Category: Stock Market Glossary

Holdings Turnover – It is the rate a mutual fund replaces its assets annually.

Real Return – An investment’s return after subtracting the rate of inflation.

Beta – Measures volatility of a security or portfolio as compared to the overall stock market. The lower the beta,…

Retained Earnings – The profit (earnings or net income) a company keeps (retains) and invests in its future growth.

Earnings Growth Rate – How quickly a company’s earnings grow from year to year. It is expressed as a percentage.

Unrealized Gains and Losses – Unrealized gains and losses are also commonly known as “paper” profits or losses. An unrealized…

Over-The-Counter Bulletin Board (OTCBB) – An electronic quotation system for many stocks that don’t qualify for listing on the national…

Corporate Action – When a public company initiates an action that will bring a change to its stock (e.g., stock…

Investment Bank – A firm that engages in the origination, underwriting, and marketing of new securities that are issued in…

Investment Banker – Someone who works with a business to determine how much money should be raised to accomplish the…

Investment Grade Bonds – Bonds that are sold by a very reliable issuer, the government, a large corporation, or a…

Investment Strategy – A plan designed to help you achieve your investment goals and depends on factors including risk tolerance…

Investor – Someone who purchases stocks, bonds, mutual funds, and other financial instruments in hopes the investments will increase in…

IOU – Means exactly as it sounds, “I Owe You.” It is an acknowledgment of a debt.

Leverage (Speculation) – Investing with money borrowed at a fixed rate of interest in the hopes of earning a greater…

Liability – A debt that a company owes and must repay in the future.

Limit Order – An order to buy or sell stock at a given (or better) price.

Liquidate – Liquidate means converting property or assets into cash or cash equivalents by selling them on the open market…

Liquidity – The ease of converting an asset-in this case, stock-into money in a timely fashion with little or no…

Listing Requirement – Listing requirements are the standards a corporation must meet to have its stock or bonds traded on…