S&P 500   4,145.19
DOW   32,803.47
QQQ   321.75
China July exports rise, with trade surplus at record-high
Shift in war's front seen as ships cleared to leave Ukraine
What's in Democrats' big bill? Climate, health care, savings
Demand for grocery delivery cools as food costs rise
Transit woes mount for Boston's beleaguered subway riders
What to Expect from the Markets in a Recession
Dems push Biden climate, health priorities toward Senate OK
S&P 500   4,145.19
DOW   32,803.47
QQQ   321.75
China July exports rise, with trade surplus at record-high
Shift in war's front seen as ships cleared to leave Ukraine
What's in Democrats' big bill? Climate, health care, savings
Demand for grocery delivery cools as food costs rise
Transit woes mount for Boston's beleaguered subway riders
What to Expect from the Markets in a Recession
Dems push Biden climate, health priorities toward Senate OK
S&P 500   4,145.19
DOW   32,803.47
QQQ   321.75
China July exports rise, with trade surplus at record-high
Shift in war's front seen as ships cleared to leave Ukraine
What's in Democrats' big bill? Climate, health care, savings
Demand for grocery delivery cools as food costs rise
Transit woes mount for Boston's beleaguered subway riders
What to Expect from the Markets in a Recession
Dems push Biden climate, health priorities toward Senate OK
S&P 500   4,145.19
DOW   32,803.47
QQQ   321.75
China July exports rise, with trade surplus at record-high
Shift in war's front seen as ships cleared to leave Ukraine
What's in Democrats' big bill? Climate, health care, savings
Demand for grocery delivery cools as food costs rise
Transit woes mount for Boston's beleaguered subway riders
What to Expect from the Markets in a Recession
Dems push Biden climate, health priorities toward Senate OK

Stock Market Terms

Here are terms both novice investors and seasoned pros should understand

Every profession, passion project, and hobby has its own terminology. The same is true of the stock market. So if you’re going to invest in the stock market, it’s important to know some of the basic terminologies. Understanding these terms can help provide insight into how the stock market works.

In this article, we’ll review some basics about investing in the stock market including how to go about buying stocks. At the end of the article, we’ve compiled a master list of stock market terms. We encourage you to return to this link regularly as a handy reference.

What is the Stock Market?

Let’s start with a basic question, what is the stock market? The key thing to understand is that “the market” is not one single entity. It’s a marketplace of all the individuals and institutions that buy and sell stocks. These investors do their trading on several stock market exchanges. Some of the most commonly referenced exchanges are the New York Stock Exchange (NYSE) and the NASDAQ.

Stocks listed on an exchange can be bought and sold. These stocks represent shares of ownership in a company. Companies are willing to sell shares of their company in order to raise capital to fund their own operating expenses or grow the business.

Companies with stocks for purchase on a publicly-traded market must follow certain rules set forth by regulatory agencies like the SEC (Securities and Exchange Commission). They must be transparent about their accounting and make their business operations public.

Investors can also purchase stocks privately—they don’t have to be traded on a trading platform like the NYSE or the NASDAQ. However, this carries a bit more risk because privately held companies are not subject to the same regulatory requirements as publicly traded companies.

How to Buy and Sell Stocks

Despite the myriad complexities of the stock market, learning how to buy stock is not difficult. You can go online or onto an app on your phone, search for a company, and place your trade. The brokerage firm may or may not charge you a small, nominal fee to make the trade. These stocks then go into your portfolio. You can hold on to them as long as you like or sell them when you feel the time is right.

That’s all there is to it.

On the back end, it’s a little more complicated, but you don’t have to worry about any of it. In case you’re curious though, once you indicate an interest in buying or selling a certain stock, a broker finds a buyer or seller on your behalf. Market makers used to pack onto the floor of the stock exchange and fight through the frenzied mob of other stock brokers until they connected with a willing party to the transaction. Today, most matchmaking between buyers and sellers is done electronically.

But as mentioned, from your end, there is not much to it other than clicking on which stocks you want to buy and hitting submit.

The stocks you buy will be common shares. These shares give holders voting rights in the activities of the company. If you own enough shares, you can even effectively take ownership of the company.

There are also preferred shares of stock, which are not readily available to retail investors. These preferred stocks do not carry voting rights, but they do get preferential treatment in regard to dividends, receiving company payouts first. If the company is liquidated, preferred stockholders will also get their money first.

How to Understand the Different Objectives of Stock Trading

Stock trading is the act of buying or selling stock. Every time an investor buys shares, or fractional shares, of a stock, they make a stock trade. But not all stock traders have the same objectives.

Some investors buy shares of stock with the intention of holding on to them for long periods of time. This is called taking a long position. The objective is to let the stock price appreciate and/or collect dividends. Taking a long position doesn’t necessarily mean these investors are holding the stock forever. However, it’s generally understood that a long position means holding the stock for more than 12 months.

There is nothing wrong with this strategy. In fact, it’s been used by great investors like Warren Buffet to build sizeable wealth.

Other investors take a more active approach to stock trading. Their objective is to capitalize on market fluctuations. The strategy is to buy low and sell high as stock prices go up and down.

Active traders place trades at least 10 times per month. They may follow current events, general market trends, and company activity to time their moves.

Day traders are even more active traders. As the name implies, day traders spend the whole day buying and selling stocks. They may not even need to invest attention in global, market, or company events—they can just watch stock prices. In fact, the most experienced traders can even just rely on stats, trends, and math to make their move.

Of course, without a working, ingrained knowledge of stock trading terminology, everything they know would just be theory. After all, how would a trader know how to make the right type of transaction if they don’t even know what it’s called?

Why Every Investor Should Understand Stock Trading Terms

You may not be a day trader, but if you have any interest in dabbling with stocks, you need to know the rules of the game. Even if you’re a passive investor who invests 10% of their income into a mutual fund managed by someone else, you should get to know stock market trading terms. For one thing, you’ll be able to have a more nuanced conversation with your financial advisor. But you’ll also be more likely to identify additional opportunities for income growth as they become available.

If you are an active investor, knowing these stock terms will help you see additional pathways for increasing your cash flow. When there’s a term you don’t understand, you can go down that proverbial rabbit hole and learn a whole new way of trading.

Just keep in mind that the more you know, the more you can leverage your knowledge into profit. The basic stock trading terms are your starting point for this growth.

Stock Trading Terms: Master List of Essential Trading Terms

Year-over-Year (YOY) - In this article, we’ll help investors understand what the year-over-year comparison attempts to measure, the benefits of this measurement to investors, as well as how to calculate YOY when it’s not readily provided
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.
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.
52-week Lows - By using the 52 week low indicator, you can determine which stocks might be underpriced and are likely to increase in value. Strong financial gains are well within your reach, even if the market is not moving in a bullish direction. Though this indicator alone will require additional analysis in order to be truly effective, it is certainly one of the most useful—and accessible—indicators currently in use.
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 it's 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.
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
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.
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.
Bear Trap - This article defines what a bear trap is and explains how the practice of short selling can amplify a bear trap. It also provides strategies to help investors avoid falling into a bear trap
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 - With the rapid worldwide spread of COVID-19 making hourly headlines, the term black swan is becoming a recurring theme. 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 - Although there is no single definition, investors typically agree that a blue-chip stock has a market capitalization of over $5 billion dollars
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.
Breakout Stocks - Trading breakout stocks is a popular strategy of active investors. This is a form of range trading in which traders are looking for a stock or asset class (e.g. commodity, cryptocurrency, etc.) that suddenly breaks outside of a well-defined range.
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.
Bull Trap - This article defines what a bull trap is and the role of fundamental analysis in causing investors to fall prey to this false signal. It also provides strategies that can help you avoid falling into a bull trap
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.
Buyback - In a stock buyback, or share repurchase program, a company repurchases their shares in the marketplace
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.
CAC 40 Index - The CAC 40 is a market-cap weighted index of 40 of the 100 companies with the highest market cap on the Euronext, similar tp the Dow Jones Industrial Average.
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 (typically banks and credit unions) 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 that has been 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. This includes institutional investors (such as the large investment banks and stock analysts) but is also available to 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% (although it could be more) from its most recent peak.
Cost Basis - As part of every investor’s due diligence, they should pay attention to the cost basis of every security they purchase. In this article we’ll take a deep dive into the concept of cost basis and the different methods used to determine cost basis. We’ll explain how cost basis is different from tax basis. And we’ve included a separate section for cryptocurrency investors to understand their cost basis in different scenarios.
Cost of Capital - The cost of capital is the amount of money needed to make a capital budgeting project worthwhile.
Cost of Debt - In its simplest form, cost of debt is the effective interest rate that a company will pay on all of its debt obligations. The cost of debt is 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, the cost of equity is the expected return that they will get in exchange for their investment in a business in the form of 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.
Cyclical Stocks - Cyclical stocks are stocks of those companies that move with a high correlation to the broader economy. Used strategically, cyclical stocks can help investors generate returns that outperform the market when the economy is going good.In this article we’ll take a closer at look at cyclical stocks including defining the different categories of cyclical stocks and highlighting the benefits and the risks of investing in these stocks. We’ll also look at how investors can manage that risk.
Day Trading - Day trading is the practice of buying and selling securities within a single day. Although 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. After a gap where the price of an asset falls significantly from its previous high, 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. The value of the derivative is determined by the value of an underlying asset such as stocks, bonds, commodities (oil, wheat, soybeans, etc.) or precious metals (gold, silver, etc.)
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 when referring to the interest rate the Federal Reserve Banks charge to financial institutions who borrow money from their overnight discount window.
Disruptive Technology - In this article, we’ll identify examples of disruptive technology and give investors some key takeaways that can help them decide whether a disruptive technology has staying power
Diversification - Diversification in investing is the method of allocating capital that reduces the exposure to any one particular asset or risk. The strategy towards diversification is to reduce risk or volatility by investing in a variety of assets.
Dividend Achievers - Dividend achievers are a group of companies that have increased their dividend payout for 10 consecutive years. Dividend achievers fall into a special category of companies that make issuing, and growing, dividend payments a priority.
Dividend Aristocrat Index - The dividend aristocrat index is a group of blue-chip S&P 500 companies that have 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, but it is one tracked by a large portion of the market
Dividend Reinvestment Plan (DRIP) - A dividend reinvestment plan (DRIP) is a program that gives investors the opportunity to reinvest their cash dividends.
dividend stocks - Many investors know the importance of having a base of dividend stocks. These stocks provide investors with a regular source of income that they can either receive as supplemental income or that they can reinvest to increase their position in the stock.
Dividend Stocks - Dividend investing focuses either on collecting high dividend yield stocks or stocks with fast-growing dividends. Dividend stocks are stocks issued by companies who redistribute a portion of their profits to their shareholders on a regular basis.
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.
Dividend Yield Calculator - Use MarketBeat's free dividend yield calculator to find the dividend yield of any stock.
Dogs of the Dow - The Dogs of the Dow is a dividend investing strategy that has a goal of beating the Dow Jones Industrial Average (DJIA) on an annual basis 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) - Dow Jones Industrial Average (DJIA) is 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. Although a dual-listed stock is sometimes referred to synonymously with a secondary listing (or cross-listing)
Earnings Per Share - Earnings per share (EPS) is an investment metric 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 follow when disclosing their company performance. These reports are issued quarterly during what investors call the “earnings season”.
EBITDA - EBITDA is one of the most important terms to understand when analyzing if a stock is a good buy. This article provides a brief explanation of the term EBITDA including why it matters to investors
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. These reports are 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 analysts cover.
Equity Income - Equity income is primarily referred to as income that is generated from stock dividends. A dividend is a portion of a company’s earnings that is paid back to shareholders in the form of cash.
ESG Score - A company’s environmental, social, and governance (ESG) score is a key component used by some investors and fund managers to determine the kind of company they will invest in.
Euro STOXX 50 Index - The Euro STOXX 50 Index is a market-weighted index of the 50 largest companies in the 11 Eurozone countries (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.
EV Stocks - The electric vehicle market is no longer a niche market. The EV market is no longer a niche market. What was once a side gig and nod to the green movement is fast-becoming a revolution and double-digit growth opportunity for investors.
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 an index fund.
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.
FAANG Stocks - FAANG is an acronym for five individual companies: Facebook, Amazon, Apple, Netflix, and Google (now Alphabet).
Federal Reserve - The Federal Reserve is the central bank of the United States of America. The Federal Reserve (The Fed) plays an important role in formulating and guiding our 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. A broker or financial planner working under a fiduciary standard is ethically bound to act in his or her client’s best interests.
FinTech - Cheaper. Better. Faster. We hear those words so often they become a cliché. But in the world of financial technology (or FinTech),
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 forex market is the largest in the world and has 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. It is looked at as a leading indicator of the UK economy.
Fundamental Analysis - Fundamental analysis, like technical analysis, attempts to predict which stocks are valuable and which are not, through analyzing a number of factors that affect stock prices such as sales, price to earnings (P/E) ratio, profits, earnings per share (EPS), and industry-specific factors.
Futures Contract - A futures contract, otherwise known as trading futures involves a buyer and a seller who enter a legally binding contract to trade a specified amount of an asset at a particular date for a specific price.
G-20 - The G-20 (an abbreviation for The Group of 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, therefore 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 that can be 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 investment and screen stocks according to the relevance of their preferences.
Google Finance Portfolio - Google Finance portfolio allows investors to add an investment portfolio or stock watchlist and track the day-to-day performance of current holdings, and get individual charting.
Green Investing - Green investing is an investment strategy that focuses on companies and financial instruments, such as mutual funds, ETFs and bond funds that have as their underlying assets companies or projects committed to the conserving natural resources, producing and discovering alternative energy sources, implementing clean air and water projects.
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 either a mutual fund or exchange-traded fund (ETF) that, as the name states, attempts to simultaneously achieve two goals for shareholders.
Growth Stocks - Growth stocks are companies that tend to increase in capital value rather than yield high income. This growth, in turn, allows their stock prices to rise, usually at a pace that will outperform the broader stock market.
Hang Seng Index (HSI) - The Hang Seng Index (HSI) is a market capitalization-weighted index that is made up of the 50 largest companies that trade on the Hong Kong stock exchange
Head and Shoulders Pattern - A head and shoulders pattern is a well-known technical indicator that identifies the emergence of a bullish-to-bearish trend. This article breaks down the components of the head and shoulders pattern and how to set up a trade based on the indicator
Hedge Funds - A hedge fund is an alternative to traditional forms of investing. Hedge funds use a pool of funds from investors who meet certain criteria in an effort to achieve a positive absolute return for their investors.
Hold Rating - Since no security will stay at a constant price, a hold rating is used to indicate a company’s price targets more than to provide a trading signal.
Holder of Record - A holder of record is the individual or entity that is considered to be the registered owner of a security.
Hostile Takeover - In this article, we define a hostile takeover, the tactics that an acquiring company may use, and the tactics that the target company may use to defend itself
Housing Bubble - In this article we’ll explain what a housing bubble means and review the steps retail investors should take to protect and grow their portfolios when the bubble is inflating and deflating.
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 (sometimes called a token offering) is a crowdfunding tool whereby an investor gives a business an existing cryptocurrency (usually Bitcoin or Ethereum) and in some cases traditional fiat currency (i.e. U.S. dollars) 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 to institutional (and on rare occasions) retail investors on a major stock exchange
Insider Trading - Insider trading is the action of buying or selling (“trading”) 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 - In simple terms, intrinsic value helps an investor determine whether a company’s stock is overvalued or undervalued. Determining a stock’s intrinsic value is one way to do this.
Inverted Yield Curve - An inverted yield curve is an indicator of a market condition in which long-term debt instruments (such as 10-year U.S. Treasury Bonds) have a lower yield than short-term debt instruments of the same credit quality (such as 2-year U.S. Treasury Bonds).
Leveraged Buyout (LBO) - A leveraged buyout (LBO) is a financial transaction, an acquisition of a company that is financed almost entirely by debt. The concept of a buyer being able to “take over” another entity without putting a lot of their capital at risk is why this is referred to as a “leveraged” buyout.
LIBOR - The London Interbank Offered Rate is the lowest rate that banks charge to lend to each other.
Limit Order - In this article, we’ll review limit orders in detail including the two most common type of limit orders, the benefits and risks of using limit orders, and the purpose of a stop-limit order.
Liquidity - Liquidity is a non-statistical measurement of how easily an asset (cash, securities, collectibles, real estate, etc.) can be bought or sold without affecting the asset’s price.
Lock-Up Period Expiration - A lock-up period (also known as a lock-up agreement) is a period of time (usually between 90-180 days) when investors are not allowed to buy or redeem shares.
Management Fee - A management fee is a compensation that is 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.
Marijuana Stocks - When looking at marijuana stocks, you’re looking for the same fundamentals that you would with any other business including their growth opportunities, the quality of the product, their location and their management team. 
Market Capitalization - Market capitalization is the market value of a company's outstanding shares and is used by the investment community in ranking the size of companies, as opposed to sales or total asset figures.
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 is given by a stock analyst to suggest a neutral outlook for a stock’s performance when compared to a benchmark index such as the S&P 500 or the Dow Jones Industrial Average (DJIA).
Market Timing - Market timing is an investing and trading strategy that involves shifting the assets inside a portfolio to take advantage of pricing inequities within different 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 who want income. reasonable growth are attracted to dividend stocks. Companies that issue dividends are not growth stocks
Most Active Stocks - The list of most active stocks can be a useful guide for investors. It is sometimes called a road map for day traders.
Moving Average (MA) - A moving average is a lagging indicator that is intended to give investors a view of where a security is trending without the outlying moves in price
Moving Average Convergence Divergence (MACD) - The moving average convergence divergence (MACD) oscillator is a technical analysis tool that is an indicator of momentum that provides traders with a visual indicator of buying and selling trends.
Municipal Bonds - Municipal bonds (otherwise known as “Munis”) are government-issued debt securities that are used to fund day-to-day operating expenses or to fund large-scale capital projects like building schools and repairing highways and bridges.
Mutual Funds - Every mutual fund is a company that combines money from multiple investors and invests those funds into securities that are dictated by the fund’s prospectus.
NASDAQ - The Nasdaq Stock Market or NASDAQ. is an American stock exchange. It is 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 (i.e. net assets) 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.
News Sentiment - News sentiment is one component of market sentiment and can be bullish or bearish. Keeping track of breaking news, and what that news may mean for a stock,
Nikkei 225 Index - The Nikkei index is a price-weighted (as opposed to market-cap-weighted index) that tracks the performance of Japan’s top 225 blue-chip companies.
No Load Funds - The standard load for most funds is somewhere between 4% and 6%. A no-load fund, by contrast, does not charge a sales fee for transactions.
Non-Fungible Token (NFT) - We’ll attempt to explain what an NFT is, when it originated, and how to purchase one. We’ll also wade into the debate about whether NFTs are collectibles or something more and present the opinions of NFT advocates and critics.
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 between a buyer and a seller in which the buyer of the contract is purchasing the right, but not the obligation, to buy or sell a quantity of a security at a specified price on or before a specified date.
Order Imbalance - This article defines how order imbalances impact stock trades including the immutable role of supply and demand and why the concept of liquidity is so important.
Outperform Rating - When an analyst gives a stock an outperform rating, it is an indication 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 or financial asset that have been authorized, issued and purchased by investors and are held by them. They have rights and represent ownership in the corporation by the person who holds the shares.
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.
Overweight - We’ll take a closer look at the overweight rating. In addition to defining what the rating means and where it fits on the spectrum of ratings, we’ll go over why it has advantages as well as limitations, we’ll look at why an analyst may issue an overweight rating and review the other meanings that the term overweight has for investors. 
P/E Growth (PEG) - The P/E growth ratio (or PEG) was developed and is used as a refinement of the standard P/E ratio that is used in fundamental analysis.
Pattern Day Trader - One of the most common rules that throw new traders off is the PDT rule, also known as the Pattern Day Trader rule
Percentage Decliners - Trading percentage decliners fit the traditional notion of buying low and selling high because of the theory that most stocks—similar to weather patterns and life events—will seek to find a stable state. That’s why buying stocks that show the biggest declines are often the ones with the biggest upside potential.
Percentage Gainers - Percentage gainers are the stocks that are up the most in terms of their percent change. Percentage gainers do not take into account trading volume.
Portfolio Manager - A portfolio manager is a financial professional or group of professionals who are responsible for purchasing and selling assets in a mutual fund, closed-end fund or exchange-traded fund (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 investment analyst’s or adviser’s estimate of the future price level of an asset, such as a stock, futures contract, commodity or exchange-traded fund (ETF).
Price to Earnings Ratio (PE) - The price to earnings ratio (P/E) measures its current share price relative to its per-share earnings. The ratio is used in valuing companies.
Price-Sales Ratio - Valuation is a term investors use to indicate the degree to which a stock is accurately priced. The price-sales ratio does this by comparing a company’s stock price to its revenues.
Price-to-Book Ratio - In this article, we'll explain how when used in the right context the price-to-book (P/B) ratio can help value investors identify quality stocks
Producer Price Index (PPI) - The Producer Price Index (PPI) is a weighted index of prices from the perspective of the producer or wholesaler. The index is released once a month by the Bureau of Labor Statistics (BLS).
Profit Margin - Profit margin is one of the most commonly used profitability ratios that help investors understand what percentage of their sales has become profitable.
Put Option - A put option is a financial contract between a buyer and a seller. The owner of the put buys the right, but not the obligation, to sell the buyer of the contract 100 shares of a given stock at an agreed-upon price on or before the option's expiration date.
Put Option Volume - Put option volume means the amount of buying or selling for a particular contract. It is usually similar to the volume of the underlying asset.
QQQ ETF - The QQQ ETF is also known as the PowerShares QQQ. This is one of the most widely held and traded exchange-traded funds (ETF)
Quantitative Easing - A quantitative easing program is one in which a nation’s central bank uses a supply of newly created money to purchase assets, typically in the form of government bonds, from institutions such as commercial banks, pension funds, and insurance companies.
Quick Ratio - The quick ratio (also known as the acid-test ratio) is a liquidity ratio that can be used as a stand-alone metric of liquidity or used to refine the current ratio.
Quiet Period - For businesses that are issuing an Initial Public Offering (IPO) that will allow them to enter the capital market and begin to trade their stock on a major exchange, the quiet period refers to the period of time (called the waiting period) that starts once the company and the underwriters of the IPO agree to proceed with the offering.
Quiet Period Expirations - Quiet period expirations are the dates upon which a company’s registration for an Initial Public Offering (IPO) has been approved by the Securities & Exchange Commission (SEC).
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 Real Estate Investment Trust (or 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 - Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates 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.
Retail Investor - In this article, we’ll define the retail investor and the pros and cons of being a retail investor. We’ll also go into more detail about why it’s never been a better time to be a retail investor
Retained Earnings - Retained earnings tell you how much profit a company has left over after they have paid out dividends. Retained earnings are different from revenue in the way that disposable income is different from salary.
Retirement Calculator - The MarketBeat retirement calculator requires you to provide some basic information and the calculator does the rest.
Return On Assets - The return on assets (ROA) ratio is one of several profitability measures that investors use to measure their return on investment (ROI).
Return on Equity (ROE) - Return on equity is a measurement of how efficient a company is in using its assets from their shareholders 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 deliberate corporate action where a company reduces the number of outstanding shares in the market while increasing the price per share by a proportional amount, therefore, keeping the market value of the shares 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 can help estimate the number of years required to double the money that is growing at a specified rate of return.
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 in the United States. It is 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 in the United States. The index tracks the performance of 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 United States Securities & Exchange Commission (SEC).
Secondary Public Offerings - A secondary public offering (SPO) is, as the name suggests, a secondary issuing of common shares after the company’s initial public offering (IPO).
Sell-Side Analysts - Sell-side analysts work for institutions (such as an investment bank or brokerage firm) that receive money from investors. The job of a sell-side analyst is to track the performance of various securities
Shanghai Stock Exchange Composite Index - The Shanghai Stock Exchange Composite Index (or 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, such as a stock, not owned by the seller or that the seller has borrowed.
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 dividends are typically the result of an earnings period in which a company received a windfall profit. Special dividends
Special Purpose Acquisition Company (SPAC) - SPACs give retail investors (i.e. individual investors) an opportunity to buy a company’s stock in its early stages. This is one way that a SPAC is different from a traditional IPO.
Stagflation - Stagflation is a combination of high unemployment combined with slow (or stagnant) economic growth. In this article, we'll look at the relationship between inflation and stagflation and why you can't have one without the other
Stochastic Momentum Index (SMI) - The Stochastic Momentum Index (SMI) is an indicator of momentum for a security. The SMI is used in technical analysis as a refined alternative to a traditional stochastic oscillator.
Stock Portfolio Tracker - A portfolio tracker is an online tool that takes the place of manual spreadsheets and paper statements by giving investors up-to-the-minute information on all of the investments that make up their portfolio.
Stock Split - A stock split is an action taken by a corporation through which they increase the number of their outstanding shares by dividing (or splitting) 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. A stock symbol may consist of letters, numbers or a combination of both.
Stocks Increasing Dividends - Income-oriented investors love dividend stocks. These investors love dividend stocks that consistently increase their dividend.
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 (i.e. the price movement) of an underlying asset even when they do not know the exact direction of that movement.
Strangles - The strangle strategy in trading options 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 (or beneficial) owner of the security 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 his option. This is why the strike price is called the exercise price.
Support Level - A support level is a technical indicator of price movement. When an asset is said to be at a support level, it has reached a price floor.
Swap - A swap is a form of a derivative instrument where two parties enter into a contract to exchange a sequence of cash flows. This exchange takes place on a specific date or at specific intervals as specified in the contract. 
Systematic Risk - Systematic risk is most simply defined as the inherent risk an investor takes by having money invested into a specific asset class.
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 various charts and statistical indicators to determine price support/resistance, range, and trends.
Total Return - Total return is a performance metric that expresses the actual rate of return of an investment or of a 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 all the other countries it trades with than it is sending to other country’s (i.e. exporting).
Trade War - A trade war is an economic policy that is instituted when one country responds to a trade imbalance by raising import tariffs on the goods and services from one or more countries.
Trading Ex-Dividend - Trading ex-dividend means to enter a trade prior to a stock’s ex-dividend date and closing the trade shortly after the date.
Trading Halts - In rare circumstances, it has been necessary to suspend trading in a particular stock, or in even rarer occasions, the entire market. This is called a trading halt and it’s done to protect investors of all stripes from outsize losses that can occur due to a lack of transparency.
Trading Strategy - A trading strategy in the stock market is simply a plan designed to make a profit in the stock market by selling short or buying long.
Treasury Bonds - A treasury bond is a government bond issued by the United States Treasury Department. Treasury bonds are one fixed-rate security that the United States issues to fund its national debt.
Upside/Downside - Analysts use either fundamental or technical analysis to arrive at conclusions about a stock’s future price movement. When a stock has upside, analysts will typically upgrade the stock. Conversely, when a stock has downside, an analyst may downgrade the stock.
VIX - Volatility Index - The VIX, or Volatility Index, 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 these companies' intraday highs and intraday lows.
Volume-weighted average price (VWAP) - Volume-weighted average price (VWAP) is a technical indicator used by traders to analyze the intraday price of a stock relative to volume throughout a trading session
Yield Curve - The yield curve is a visual representation of the relationship between bond yields and the maturity length of different bonds.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.