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The accumulation of interest, income, expenses, or other items that have been earned or incurred but not yet paid or received.
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Review the most common terms and definitions in the field of investing and trading securities.
The accumulation of interest, income, expenses, or other items that have been earned or incurred but not yet paid or received.
A measure of an investment’s performance relative to a market index, indicating the excess return generated by the investment manager’s skills.
Investments other than traditional asset classes like stocks, bonds, and cash, including private equity, hedge funds, real estate, and commodities.
The process of gradually paying off a debt or loan through regular payments that include both principal and interest.
A comprehensive report issued by a company to its shareholders at the end of each fiscal year, containing financial and operational information about the company’s performance.
The practice of exploiting price differences in different markets for the same asset to make a profit without risk.
The lowest price at which a seller is willing to sell a security or financial instrument in the market.
The strategic distribution of investments among various asset classes such as stocks, bonds, and cash equivalents to optimize risk and return.
A term used to describe an option where the strike price is equal to the current market price of the underlying asset.
The use of computer programs and algorithms to execute trading orders in financial markets automatically.
Financial statement showing a company’s assets, liabilities, and shareholders’ equity at a specific point in time.
A unit of measure used in finance to describe the percentage change in interest rates or yields
A market condition where prices are falling or expected to fall, often accompanied by pessimism and investor selling.
The highest price a buyer is willing to pay for a security or financial instrument.
A mathematical model used to calculate the theoretical price of options based on various factors such as underlying asset price, time to expiration, and volatility.
Shares of well-established, financially stable companies with a history of reliable performance and dividends.
A fixed-income investment where an investor lends money to an entity (government or corporation) in exchange for periodic interest payments and return of the bond’s face value at maturity.
The process of buying and selling financial instruments on behalf of clients in exchange for a fee or commission.
A market condition characterized by rising prices and investor optimism.
A type of order to buy a security at or below a specified price.
A financial contract giving the holder the right, but not the obligation, to buy an asset at a predetermined price within a specified period.
A financial chart that displays the open, high, low, and close prices for a specific time period, often used in technical analysis.
Profit earned from the sale of an asset, such as stocks or real estate, resulting in a higher selling price than the purchase price.
The movement of money in and out of a business, including operating, investing, and financing activities.
Assets or property offered as security for a loan or credit.
Fee charged by a broker or financial advisor for executing transactions or providing services.
Physical goods or raw materials such as gold, oil, wheat, etc., traded on exchanges.
Assessment of an individual’s or entity’s creditworthiness based on their financial history and ability to repay debts.
Digital or virtual currencies secured by cryptography, such as Bitcoin or Ethereum.
Quotation or pricing structure used in the foreign exchange market to represent the exchange rate between two currencies.
Private forums or exchanges for trading securities with transactions hidden from the public market.
Buying and selling financial instruments within the same trading day to take advantage of small price movements.
Temporary recovery or increase in the price of a declining asset, followed by a continued decline.
A financial ratio indicating the proportion of debt used to finance a company’s assets relative to shareholders’ equity.
A general decrease in prices of goods and services within an economy.
A financial contract whose value is derived from an underlying asset or group of assets.
Spreading investments across different asset classes or securities to reduce risk.
A portion of a company’s earnings distributed to its shareholders.
A financial ratio showing the annual dividend income relative to the current market price of the security.
An investment strategy involving regular fixed investments in securities regardless of market conditions.
The portion of a company’s profit allocated to each outstanding share of common stock.
Ownership interest in a company represented by shares of stock.
An investment fund traded on stock exchanges, holding assets like stocks, bonds, or commodities.
A bond issued in a currency other than the currency of the country or market in which it is issued
The date when a buyer of a security is not entitled to receive the next dividend payment.
The value of one currency expressed in terms of another currency.
The completion of a buy or sell order in the market.
The price at which the holder of an option can buy or sell the underlying asset.
The percentage of a fund’s assets used to cover its expenses.
A type of moving average that gives more weight to recent prices in its calculation.
The estimated worth of an asset or liability based on current market conditions.
The estimated worth of an asset or liability based on current market conditions.
A type of order that must be executed immediately in its entirety or cancelled.
A type of order that must be executed immediately in its entirety or cancelled.
A professional who helps individuals manage their finances and plan for the future.
A professional who helps individuals manage their finances and plan for the future.
The total number of shares available for trading of a particular stock.
The total number of shares available for trading of a particular stock.
The global market for trading currencies.
The global market for trading currencies.
A customized contract between two parties to buy or sell an asset at a specified future date and price
A customized contract between two parties to buy or sell an asset at a specified future date and price.
The cash generated by a company’s operations after accounting for capital expenditures.
The cash generated by a company’s operations after accounting for capital expenditures.
Illegally trading on advance, non-public information to capitalize on the expected impact of the upcoming transaction.
Illegally trading on advance, non-public information to capitalize on the expected impact of the upcoming transaction.
Evaluation of a security’s intrinsic value by analyzing economic factors, financial statements, and other qualitative and quantitative factors.
Evaluation of a security’s intrinsic value by analyzing economic factors, financial statements, and other qualitative and quantitative factors.
Financial contracts obligating the buyer to purchase or the seller to sell an asset at a predetermined price and date in the future.
Financial contracts obligating the buyer to purchase or the seller to sell an asset at a predetermined price and date in the future.
A measure of the rate of change in an option’s delta concerning the price of the underlying asset.
A measure of the rate of change in an option’s delta concerning the price of the underlying asset.
A significant difference between a security’s closing price and its opening price on the following day
A significant difference between a security’s closing price and its opening price on the following day.
A complete record of a company’s financial transactions.
A complete record of a company’s financial transactions.
A U.S. law that separated commercial and investment banking activities to prevent conflicts of interest
A U.S. law that separated commercial and investment banking activities to prevent conflicts of interest.
A technical chart pattern where a short-term moving average crosses above a long-term moving average, indicating a bullish trend
A technical chart pattern where a short-term moving average crosses above a long-term moving average, indicating a bullish trend.
An order to buy or sell a security at a specified price that remains open until it’s executed or cancelled
An order to buy or sell a security at a specified price that remains open until it’s executed or cancelled.
Debt securities issued by a government with a promise of repayment at a specified future date.
Debt securities issued by a government with a promise of repayment at a specified future date.
Bonds issued to finance environmentally friendly projects or activities.
Bonds issued to finance environmentally friendly projects or activities.
The total value of goods and services produced within a country’s borders in a specific time period.
The total value of goods and services produced within a country’s borders in a specific time period.
Shares in a company expected to grow at an above-average rate compared to other companies
Shares in a company expected to grow at an above-average rate compared to other companies.
A reduction applied to the value of an asset for collateral purposes, reflecting a discount from its market value.
A reduction applied to the value of an asset for collateral purposes, reflecting a discount from its market value.
A technical analysis chart pattern indicating a potential reversal in a security’s price trend.
A technical analysis chart pattern indicating a potential reversal in a security’s price trend.
An investment fund that employs various strategies to generate high returns for its investors
An investment fund that employs various strategies to generate high returns for its investors.
Trading strategy that uses powerful computers to execute a large number of trades at very high speeds.
Trading strategy that uses powerful computers to execute a large number of trades at very high speeds.
A bond with a higher yield due to its higher risk of default compared to investment-grade bonds.A bond with a higher yield due to its higher risk of default compared to investment-grade bonds.
A bond with a higher yield due to its higher risk of default compared to investment-grade bonds.
A term derived from a misspelling of “hold,” indicating a long-term investment strategy without selling regardless of market fluctuations.
A term derived from a misspelling of “hold,” indicating a long-term investment strategy without selling regardless of market fluctuations.
The duration an investor holds a particular investment before selling it.
The duration an investor holds a particular investment before selling it.
Comparison of financial data over a series of reporting periods to identify trends and patterns.
Comparison of financial data over a series of reporting periods to identify trends and patterns.
The minimum rate of return required by an investor or firm for an investment to be worthwhile.
The minimum rate of return required by an investor or firm for an investment to be worthwhile.
An extremely high and typically accelerating inflation rate.
An extremely high and typically accelerating inflation rate.
An estimation of a security’s potential future volatility derived from its option prices.
An estimation of a security’s potential future volatility derived from its option prices.
A measurement of the value of a section of the stock market, usually representing a specific market or sector
A measurement of the value of a section of the stock market, usually representing a specific market or sector.
The rate at which the general level of prices for goods and services is rising, eroding purchasing power.
The rate at which the general level of prices for goods and services is rising, eroding purchasing power.
The first sale of stock by a private company to the public, making it a publicly-traded entity.
The first sale of stock by a private company to the public, making it a publicly-traded entity.
The illegal practice of trading stocks based on material, non-public information.
The illegal practice of trading stocks based on material, non-public information.
Large organizations that invest on behalf of others, such as pension funds, mutual funds, and insurance companies.
Large organizations that invest on behalf of others, such as pension funds, mutual funds, and insurance companies.
The percentage at which interest is charged or paid on money lent or borrowed.
The percentage at which interest is charged or paid on money lent or borrowed.
The actual value of a company or an asset based on fundamental analysis, not influenced by market conditions.
The actual value of a company or an asset based on fundamental analysis, not influenced by market conditions.
A financial institution that assists companies in raising capital through underwriting or acting as an intermediary.
A financial institution that assists companies in raising capital through underwriting or acting as an intermediary.
A contractual restriction preventing company insiders from selling their shares for a specified period after an IPO.
A contractual restriction preventing company insiders from selling their shares for a specified period after an IPO.
In finance, it refers to a situation where a country’s trade balance initially worsens after the currency depreciates
A trader or stockbroker specializing in making quick transactions to profit from short-term price movements.
High-yield, high-risk debt securities issued by companies with a lower credit rating.
A type of chart used in technical analysis in which the thickness of the lines represents price movements.
A Japanese technical analysis tool used to determine the market price’s long-term trend.
The Kaufman Adaptive Moving Average, a trend-following indicator used in technical analysis.
Foreign bonds issued in the Australian market by non-Australian entities.
A measure of an option’s sensitivity to changes in the price of the underlying asset.
Illicit payments made to someone in return for facilitating a transaction or providing favorable treatment.
An additional feature in a financial security that provides the possibility of increased returns or benefits.
A technical analysis indicator used to determine long-term trends in financial markets.
A statistical measure used in finance to describe the distribution of returns from an investment.
A strategy where investments or securities with different maturities are purchased to spread risk and potentially increase returns.
The benchmark interest rate at which banks lend to one another in the international interbank market.
The ease with which an asset can be bought or sold in the market without causing a significant change in its price.
The ratio of a loan amount to the value of the asset purchased, commonly used in mortgage lending.
Holding an asset with the expectation that its value will increase over time.
Demand by a broker for additional funds or securities when the value of an account falls below a certain level.
A firm or individual that provides liquidity by buying and selling securities on a continuous basis.
An order to buy or sell a security at the best available price in the current market.
The risk of losses due to movements in market prices such as interest rates, exchange rates, or commodity prices.
The consolidation of companies through various financial transactions like mergers, acquisitions, or takeovers.
Selling or purchasing an option contract without owning the underlying asset.
An index representing the performance of more than 2,500 stocks listed on the NASDAQ stock exchange.
The difference between an individual’s assets and liabilities, representing their financial position.
The face value of a security or asset, typically stated on the security itself.
A loan or advance for which interest or principal payments are overdue for a specific period.
The total number of outstanding derivative contracts, such as options or futures, at the end of a trading day.
A listing of all available options contracts for a particular security, including their strike prices and expiration dates.
An option that has no intrinsic value because its strike price is unfavorable compared to the market price of the underlying asset.
A derivative contract traded directly between parties without going through an exchange
A situation where the price of a security or asset rises too quickly and is expected to reverse or correct.
Compensation paid by market makers or brokers to other brokers for directing orders to them for execution.
A technical indicator used in financial markets to determine potential price reversals.
A fraudulent investment scheme that pays returns to earlier investors using funds from newer investors rather than profits.
A collection of financial assets, such as stocks, bonds, and cash equivalents, held by an investor or entity.
A professional responsible for making investment decisions and managing a portfolio of securities.
The process by which the price of a security is determined in a free market system based on supply and demand.
A valuation ratio calculated by dividing a company’s stock price by its earnings per share.
The market where newly issued securities are bought and sold for the first time, usually through an IPO.
Ownership or interest in a company not publicly traded on a stock exchange.
A financial metric indicating a company’s profitability by measuring the percentage of revenue that becomes profit.
Selling securities to realize gains after their prices have risen.
Trading securities, commodities, or other financial instruments using a firm’s own funds rather than clients’ funds.
A document filed with the SEC that discloses information related to a company’s annual meeting, management compensation, and more.
The sale of securities to the public, typically through an IPO or follow-on offering.
A financial contract giving the holder the right, but not the obligation, to sell an asset at a predetermined price within a specified period.
A type of dividend subject to the capital gains tax rate instead of the ordinary income tax rate.
An entity, such as a bank or insurance company, eligible to invest in securities not registered with regulatory authorities.
A monetary policy in which a central bank purchases government securities or other securities to increase the money supply and stimulate the economy.
The maximum limit set by a country on the quantity of a particular product that can be imported or exported.
The second currency in a currency pair used in the foreign exchange market.
A rapid increase in the price of a security or market after a period of decline or consolidation.
The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s initial cost.
A company that owns, operates, or finances income-generating real estate.
A statistical method used to predict the relationship between variables in financial markets.
A price level at which an asset tends to stop rising due to selling pressure.
A measure of the profitability of an investment, calculated as the ratio of the investment’s gain to its cost.
The process of identifying, assessing, and mitigating potential risks to an investment or business.
The process of extending the settlement or expiration date of a financial contract or agreement.
A standard unit of trading consisting of 100 shares of a stock or multiples thereof. Risk-Free Rate: The theoretical rate of return of an investment with zero risk, often measured by the yield on government bonds.
Financial instruments such as stocks, bonds, options, and derivatives that can be traded in financial markets.
The U.S. regulatory agency overseeing the securities industry, enforcing securities laws, and protecting investors.
The date by which a securities transaction must be finalized, and payment or delivery must be made.
Selling borrowed securities in anticipation of buying them back at a lower price, profiting from the price difference.
The difference between the bid and ask prices of a security or asset.
A measurement of the value of a section of the stock market, usually representing a specific market or sector.
A corporate action that increases the number of outstanding shares while reducing their price proportionally.
An order placed to buy or sell a security once the price reaches a certain level, limiting the loss or locking in a profit.
A price level at which an asset tends to stop declining due to buying pressure.
A financial derivative contract in which two parties exchange financial instruments or cash flows.
The projected price of a security as determined by an analyst or investor’s valuation model.
A strategy of selling losing investments to offset capital gains and reduce taxes.
Analysis of past market data, primarily price and volume, to forecast future price movements.
A market with low trading activity and liquidity, often resulting in higher volatility.
A unique series of letters representing a particular stock or security listed on an exchange.
The concept that money available today is worth more than the same amount in the future due to its earning potential
The physical location where traders execute buy and sell orders in an open outcry or electronic system.
A stop-loss order that trails the market price by a specified percentage or dollar amount.
Long-term government debt security with a maturity of more than 10 years, issued by the U.S. Department of the Treasury.
A measure of the volume of shares traded in a portfolio over a specified period.
The financial asset on which a derivative contract is based, such as stocks, bonds, commodities, or indices.
A financial institution or individual that assesses and assumes the risk of another entity’s securities issuance.
A type of investment fund where investors’ money is pooled and managed collectively.
A system where banks provide a wide range of financial services, including commercial banking, investment banking, and insurance.
An increase or decrease in the value of an asset that has not yet been sold or realized.
An investment strategy that focuses on buying undervalued stocks believed to have strong potential for growth.
An annuity contract where the payment amount varies based on the performance of underlying investments.
Investment provided to startups and small businesses with growth potential in exchange for ownership stakes.
A measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.
The degree of variation of a trading price series over time, indicating the market’s instability.
A street in New York City where the New York Stock Exchange and many financial institutions are located.
A derivative security giving the holder the right to buy underlying securities at a specified price and time.
A company or individual that rescues another company from a hostile takeover by acquiring it.
Banking services offered to large corporations, institutions, and other banks rather than individual customers.
A method of electronically transferring funds from one entity to another.
An electronic trading system used by the Frankfurt Stock Exchange in Germany.
A measure of the annualized yield of an investment considering irregular cash flows and their timings.
A graphical representation of the yields on bonds of different maturities.
The difference between yields on differing investments, often used as a measure of risk.
A statistical measurement used to predict the likelihood of bankruptcy for a company.
A bond that pays no periodic interest but is sold at a discount and redeemed at face value at maturity.
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