Category: Stock Market Glossary

Loan – A sum of money lent at interest.

Long Position – The condition of owning stock. The value of a long position is a stock’s current share price…

Long-Term Goals – Something you want to do in the future, usually several years away (e.g. saving for college, buying…

Loss – The amount by which a company’s costs exceed its sales.

Management Buyout – When the management of a corporation buys the controlling shares in the company.

Margin – Margin is the money borrowed from a broker to purchase an investment and is the difference between the…

Margin Account – A brokerage account that allows an investor to borrow money or stocks from a broker.

Margin Agreement – A legal agreement between a customer and a broker to open a margin account.

Margin Buying – Using money borrowed from a broker to buy stocks.

Margin Call – When the value of the collateral falls below the lender’s maintenance requirement, the lender generally will “make…

Market – Any method enabling people to buy and sell with one another. A market does not necessarily have a…

Market Capitalization (Market Cap) – The aggregate dollar value or market value of all of a company’s outstanding shares based…

Market Maker – A business that maintains bid and ask prices for a stock and stands ready to buy or…

Market Order – An order to buy or sell stock at the current market price.

Maturity – The date when the principal amount of a security is payable.

Merger – This occurs when two or more companies combine into one company while all the parties involved mutually agree…

Mid-Cap Stock – A mid-cap stock is one issued by a corporation whose market capitalization falls in a range between…

Moderate – Investments in growth stocks, particularly young companies with great potential.

Money – Anything widely accepted in exchange for goods and services (i.e. currency – coins and bills).

Money Market Account – A special savings account that usually pays interest rates comparable to those offered by money market…