Financial Glossary

Stocks

Securities that represent partial ownership of a company. Also known as shares or equities.

Bonds

Debt instruments issued by companies or governments to finance projects.

ETFs

Exchange Traded Funds. Funds that trade on exchanges like a stock.

Dividends

Distribution of a company's earnings to shareholders.

Volatility

Measure of the price variation of an asset over a period.

Bull Market

Market with upward trend. Rising prices.

Bear Market

Market with downward trend. Falling prices.

Technical Analysis

Study of charts and price patterns to predict movements.

Fundamental Analysis

Evaluation of financial statements and economic factors of a company.

P/E Ratio

Price to Earnings. Relationship between stock price and earnings per share.

Market Cap

Total value of a company calculated by multiplying price by number of shares.

Liquidity

Ease of converting an asset to cash without affecting its price.

Diversification

Strategy of investing in different assets to reduce risk.

Stock Index

Statistical measure of change in a stock market.

Broker

Intermediary that executes buy and sell orders for securities.