70 terms across fundamentals, technical analysis, derivatives, macroeconomics, and more. Updated daily as new entries are published.
AmortizationAmortization is the systematic reduction of a loan's outstanding principal over time through regular payments that also cover interest. In a
Ask SizeAsk size is the quantity of shares or contracts available for sale at the current best ask price, reflecting the size of the supply at the t
Authority BiasAuthority bias is a cognitive bias where people give disproportionate weight to the opinions or judgments of perceived authority figures. Th
Availability HeuristicThe availability heuristic is a mental shortcut in which people judge the probability of an event based on how easily examples come to mind,
BackwardationBackwardation is a futures-market condition where near-term futures prices are higher than longer-dated futures prices, resulting in a downw
Bollinger BandsBollinger Bands are a volatility-based technical indicator that plots a central moving average with upper and lower bands set a specified nu
Book Value Per ShareBook Value Per Share (BVPS) is a financial metric that shows the equity attributable to each outstanding common share, calculated as (Total
Bullish EngulfingA two-candle candlestick pattern where a smaller-bodied candle is followed by a larger-bodied candle that completely engulfs the first, sign
Capital ExpendituresCapital Expenditures (CAPEX) are funds used by a company to acquire, upgrade, or maintain physical assets with a useful life beyond one year
Cash Flow From Investing ActivitiesCash Flow From Investing Activities (CFI) is the net cash generated or used by a company in its investing activities during a period. It cov
Cash SettlementCash settlement is a method of settling a derivatives contract by paying the net cash value at expiration, rather than delivering the underl
Compliance OfficerA compliance officer is a person responsible for ensuring a company adheres to applicable laws, regulations, and internal policies. In many
Consumer Confidence IndexCCI (Consumer Confidence Index) is a monthly macroeconomic indicator published by The Conference Board that measures consumer sentiment by s
Covariance MatrixA covariance matrix is a square matrix that contains covariances between pairs of asset returns; the diagonal elements are variances and the
Creation BasketA creation basket is the fixed list of securities (and sometimes cash) that an authorized participant delivers to an ETF sponsor to create n
Credit SpreadThe credit spread is the yield premium of a non-government bond over a risk-free benchmark of comparable maturity, representing the extra co
Dark LiquidityDark liquidity refers to trading activity that occurs on non-displayed venues where order details are not visible to the public order book b
Deferred Tax AssetsDeferred tax assets (DTAs) are balance sheet assets that arise from deductible temporary differences, net operating loss carryforwards, or t
Discretionary OrderA discretionary order is an instruction in which the client authorizes a broker to determine certain execution details, such as price, time,
Dividend GrowthDividend Growth is an investment style that prioritizes stocks with a history of steadily increasing dividend payments, aiming to provide ri
Donchian ChannelThe Donchian Channel is a price-based technical indicator. It plots the highest high and the lowest low over a chosen look-back period, form
Dot PlotA dot plot is a chart showing policymakers’ projections for the federal funds rate; it is published as part of the Federal Open Market Commi
Downside RiskDownside risk is the potential for an investment or portfolio to decline in value from its current level due to adverse market conditions.
DrawdownDrawdown is the decline from a portfolio’s peak value to its subsequent trough before a new peak is reached, typically expressed as a percen
Economic Value Added (EVA)Economic Value Added (EVA) is a measure of a company's economic profit, calculated as after-tax operating profit minus the cost of capital t
Effective Tax RateThe effective tax rate (ETR) is the average rate at which pretax income is taxed. In corporate reporting, it is typically calculated as inco
Equivalent YieldEquivalent yield is the standardized annualized return on a fixed-income security, converting its cash flows and compounding into a common b
Exchange-Traded Fund (ETF)An Exchange-Traded Fund (ETF) is a security that tracks an index, sector, commodity, or other asset basket and trades on a stock exchange li
Market By Price (MBP)Market By Price (MBP) is a market data feed that displays the depth of the order book organized by price levels, showing the total quantity
Market On Open (MOO)Market On Open (MOO) is an order instruction to execute at the market's opening price, typically by participating in the exchange's opening
Modern Portfolio TheoryModern Portfolio Theory (MPT) is a framework for constructing portfolios that aim to maximize expected return for a given level of risk, or
Momentum TiltMomentum Tilt is an investment style that tilts a portfolio toward assets that have demonstrated stronger price momentum over a recent lookb
Money SupplyThe money supply is the total amount of monetary assets available in an economy at a given time, encompassing currency in circulation and va
Mortgage REITA Mortgage REIT (mREIT) is a real estate investment trust that primarily invests in mortgage loans and mortgage-backed securities. It earns
Policy RatePolicy rate is the interest rate set by a country's central bank to influence monetary policy and guide short-term borrowing costs.
Prepayment RiskPrepayment risk is the risk that borrowers repay principal on a fixed-income security earlier than expected, reducing the instrument's futur
Pro FormaPro forma is a term used to describe financial results prepared as if a defined event had occurred or as if certain adjustments were applied
Projection BiasProjection bias is a behavioral bias in which people assume that their current preferences, needs, or emotions will continue into the future
Putable BondA putable bond is a debt security that includes a put option allowing the bondholder to redeem the bond before its scheduled maturity at pre
Real Estate Investment TrustReal Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate and must distribute at least
Reinvestment RiskReinvestment risk is the risk that cash flows from a fixed-income investment, such as coupon payments or principal repayments, will be reinv
Revenue RecognitionRevenue recognition is the process of recording revenue in financial statements when the entity transfers control of goods or services to a
Reverse Repurchase AgreementA reverse repurchase agreement (reverse repo or RRP) is a short-term, collateralized financing arrangement in which a market participant buy
RhoRho is the rate at which an option's price changes in response to a 1 percentage point change in the risk-free interest rate, holding other
Rising Three MethodsA Rising Three Methods is a bullish continuation candlestick pattern consisting of a long bullish candle followed by several smaller candles
Rule 10b-5Rule 10b-5 is a provision under Section 10(b) of the Securities Exchange Act of 1934 that prohibits fraud in connection with the purchase or
Section 16(b) of the Exchange ActSection 16(b) of the Securities Exchange Act of 1934 requires insiders to disgorge profits realized from short-swing trades—purchases and sa
Securities Act of 1933The Securities Act of 1933, commonly known as the 1933 Act, is a U.S. federal law that governs initial offerings of securities. It requires
Security Market LineThe Security Market Line (SML) is a graphical representation from the Capital Asset Pricing Model (CAPM) that shows the relationship between
SlippageSlippage is the difference between the expected execution price of an order and the price at which the order is actually filled.
Stochastic OscillatorThe stochastic oscillator is a momentum indicator that compares a security's closing price to its price range over a specified number of per
T-BillA T-Bill, short for Treasury bill, is a short-term U.S. government debt security that matures in one year or less and is issued at a discoun
Target Federal Funds RateThe target federal funds rate is the Federal Reserve's declared target range for the federal funds rate—the rate banks charge each other for
Term PremiumThe term premium is the extra expected return that investors require for holding longer-term bonds. It is the portion of a long-term bond's
Time ValueTime Value is the portion of an option's price that reflects the potential for value to change before expiration, beyond its current intrins
TokenizationThe process of representing ownership rights in real-world or financial assets as digital tokens on a blockchain or distributed ledger.
Trade MatchingTrade matching is the process by which a trading venue pairs compatible bid and ask orders to produce matched trades and determine execution