Bull Market: A financial market in which prices are rising or are expected to rise.
Bear Market: A financial market in which prices are falling or are expected to fall.
Blue-Chip Stock: Shares in large, well-established, financially sound companies with a history of reliable performance.
Dividend: A portion of a company's earnings paid to shareholders, usually on a quarterly basis.
Earnings Per Share (EPS): A company's profit divided by the number of outstanding shares of its common stock.
Market Capitalization: The total value of a company's outstanding shares of stock, calculated by multiplying the share price by the number of shares outstanding.
P/E Ratio (Price-to-Earnings Ratio): A valuation ratio of a company's current share price compared to its per-share earnings.
IPO (Initial Public Offering): The process of offering shares of a private corporation to the public in a new stock issuance.
Liquidity: The degree to which an asset or security can be quickly bought or sold in the market without affecting its price.
Volatility: A statistical measure of the dispersion of returns for a given security or market index.
Short Selling: The practice of selling a security that the seller does not own, with the intention of buying it back later at a lower price.
Hedge Fund: An investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets.
Mutual Fund: An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.
ETF (Exchange-Traded Fund): A type of investment fund and exchange-traded product, traded on stock exchanges, much like stocks.
Derivative: A financial contract whose value is derived from the performance of an underlying asset, index, or entity.
Commodity: A basic good used in commerce that is interchangeable with other goods of the same type.
Yield: The income return on an investment, such as the interest or dividends received from holding a particular security.
Leverage: The use of borrowed money to increase the potential return of an investment.
Margin Call: A demand by a broker that an investor deposit further cash or securities to cover possible losses.
Arbitrage: The simultaneous purchase and sale of an asset to profit from a difference in the price.
Bearish: Expecting or predicting that the price of a security or market will decline.
Bullish: Expecting or predicting that the price of a security or market will rise.
Capital Gain: The increase in value of a capital asset or investment that gives it a higher worth than the purchase price.
Capital Loss: The decrease in value of a capital asset or investment that gives it a lower worth than the purchase price.
Dividend Yield: A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.
Equity: The value of an ownership interest in a property or business, after all debts and liabilities have been deducted.
Futures Contract: A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.
Growth Stock: A stock of a company that is expected to grow at an above-average rate compared to other companies in the market.
Income Stock: A stock that pays regular dividends, providing a steady income to investors.
Index Fund: A type of mutual fund or ETF designed to replicate the performance of a specific index, such as the S&P 500.
Leverage: The use of borrowed funds to increase the potential return of an investment.
Market Order: An order to buy or sell a stock immediately at the best available current price.
Mutual Fund: An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.
Options: Financial derivatives that give the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.
Penny Stock: A stock that trades at a very low price, usually outside of the major market exchanges.
Preferred Stock: A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.
Put Option: A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.
Risk: The possibility of losing something of value, such as money or time, or the potential for an investment to yield a lower than expected return.
Short Position: The sale of a security that the seller does not own, with the intention of buying it back later at a lower price.
Stop-Loss Order: An order placed with a broker to buy or sell once the stock reaches a certain price, to limit losses or protect profits.
Technical Analysis: A trading discipline used to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.
Treasury Bond: A government debt security with a fixed interest rate and maturity date, issued by the U.S. Department of the Treasury.
Volatility: A statistical measure of the dispersion of returns for a given security or market index.
Yield: The income return on an investment, such as the interest or dividends received from holding a particular security.
Zero-Coupon Bond: A bond that is sold at a discount and does not pay periodic interest payments, but is redeemed at face value at maturity.
