(URL) Stock Market Glossary: Cost-Benefit Analysis
Cost-Benefit Analysis – This is a process of evaluating the costs and benefits of an investment decision. The analysis can…
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Learning to navigate the stock market as a new investor can be intimidating, but getting familiar with basic stock market terms can get you started sooner than you think. Understanding these fundamental concepts is key to making smart investing decisions, keeping a pulse on the market, and eventually taking on more complex trading strategies. Use the following terms to get a jump start on learning basic stock market vocabulary and create a strong foundation for your long-term wealth goals.
(URL) Stock Market Glossary: Current Assets
Current Assets – Resources that a company owns and could sell for cash during the year.
(URL) Stock Market Glossary: Current Liabilities
Current Liabilities – The amount of a company’s debts payable within a year.
(URL) Stock Market Glossary: Cyclical Stocks
Cyclical Stocks – Stocks of companies whose performance tends to mirror the economy. When the economy grows the stocks turn…
(URL) Stock Market Glossary: Day Order
Day Order – An order to buy or sell stock that expires at the end of the trading day.
(URL) Stock Market Glossary: Dealer Market
Dealer Market – Dealers (market makers) serve as intermediaries between buyers and sellers with the prices they are willing to…
(URL) Stock Market Glossary: Default
Default – Failure to pay principal or interest when due. Defaults can also occur for failure to meet non-payment obligations,…
(URL) Stock Market Glossary: Delisted
Delisted – A stock that has been delisted has been removed from an exchange and cannot be traded. A company’s…
(URL) Stock Market Glossary: Depreciation
Depreciation – The decline in value of an asset from wear and tear over a period of time, such as…
(URL) Stock Market Glossary: Distribution Date
Distribution Date – Date on which the dividend payment is made.
(URL) Stock Market Glossary: Diversification
Diversification – A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to…
(URL) Stock Market Glossary: Dividend Yield
Dividend Yield – A company’s latest annual dividend expressed as a percentage of its stock’s latest price. A stock has…
(URL) Stock Market Glossary: Dow Divisor
Dow Divisor – A special number used to calculate the Dow Jones Industrial Average.
(URL) Stock Market Glossary: Dow Jones Industrial Average (DOW)
Dow Jones Industrial Average (DOW) – The best-known measure of stock prices consisting of 30 large, well-known companies in major…
(URL) Stock Market Glossary: Earnings
Earnings – The amount of money that remains after subtracting the company’s operating and non-operating expenses from its revenue. Earnings…
(URL) Stock Market Glossary: Earnings Per Share (EPS)
Earnings Per Share (EPS) – A company’s profit divided by the number of shares outstanding.
(URL) Stock Market Glossary: Economic Cycle
Economic Cycle – The pattern of changes in economic performance. There are four phases in the economic cycle (expansion, peak,…
(URL) Stock Market Glossary: Election Cycle
Election Cycle – The theory that the economy rises and declines based on the year of a president’s term in…
(URL) Stock Market Glossary: Emergency Funds
Emergency Funds – Money saved to be used for unforeseen events.