Category: Stock Market Glossary

Rate of Return – Your annual income on an investment.

Record Date – Date set by a company on which an individual must own shares to be eligible to receive…

Return – The increase in an investment’s value during a year expressed as a percentage of the investment’s value at…

Reverse Split – When a company decreases the number of outstanding shares thereby increasing the price per share. It does…

Risk – The chance of losing all or part of the value of an investment.

Risk-Averse – An investor who will trade off a higher return for the benefit of greater certainty of return.

Risk Management – Having strategies that help mitigate risks associated with your investments.

Risk Tolerance – A measure of how much risk (loss) you are willing to take. It is based on several…

Rule of 72 – A calculation used to find the number of years required to double your money at a…

Sales – The amount of money a company receives by selling a product or service. Also called revenue.

Saving – Money set aside for future use such as emergencies or fun.

Savings Account – A deposit account at a bank or similar institution that earns interest.

Scam – A fraudulent business scheme; a swindle.

Sector – A broad group of stocks, often in one industry. Pharmaceutical companies are considered in the health care sector…

Securities and Exchange Commission (SEC) – An independent federal agency that oversees and regulates the securities industry in the United…

Securities Fraud – Also known as investment fraud, is a practice where investors are deceived and manipulated, resulting in theft.

Security – A financial instrument (stock, bond, option, etc.) that holds monetary value.

Sell – The term refers to the process of liquidating an asset in exchange for cash (Investopedia definition).

Settlement Date – When the transfer of a security from seller to buyer is complete, and the trade is considered…

Share – A share is a unit of ownership in a corporation or mutual fund.