback.
Overweight: A term used by analysts to describe a stock or investment that is assigned a higher weight or allocation in a portfolio than its benchmark or peers, often based on factors such as growth prospects or valuation.
P/E Ratio: A valuation ratio that compares a company’s stock price to its earnings per share, often used to assess the relative value of a company or to compare it to its peers.
Par Value: The nominal or face value of a bond or stock, often used as a reference point for calculating interest payments or dividends.
Passive Investing: A type of investment strategy that seeks to replicate the performance of a market index or benchmark, often using low-cost index funds or exchange-traded funds (ETFs).
Payout Ratio: The proportion of a company’s earnings that is paid to shareholders as dividends, expressed as a percentage of net income.
PE Ratio: Price-to-Earnings Ratio – A valuation measure calculated by dividing a stock’s current price by its earnings per share, used to evaluate the relative value of stocks.
PEG Ratio: Price/Earnings-to-Growth Ratio – A valuation measure that compares a stock’s price-to-earnings ratio to its expected earnings growth rate, used to evaluate the relative value of growth stocks.
Penny Stock: A low-priced, highly speculative stock, typically trading for less than $5 per share and often not listed on a major stock exchange.
Percent Insiders: The percentage of a company’s outstanding shares owned by its insiders, such as executives and directors.
Percent Institutions: The percentage of a company’s outstanding shares owned by institutional investors, such as mutual funds and pension funds.
Portfolio: A collection of financial assets, such as stocks, bonds, and other securities, owned by an individual or institution, often managed by a financial advisor or investment manager.
Position: A term used to describe an investor or trader’s ownership of a particular security or asset, often used to refer to the size or direction of that ownership.
Preferred Stock: A type of stock that gives the holder preferential treatment over common stockholders in terms of dividends and/or voting rights, often used by companies to raise capital without diluting the value of existing shares.
Price Action: The movement of a security’s price over time, often used by traders to identify patterns or to make trading decisions.
Price Book MRQ: Price-to-Book Ratio Most Recent Quarter – A valuation measure calculated by dividing a stock’s current price by its book value per share for the most recent quarter.
Price Sales TTM: Price-to-Sales Ratio Trailing Twelve Months – A valuation measure calculated by dividing a stock’s current price by its revenue per share over the past 12 months.
Price to Book Ratio (P/B Ratio): A valuation ratio that compares a company’s stock price to its book value per share, often used to assess the relative value of a company or to compare it to its peers.
Price to Sales Ratio (P/S Ratio): A valuation ratio that compares a company’s stock price to its revenue per share, often used to assess the relative value of a company or to compare it to its peers.
Price-to-Earnings Ratio (P/E Ratio): A valuation ratio calculated by dividing the market price of a stock by its earnings per share.
Primary Ticker: The main stock symbol or ticker used to identify a company’s shares on a stock exchange.
Profit Margin: A measure of a company’s profitability, calculated by dividing net income by revenue, expressed as a percentage.
Quarterly Earnings Growth YOY: The year-over-year percentage change in a company’s earnings per share for a specific quarter.
Quarterly Revenue Growth YOY: The year-over-year percentage change in a company’s revenue for a specific quarter.
Quarterly: Refers to financial data or events that occur once every three months.
Quote: The bid and ask prices for a particular security or asset, often provided in real-time by financial data providers and trading platforms. The quote may also include other information such as the last traded price, trading volume, and other market data.
Return On Assets TTM: Return on Assets Trailing Twelve Months – A measure of a company’s profitability, calculated by dividing net income by total assets over the past 12 months.
Return On Equity TTM: Return on Equity Trailing Twelve Months – A measure of a company’s profitability, calculated by dividing net income by shareholder equity over the past 12 months.
Revenue Per Share TTM: Revenue per Share Trailing Twelve Months – A company’s total revenue divided by the number of outstanding shares over the past 12 months.
Revenue TTM: Revenue Trailing Twelve Months – A company’s total revenue generated over the past 12 months.
SEC: An acronym for the United States Securities and Exchange Commission, which is the government agency responsible for enforcing federal securities laws and regulating the securities industry.
Sector: A broad category of industries that share similar economic characteristics or are related in terms of the products and services they provide.
Shares Float: The number of a company’s outstanding shares that are available for trading by the public.
Shares Outstanding: The total number of shares issued by a company that are currently held by investors, including both public and private shareholders.
Shares Short Prior Month: The number of a company’s shares that were sold short in the previous month.
Shares Short: The number of a company’s shares that have been sold short by investors, meaning they have borrowed the shares and sold them in anticipation of buying them back at a lower price.
Shares Stats: Various statistics related to a company’s outstanding shares, such as the number of shares outstanding, shares float, and shares short.
Short Percent Float: The percentage of a company’s floating shares that have been sold short.
Short Percent Outstanding: The percentage of a company’s outstanding shares that have been sold short.
Short Percent: The percentage of a company’s outstanding shares that have been sold short.
Short Ratio: A measure of short interest in a stock, calculated by dividing the number of shares sold short by the average daily trading volume.
Short Selling: A trading strategy where an investor or trader borrows shares of a stock from a broker and sells them in the hope that the stock’s price will decline, allowing the investor to buy back the shares at a lower price and pocket the difference as profit.
Splits Dividends: A record of a company’s stock splits and dividend payments over time.
Spread: The difference between the bid and ask prices of a security or asset, often used as a measure of market liquidity or as a trading cost.
Stock Split: A corporate action that increases the number of outstanding shares while proportionally reducing the stock’s price.
Stock Split: A corporate action where a company increases the number of its outstanding shares by issuing new shares to existing shareholders, often used to make the stock more affordable or to improve liquidity.
Stop Limit Order: An order to buy or sell a security at a specified price or better, but only after a certain price level, called the stop price, has been reached or breached.
Stop Loss Order: An order to sell a security at a specified price or better, but only if the price falls to a certain level, called the stop price, often used by traders to limit potential losses.
Support: A technical analysis term used to describe a price level where a security or asset has experienced buying pressure in the past, often seen as a potential area of price stability or a buying opportunity.
Sustainable Investing: An investment approach that seeks to generate financial returns while also considering environmental, social, and governance (ESG) factors, often used by investors who aim to align their investments with their values or to promote positive social or environmental outcomes.
Technical Analysis: An investment analysis approach that uses past price and volume data to forecast future price movements and to identify potential buying or selling opportunities.
Technicals: Various technical indicators and chart patterns used by traders to analyze and predict the price movement of stocks and other financial instruments.
Ticker Symbol: A unique combination of letters assigned to a company’s stock or other security for identification purposes, often used as a shorthand way of referring to a particular security.
Trading Volume: The number of shares or contracts of a security or asset that are traded during a given period of time, often used as a measure of market liquidity or as an indicator of investor sentiment.
Trailing PE: Trailing Price-to-Earnings Ratio – A valuation measure calculated by dividing a stock’s current price by its earnings per share over the past 12 months.
Trailing Stop Order: An order to sell a security if it drops a certain percentage or dollar amount from its highest price since the order was placed, often used by traders to lock in profits while still allowing for potential upside.
Transaction Cost: The costs associated with buying or selling a security or asset, including commissions, fees, and taxes, often considered by investors when making investment decisions.
Treasury Bond: A long-term debt security issued by the U.S. government, typically with a maturity of 10 years or more, often used as a benchmark for other fixed income securities.
Trend: The direction and momentum of a security or asset’s price movement over a certain period of time, often used by traders to identify potential buying or selling opportunities.
Turnover: The rate at which a portfolio or fund buys and sells its holdings, often used as a measure of trading activity or as an indication of a manager’s investment style.
Underlying Asset: The asset or security that underlies a derivative, such as an option or a futures contract, often used as a reference point for calculating the value or price of the derivative.
Underperform: A term used by analysts to describe a stock or investment that is expected to perform worse than its peers or the overall market, often based on fundamental or technical analysis.
Unrealized Gain/Loss: A gain or loss on a security or asset that has not yet been realized through a sale or other transaction, often used by investors and traders to assess their investment performance or to make trading decisions.
Valuation: The process of determining the current worth of a stock, bond, or other financial instrument based on various financial metrics, such as price-to-earnings ratio, price-to-sales ratio, and dividend yield.
Value Investing: An investment approach that seeks to buy undervalued securities or assets with the expectation that their prices will eventually rise to reflect their true value, often associated with fundamental analysis.
Value Stock: A stock that is perceived to be undervalued relative to its peers or the overall market, often based on its financial metrics, such as price-to-earnings ratio or price-to-book ratio.
Value: The perceived worth or usefulness of a security or asset, often based on its fundamentals, financial metrics, and/or its potential for growth or income.
Variable Annuity: A type of annuity that offers investors a variable rate of return based on the performance of a portfolio of underlying investments, often used as a retirement income vehicle.
Volatility Index (VIX): A measure of the implied volatility of the S&P 500 index options, often used as a gauge of market sentiment and risk appetite.
Volatility: A measure of the degree of variation in a security or asset’s price over a certain period of time, often used as an indicator of risk or as a factor in trading decisions.
Volume Oscillator: A technical analysis tool that measures the difference between two moving averages of trading volume, often used to identify potential changes in market trends or to make trading decisions.
Volume Weighted Average Price (VWAP): An average price calculated by weighting each trade or transaction by its trading volume, often used by traders to assess the average price at which a security or asset was bought or sold.
Volume: The total number of shares or contracts of a security or asset that are traded during a given period of time, often used as a measure of market liquidity or as an indicator of investor sentiment.
Wall Street Target Price: The average stock price target set by analysts from major investment banks and research firms, used as an indicator of the potential future value of a stock.
Wall Street: A metonymy for the financial district of New York City, home to many of the world’s largest banks, investment firms, and stock exchanges.
Warrant: A derivative that gives the holder the right, but not the obligation, to buy or sell a particular security or asset at a specified price and time, often issued by companies as a way to raise capital.
Wash Sale: A transaction where an investor sells a security at a loss and then buys the same or a substantially identical security within 30 days before or after the sale, often used to avoid taxes or to manipulate the market.
Wedge: A technical analysis pattern that resembles a triangle, often used to identify potential changes in market trends or to make trading decisions.
Whipsaw: A term used to describe a market condition where a security or asset’s price moves sharply in one direction and then sharply in the opposite direction, often causing losses for traders and investors.
Window Dressing: A term used to describe the practice of fund managers making changes to their portfolios at the end of a reporting period in order to improve their performance or to make their holdings appear more attractive to investors.
Working Capital: A measure of a company’s short-term financial health, calculated by subtracting current liabilities from current assets, often used to assess a company’s ability to meet its short-term obligations.
Year-to-Date (YTD): A measure of investment performance that shows the return of a security or asset from the beginning of the current calendar year to the present.
Yield Curve: A graph that plots the yields of bonds with different maturities, often used to understand market expectations for interest rates and economic growth.
Yield Spread: The difference between the yield of a security or asset and the yield of another security or benchmark, often used to compare the relative value of different investments.
Yield to Call (YTC): The total return anticipated on a bond if it is held until its call date, taking into account the bond’s current market price, coupon rate, and time to call.
Yield to Maturity (YTM): The total return anticipated on a bond if it is held until maturity, taking into account the bond’s current market price, coupon rate, and time to maturity.
Yield: The income or return generated by a security or asset, typically expressed as a percentage of its price or value, often used as a measure of investment income or as an indicator of risk.
Zero-Coupon Bond: A bond that pays no interest or coupon payments, but is sold at a discount to its face value, with the full face value paid at maturity, often used as a way to lock in a guaranteed return or to finance long-term investments.
Z-Score: A statistical measure that compares a company’s financial metrics to its industry peers, often used to assess a company’s financial health and creditworthiness.