12b-1 Fees
A 12b-1 fee is a fee charged by a mutual fund that covers the marketing and distribution costs of the fund as well as some service fees.
0–9
52-Week High/Low
The 52-week high and low for a stock represents the highest closing price and the lowest closing price the stock has traded at over a 52-week period.
52-Week Highs
A 52 week high is the highest price that a stock has traded at in the last year. Many investors use 52 week highs as a factor in determining a stock's current value and as a predictor of future price movements.
A
Accumulation/Distribution
Accumulation/distribution looks at the proximity of a closing price to its high and low price to determine if more traders are buying (accumulating) or selling a particular security.
After-Hours Trading
After-hours trading is buying and selling of stocks that takes place after normal trading hours. Trading occurs through an electronic market between 4:05 p.m. and 8:00 p.m.
Analyst Ratings
Analyst ratings or stock ratings, such as “Buy”, “Sell”, and “Hold” are an evaluation of a stock's expected performance and/or its risk level as determined by a rating agency or brokerage firm.
Analyst Ratings Trading
The traditional ratings an analyst uses are “buy”, “sell”, and “hold” although they may use additional categories such as “underperform” and “outperform” to show a broader spectrum of potential outcomes to investors.
Arbitrage
Arbitrage is a trading strategy in which there is an attempt to profit from momentary price differences that can develop when a security or commodity trades on two different exchanges.
Asset Allocation
Asset allocation is an investment strategy that purposes to balance risk versus reward by adjusting the percentage of each asset, among different asset classes (i.e. stocks, bonds, cash, real estate, etc.) in an investment portfolio.
Average Daily Trade Volume (ADTV)
Average daily trading volume (ADTV) is a calculation that identifies the number of individual securities traded over a specified amount of time, divided by the number of days in that time period.
B
Back-End Load
A back-end load is a sales charge (or commission) that an investor pays when they sell shares in a mutual fund.
Backdoor Roth IRA
A backdoor Roth IRA is not a financial product, but rather a strategy that high-income earners can use to put retirement savings into a Roth IRA.
Balance Sheet
A company's balance sheet gives an accounting of what a company owns (its assets), what it owes (its liabilities), and the amount of capital that the company receives from its shareholders.
Balanced Fund
A balanced fund is a kind of mutual fund that has a mix of both equities (such as stocks or commodities) and bonds.
Bar Chart
For investors, a bar chart is a price evaluation tool that serves as a visual representation of the price of a security over a period of time.
Basic Economics
Basic economics is the study of how societies allocate a limited amount of resources which can have alternative uses.
Bear Market
A bear market is defined as a market that declines by 20% or more over at least a two-month timeframe.
Beige Book
The Beige Book is a leading economic indicator of the United States economy and is published eight times a year.
Beta
Beta is the result of a calculation that measures the relative volatility of a stock in correlation to a particular standard.
Bid-Ask Spread
The bid-ask spread is a tool that market makers at financial institutions use to facilitate buying and selling in a way that facilitates orderly trading.
Black Swan
Black swan is used to describe an extremely rare and unpredictable event.
Blockchain
Blockchain is a decentralized record-keeping technology that provides accurate and secure data storage on a digital ledger.
Blue-Chip Stocks
Blue-chip stocks are known for their quality and stability. Although there is no single definition, investors typically agree that a blue-chip stock has a market capitalization of over $5 billion.
Bollinger Bands
Bollinger bands are a technical analysis tool that clarifies the price action of a security by showing its volatility through the expansion or contraction of the bands over a period of time.
Bond
A bond is a type of fixed-income security that can be thought of like a credit instrument by the issuing party.
Book Value Per Share (BVPS)
Book value per share (BVPS) is a ratio used to compare a firm's common shareholder's equity to the number of shares outstanding.
Bull Market
A bull market occurs when a particular asset class is rising in value. This encourages buying, which then causes the asset class to continue to rise.
Buy Rating
In the case of a buy rating, an analyst is indicating that the price of an asset is likely to move higher over a period of time.
Buy-Side Analysts
A buy-side analyst performs equity research for institutional investors that work for firms such as hedge funds, pension funds or mutual funds.
Buyback
In a stock buyback, or share repurchase program, a company repurchases their shares in the marketplace.
C
CAC 40 Index
A major benchmark index tracking leading companies listed on the exchanges of the French stock market.
Call Option
The owner of the call option, an investor is buying the right, but not the obligation, to purchase a specific number of shares of a company's stock at an agreed upon price.
Call Option Volume
Volume is the amount of buying and selling that is being done by a security. Equities, such as stocks along with futures, currencies and other investments all measure trading volume.
Candlestick
A candlestick is a technical indicator that shows traders the opening and closing price of a stock for a specific period.
Capital Gains
A capital gain is an increase in value between the price an asset (such as real estate or stocks) is sold for and the price that an investor paid for the asset.
Capital Gains Distribution
A capital gains distribution is a payment to shareholders of a mutual fund that is the result of a liquidation of either the underlying stocks and securities or the dividend and interest earned by the fund's holdings.
Cash Asset Ratio
The cash asset ratio is a fundamental measurement tool that represents, as a percentage, the amount of highly liquid assets versus the amount of short-term liabilities.
Cash Flow
Cash flow is a measurement of how much cash and cash equivalents a company is receiving and how much it is sending out.
Catch-Up Contributions
Catch-up contributions are deposits that are made above and beyond what is allowed in an employer-sponsored retirement plan.
CBOE Russell 2000® Volatility Index
This index is an indicator of the short-term expectation of volatility in the stock market as it relates to option prices for the Russell 2000 Index.
CD Ladder
A CD ladder is an investment strategy in which a fixed amount of money is divided equally among multiple certificates of deposit purchased at varying maturity dates.
Certificate of Deposit (CD)
A certificate of deposit (CD) is a financial product that allows a financial institution or brokerage firm to hold a depositor's funds until a fixed maturity date in exchange for a fixed rate of return.
Channel Trading
Channel trading is a trading strategy that relies on technical analysis based on defined trading channels created by price movement patterns.
Circuit Breakers
Circuit breakers are a security measure put in place by the Securities & Exchange Commission (SEC) as an effort to reduce panic-selling on U.S. stock exchanges.
Closed-End Mutual Funds
Closed-end mutual funds (CEFs) are a special type of mutual fund, an investment structure, with shares traded in the open market, like stocks or ETFs.
Commodities
Commodities are raw materials that are used every day by millions, if not billions of consumers. Commodities are priced based on supply and demand.
Compound Annual Growth Rate (CAGR)
The compound annual growth rate is a value that represents the arithmetic mean of an investment's annual growth rate over a specified period of time.
Compound Interest
Compound interest is the interest calculated on an additional principal balance that includes not only the interest on the principal but also the interest on all the interest that has accumulated in the previous period.
Conference Calls
A conference call is an event that allows companies to provide information to any interested party, including institutional investors, analysts, and individual investors.
Consumer Price Index (CPI)
The consumer price index examines the average cost of a select group of consumer goods and services that range from food and beverages to smartphones and medical care.
Convertible Shares
Convertible shares are a class of a company's preferred shares. Like common shares, convertible shares give shareholders an ownership stake in the company that is offering the shares.
Correction
In investing terms, a correction is defined as a statistical event where the price of a security or asset class experiences a decline of at least 10% from its most recent peak.
Cost of Capital
The cost of capital is the amount of money needed to make a capital budgeting project worthwhile.
Cost of Debt
Cost of debt is the effective interest rate that a company will pay on all of its debt obligations, expressed as a percentage.
Cost of Equity
For a business, the cost of equity is the expected return they will get from the equity financing they receive. For an investor, it is the expected return in exchange for buying shares.
Cost of Goods Sold (COGS)
Cost of goods sold (COGS) is essentially how much it costs a business to make a sale. This is why COGS is also referred to as the cost of sales.
Coverage Ratio
The coverage ratio is actually a series of ratios that are used by investors to determine a company's ability to meet their financial obligations.
Cryptocurrencies
Cryptocurrency is a digital currency that exists as a series of coded transactions on a blockchain (or digital ledger).
Current Ratio
The current ratio (also known as the working capital ratio) is a tool that allows investors to assess the liquidity of a company.
D
Day Trading
Day trading is the practice of buying and selling securities within a single day. Day traders will frequently enter and exit trades within several hours, or even several minutes.
Dead Cat Bounce
A dead cat bounce is an event that takes place as part of a prolonged price downtrend, where the price may appear to recover or signify a trend reversal.
Death Cross
The death cross is a technical chart pattern that indicates an asset has the potential to be exposed to major selling pressure.
Debt-To-Equity Ratio
A company's debt-to-equity ratio is a performance metric that measures a company's level of debt in relation to the overall value of their stock.
Depreciation
Depreciation is an accounting practice that allows a company to record, as an expense, only a portion of an asset's cost over the period of that asset's useful life.
Derivative
A derivative is a contractual agreement between two parties. Its value is determined by the value of an underlying asset such as stocks, bonds, commodities, or precious metals.
Diluted Earnings Per Share
Diluted earnings per share is a metric that helps analysts and investors estimate the quality of a company's basic earnings per share (EPS).
Discount Rate
The most common definition is the interest rate the Federal Reserve Banks charge to financial institutions who borrow money from their overnight discount window.
Diversification
Diversification in investing is the method of allocating capital that reduces exposure to any one particular asset or risk, by investing in a variety of assets.
Dividend
Dividend stocks are issued by companies who redistribute a portion of their profits to their shareholders on a regular basis.
Dividend Achievers
A dividend achiever is a company whose common stock has posted an increased dividend payout at least once a year for 10 consecutive years.
Dividend Aristocrat Index
The dividend aristocrat index is a group of blue-chip S&P 500 companies with a documented history of delivering increased dividends for at least 25 consecutive years.
Dividend Kings
Dividend kings are companies who have increased their dividend payout for at least 50 consecutive years.
Dividend Reinvestment Plan (DRIP)
A dividend reinvestment plan (DRIP) is a program that gives investors the opportunity to reinvest their cash dividends.
Dividend Yield
A dividend yield (also called the dividend-price ratio) is simply a company's dividend expressed as a percentage of its stock price.
Dogs of the Dow
The Dogs of the Dow is a dividend investing strategy with a goal of beating the Dow Jones Industrial Average (DJIA) by tilting a portfolio to high-yield dividend stocks.
Dollar Cost Averaging
Dollar cost averaging is an investment strategy where an investor buys a fixed dollar amount of a security at regular intervals regardless of the price.
Dow Jones Industrial Average (DJIA)
One of the most-watched indices in the world: an index of 30 blue chip stocks that use a variable to create a price-weighted average that fluctuates with price changes in the component stocks.
Dual Listing
A dual listing occurs when a publicly-traded company decides to list its publicly traded shares on more than one global stock exchange.
E
Earnings Per Share (EPS)
Earnings per share (EPS) is an investment metric that determines a company's profit divided by its number of common outstanding shares.
Earnings Reports
Earnings reports are part of the legal requirements that publicly held companies must meet to disclose their company's performance.
Economic Bubble
An economic bubble is a condition caused when an asset rises in value based on investor sentiment that is not supported by fundamental or technical analysis of the stock.
Economic Reports
Economic reports contain data about various sectors of the U.S. and global economy, published on a set schedule by different departments of the Federal Government.
Elliott Wave Theory
Elliott Wave Theory is a market forecasting tool that was developed in the 1930s by Ralph Nelson Elliott.
Equal Weight Rating
When an analyst gives an equal weight rating, they are expecting a stock's performance to be in line with the average return of the other stocks that the analyst covers.
Equity Income
Equity income is primarily referred to as income that is generated from stock dividends, a portion of a company's earnings paid back to shareholders in cash.
Euro STOXX 50 Index
The Euro STOXX 50 Index is a market-weighted index of the 50 largest companies in the 11 Eurozone countries.
Ex-Dividend
The ex-dividend date is the first day a stock will be trading “ex-dividend”, established by the market once the company announces a date of record for their dividend.
Exchange-Traded Funds (ETFs)
An exchange-traded fund is a pooled investment vehicle that has some of the attributes of owning individual stocks and some attributes of owning a mutual fund or index fund.
F
FAANG Stocks
FAANG is an acronym for five individual companies: Facebook, Amazon, Apple, Netflix, and Google (now Meta and Alphabet).
Federal Reserve
The Federal Reserve is the central bank of the United States of America, playing an important role in formulating and guiding the nation's monetary policy.
Fibonacci Channel
A Fibonacci channel is a technical indicator of price movement. Lines that form inside a Fibonacci channel estimate likely areas of support and resistance.
Fiduciary
A fiduciary is someone who has a legal responsibility to put your needs above their own, ethically bound to act in their client's best interests.
FinTech
FinTech (financial technology) refers to technology aimed at making financial services cheaper, better, and faster.
Float
Float refers to the number of shares that a company issues that are available for trading on secondary markets without restriction.
Forex
Forex (FX) is an abbreviation for the foreign exchange market, the largest market in the world with the highest liquidity.
Front-End Load
A front-end load is a sales charge that an investor pays at the time they purchase shares in a mutual fund.
FTSE 100 Index
The FTSE 100 is the United Kingdom's (UK) equivalent to the S&P 500, and is looked at as a leading indicator of the UK economy.
Fundamental Analysis
Fundamental analysis attempts to predict which stocks are valuable through analyzing factors such as sales, P/E ratio, profits, EPS, and industry-specific factors.
Futures Contract
A futures contract involves a buyer and seller who enter a legally binding contract to trade a specified amount of an asset at a particular date for a specific price.
G
G-20
The G-20 is a group of finance ministers and central bank governors from 19 countries that serve as the main economic council of nations.
Gap Down Stocks
Gap-down stocks are stocks that open at a lower level, often signified by a sharp price move, with no other trading occurring before or after, creating a price gap.
Gap Up Stocks
A gap-up stock is one that opens at a higher level, often signified by a sharp move, with no other trading occurring before or after the gap.
Golden Cross
The golden cross is a technical indicator seen on a candlestick chart when a relatively short-term moving average crosses a long-term moving average.
Google Finance
Google Finance is a search tab within Google.com that allows investors to track investments and screen stocks according to their preferences.
Google Finance Portfolio
Google Finance portfolio allows investors to add an investment portfolio or stock watchlist and track day-to-day performance of current holdings.
Green Investing
Green investing is an investment strategy that focuses on companies and financial instruments committed to conserving natural resources and clean energy.
Gross Domestic Product (GDP)
Gross domestic product is a measurement of the monetary value of all the final goods and services that a country produces within its borders over a specific time period.
Growth and Income Funds
A growth and income fund is a mutual fund or ETF that attempts to simultaneously achieve growth and income goals for shareholders.
Growth Stocks
Growth stocks are companies that tend to increase in capital value rather than yield high income, usually outperforming the broader stock market.
H
Hang Seng Index (HSI)
The Hang Seng Index (HSI) is a market capitalization-weighted index made up of the 50 largest companies that trade on the Hong Kong stock exchange.
Hedge Funds
A hedge fund is an alternative to traditional forms of investing, using pooled funds from qualifying investors to achieve a positive absolute return.
High-Yield Dividend Stocks
High-yield dividend stocks are a proven way for investors to grow their wealth and are a solid choice for investors of all styles.
Hold Rating
A hold rating is used to indicate a company's price targets more than to provide a trading signal, since no security stays at a constant price.
Holder of Record
A holder of record is the individual or entity that is considered to be the registered owner of a security.
I
Index Funds
An index fund is a type of mutual fund that includes a portfolio of equities designed to match or track a specific market index.
Inflation
Inflation is a general rise in the cost of goods and services which is offset by a symmetrical decline in the purchasing power of a currency.
Initial Coin Offering (ICO)
An initial coin offering is a crowdfunding tool whereby an investor gives a business an existing cryptocurrency in exchange for tokens.
Initial Public Offering (IPO)
An Initial Public Offering (IPO) is a formal process in which a previously private company for the first time raises money through the sale of shares on a major stock exchange.
Insider Trading
Insider trading is the action of buying or selling a security based on material information that is not available to the public.
Institutional Investors
Institutional investors are large firms that buy and sell securities and make other investment decisions on behalf of individual members or shareholders.
Intrinsic Value
Intrinsic value helps an investor determine whether a company's stock is overvalued or undervalued.
Inverted Yield Curve
An inverted yield curve is a market condition in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality.
L
Leveraged Buyout (LBO)
A leveraged buyout (LBO) is an acquisition of a company that is financed almost entirely by debt.
LIBOR
The London Interbank Offered Rate is the lowest rate that banks charge to lend to each other.
Liquidity
Liquidity is a non-statistical measurement of how easily an asset can be bought or sold without affecting the asset's price.
Lock-Up Period Expiration
A lock-up period is a period of time (usually 90-180 days) when investors are not allowed to buy or redeem shares.
M
MACD
Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price.
Management Fee
A management fee is compensation charged by an investment manager for their role in managing an investment fund.
Margin
Margin in the context of trading is collateral that a trader supplies to a broker in order to trade currencies, commodities, futures, and marginable stocks.
Market Capitalization
Market capitalization is the market value of a company's outstanding shares and is used to rank the size of companies.
Market Indexes
A market index is a theoretical portfolio of investment holdings that represent a particular segment of the financial market.
Market Perform
The market perform rating suggests a neutral outlook for a stock's performance compared to a benchmark index such as the S&P 500 or DJIA.
Market Timing
Market timing is an investing and trading strategy that involves shifting assets inside a portfolio to take advantage of pricing inequities between asset classes.
Momentum Indicators
Momentum indicators are technical indicators that help traders confirm the quality of a buy signal or sell signal.
Momentum Investing
Momentum investing is a trading strategy that requires investors to identify chart patterns for indications of stocks that are riding a trend.
Monthly Dividend Stocks
Investors should do their due diligence before investing in a monthly dividend stock, as yield is tied to a company's stock price.
Most Active Stocks
The list of most active stocks can be a useful guide for investors, sometimes called a road map for day traders.
Moving Average (MA)
A moving average is a lagging indicator that gives investors a view of where a security is trending without the outlying moves in price.
Moving Average Convergence Divergence (MACD)
The MACD oscillator is a technical analysis tool that is an indicator of momentum, providing a visual indicator of buying and selling trends.
Municipal Bonds
Municipal bonds (“Munis”) are government-issued debt securities used to fund day-to-day operating expenses or large-scale capital projects.
Mutual Funds
Every mutual fund is a company that combines money from multiple investors and invests those funds into securities dictated by the fund's prospectus.
N
NASDAQ
The Nasdaq Stock Market is an American stock exchange and the second-largest exchange in the world by market capitalization.
Net Asset Value
Net asset value is the value of a fund's assets minus its liabilities relative to their outstanding shares.
Net Income
Net income is the measurement of whether or not a company is making money and, if so, how much profit they are retaining.
Net Margin
Net margin (also known as net profit margin) is the amount of revenues that remains as profit after a given period of time.
Neutral Rating
When an analyst rates a stock as neutral they do so with the expectation that the stock is going to trade in a tight range.
Nikkei 225 Index
The Nikkei index is a price-weighted index that tracks the performance of Japan's top 225 blue-chip companies.
No Load Funds
A no-load fund does not charge a sales fee for transactions, unlike the standard load of 4% to 6% for most funds.
O
Operating Income
Operating income is the amount of profit a business realizes from its operations after deducting operating expenses.
Options Trading
Options trading is the sale of a contract in which the buyer purchases the right, but not the obligation, to buy or sell a security at a specified price on or before a specified date.
Outperform Rating
An outperform rating indicates that the analyst expects the stock to beat the market or market index for that stock.
Outstanding Shares
Outstanding shares are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them.
Overbought
When a security is said to be overbought it is said to be trading above its intrinsic value.
Oversold
An asset is considered to be oversold when it is trading at a price that is lower than its perceived intrinsic value.
P
P/E Growth (PEG)
The P/E growth ratio (PEG) was developed and is used as a refinement of the standard P/E ratio used in fundamental analysis.
Pattern Day Trader
The Pattern Day Trader (PDT) rule is one of the most common rules that throw new traders off.
Penny Stocks
Penny stocks are common shares of small public companies that trade at low prices per share; the SEC defines a penny stock as one that trades below $5 per share.
Percentage Decliners
Percentage decliners are securities that are showing the biggest losses in terms of their percent change.
Percentage Gainers
Percentage gainers are the stocks that are up the most in terms of their percent change, without regard to trading volume.
Portfolio Manager
A portfolio manager is a financial professional responsible for purchasing and selling assets in a mutual fund, closed-end fund or ETF.
Preferred Stock
Preferred stock is a class of stock that has a higher (or preferred) claim to the assets and earnings of a corporation than owners of common stock.
Price Target
A price target is an analyst's or adviser's estimate of the future price level of an asset, such as a stock or ETF.
Price to Earnings Ratio (P/E)
The price to earnings ratio measures a company's current share price relative to its per-share earnings, used in valuing companies.
Price-Sales Ratio
The price-sales ratio compares a company's stock price to its revenues to indicate the degree to which a stock is accurately priced.
Producer Price Index (PPI)
The Producer Price Index (PPI) is a weighted index of prices from the perspective of the producer or wholesaler, released monthly by the BLS.
Profit Margin
Profit margin is one of the most commonly used profitability ratios that help investors understand what percentage of sales has become profitable.
Put Option
A put option is a financial contract where the owner buys the right, but not the obligation, to sell 100 shares of a given stock at an agreed-upon price before expiration.
Put Option Volume
Put option volume means the amount of buying or selling for a particular contract, usually similar to the volume of the underlying asset.
Q
QQQ ETF
The QQQ ETF, also known as the PowerShares QQQ, is one of the most widely held and traded exchange-traded funds.
Quantitative Easing
A quantitative easing program is one in which a central bank uses newly created money to purchase assets, typically government bonds, from financial institutions.
Quick Ratio
The quick ratio (or acid-test ratio) is a liquidity ratio used as a stand-alone metric or to refine the current ratio.
Quiet Period
The quiet period refers to the waiting period that starts once a company and its IPO underwriters agree to proceed with the offering.
Quiet Period Expirations
Quiet period expirations are the dates upon which a company's IPO registration has been approved by the SEC.
R
Range Trading
Range trading is a trading strategy based on technical analysis of price movement between a defined level of support and resistance.
Real Estate Investment Trust (REIT) ETF
A REIT is made up of a number of real estate companies that own a portfolio of income-producing real estate assets.
Recession
A recession is a downturn in the economy marked by multiple consecutive quarters of declining economic activity.
Relative Strength Index (RSI)
The RSI is a momentum oscillator that measures the speed and change of price movements, oscillating between zero and 100.
Resistance Level
An asset's resistance level is the price point at which its rise in price is slowed, or reversed, when the volume of sellers increases.
Retained Earnings
Retained earnings tell you how much profit a company has left over after paying out dividends.
Retirement Calculator
A retirement calculator is a tool that helps you see where you stand in your goal of a sound retirement based on your personal information.
Return On Assets (ROA)
The return on assets ratio is a profitability measure that investors use to measure return on investment.
Return on Equity (ROE)
Return on equity measures how efficient a company is in using shareholder assets to create earnings.
Return on Investment (ROI)
Return on investment (ROI) is a performance measurement that shows your profit on an investment as a percentage of your overall investment.
Reverse Stock Split
A reverse stock split is a corporate action where a company reduces its outstanding shares while increasing the price per share proportionally, keeping market value the same.
Risk Tolerance
Risk tolerance is a measurement of an investor's willingness to accept a degree of variability in their investment returns.
Roth IRA
A Roth IRA is an individual retirement account with several unique features that separate it from other retirement plans.
Rule of 72
The Rule of 72 is a simplified equation that helps estimate the number of years required to double money growing at a specified rate of return.
S
S&P 500 Index
The Standard and Poor's (S&P) 500 index is a widely used stock market index that follows the stock price performance of 500 large cap companies.
S&P/ASX 200 Index
The S&P/ASX 200 Index is Australia's equivalent to the S&P 500, the benchmark institutional investable stock market index in Australia.
S&P/TSX Index
The S&P/TSX Index is essentially Canada's version of the S&P 500, tracking approximately 250 of the largest and most prominent Canadian companies.
SEC Filing
An SEC filing is a series of documents that a publicly traded company must file with the U.S. Securities & Exchange Commission (SEC).
Secondary Public Offerings
A secondary public offering (SPO) is a secondary issuing of common shares after a company's initial public offering (IPO).
Sell-Side Analysts
Sell-side analysts work for institutions such as an investment bank or brokerage firm, tracking the performance of various securities for clients.
Shanghai Stock Exchange Composite Index
The Shanghai Stock Exchange Composite Index (SSE) is the closest approximation to the S&P 500 Index or Dow Jones Industrial Average (DJIA) in the United States.
Short Selling
Short selling refers to the sale of a security not owned by the seller, motivated by the belief that the price of the security will drop.
Special Dividends
A special dividend is a cash payment made by a company to its shareholders that is separate from any regular dividend the company is currently paying.
Special Purpose Acquisition Company (SPAC)
SPACs give retail investors an opportunity to buy a company's stock in its early stages, differing from a traditional IPO.
Stochastic Momentum Index (SMI)
The Stochastic Momentum Index (SMI) is an indicator of momentum used in technical analysis as a refined alternative to a traditional stochastic oscillator.
Stock Portfolio Tracker
A portfolio tracker is an online tool that replaces manual spreadsheets by giving investors up-to-the-minute information on their investments.
Stock Split
A stock split is an action taken by a corporation through which they increase the number of their outstanding shares by dividing each share.
Stock Symbol
A stock symbol is an abbreviation used to identify publicly traded shares of a particular stock on a particular stock market.
Stocks Increasing Dividends
Income-oriented investors love dividend stocks that consistently increase their dividend over time.
Stop Order
A stop order is a trading mechanism that automatically issues a market order to buy or sell a stock once its price reaches a predetermined target.
Straddles
A straddle is an options trading strategy that takes advantage of the implied volatility of an underlying asset even without knowing the exact direction of movement.
Strangles
The strangle strategy in options trading is premised on the anticipation of strong price movement in one direction or another by a particular security.
Street Name
To have a security held in street name means an investor, although the real (beneficial) owner, will not have their name listed with the company's books.
Strike Price
The strike price is the price at which the buyer of the option can exercise their option, also called the exercise price.
Support Level
A support level is a technical indicator of price movement; when an asset is at a support level, it has reached a price floor.
Swap
A swap is a form of derivative instrument where two parties enter into a contract to exchange a sequence of cash flows on a specific date or at specific intervals.
Systematic Risk
Systematic risk is most simply defined as the inherent risk an investor takes by having money invested into a specific asset class.
T
Tariff
A tariff is a tax (also referred to as a customs duty) that is applied to foreign goods entering another country.
Technical Analysis
Technical analysis is the interpretation of the price action of a company's underlying stock using charts and statistical indicators to determine support/resistance, range, and trends.
Total Return
Total return is a performance metric that expresses the actual rate of return of an investment or portfolio over a period of time.
Trade Deficit
A trade deficit is a condition in which one country is importing more goods and services from other countries than it is exporting to them.
Trade War
A trade war is an economic policy instituted when one country responds to a trade imbalance by raising import tariffs on goods and services from other countries.
Trading Ex-Dividend
Trading ex-dividend means entering a trade prior to a stock's ex-dividend date and closing the trade shortly after the date.
Trading Strategy
A trading strategy in the stock market is simply a plan designed to make a profit by selling short or buying long.
Treasury Bonds
A treasury bond is a government bond issued by the United States Treasury Department, a fixed-rate security used to fund the national debt.
V
VIX (Volatility Index)
The VIX was introduced by the Chicago Board Options Exchange (CBOE) as a means of gauging the market's expectations of forward-looking volatility.
Volatile Stocks
Most-volatile stocks are companies that have had large price swings, leading to a significant gap between their intraday highs and lows.
Volume
Volume is the amount of an asset or security that changes hands over some period of time, often over the course of a day.
Volume Weighted Average (VWAP)
The volume weighted average price (VWAP) is a trading benchmark that gives the average price a security has traded at throughout the day, based on both volume and price.
Y
Yield Curve
The yield curve is a visual representation of the relationship between bond yields and the maturity length of different bonds.