Tradeview Academy

Glossary of Trading & Financial Terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


0x Protocol

The open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain.0x protocol acts as the key infrastructure layer for the burgeoning number of financial applications and instruments that are onboarding the blockchain technology stack and getting traded in digital forms.


A comprehensive report is filed annually by a publicly-traded company about its financial performance and is required by the U.S. Securities and Exchange Commission (SEC). It has more details than the company annual reports.


A summary report of a company's annual performance that bundles the 10-K report required by the Securities and Exchange Commission (SEC) with additional commentary from the company, covering such things as the corporate vision, letter to shareholders, and business overview, among other topics.

10-Q Form

A comprehensive report of financial performance that must be submitted quarterly by all public companies to the Securities and Exchange Commission (SEC).

100% Equities Strategy

A strategy where all cash is invested solely in stocks.

12b -1 Fee

Fee that covers the cost of advertising the mutual funds.

130-30 Strategy (Long/Short Equity Strategy)

A 130-30 designation strategy implies using a ratio of 130% of starting capital allocated to long positions and accomplishing this by taking in 30% of the starting capital from shorting stocks.

2000 Investor Limit

SEC mandate that establishes that a company that exceeds 2,000 individual investors, and with more than $10 million in combined assets, must file its financials with the commission.

51% Attack

Blockchain hypothetical attack by a group of miners controlling more than 50% of the network's mining hash rate or computing power.

52-Week high/low

The highest and lowest price at which a security, such as a stock, has traded during the time period that equates to one year.

90/10 Strategy

Strategy invented by Warren Buffett. The method involves deploying 90% of one's investment capital into stock-based index funds while allocating the remaining 10% of money toward lower-risk investments.



China A-shares are the stock shares of mainland China-based companies that trade on the two Chinese stock exchanges, the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE).

Abnormal Returns

Unusually large profits or losses generated by a given investment or portfolio over a specified period.

Absolute Return

The return that an asset achieves over a specified period.

Accelerated Depreciation

Method of depreciation that allows greater depreciation expenses in the early years of the life of an asset.

Accepting Risk

Situation where a business or individual acknowledges that the potential loss from a risk is not great enough to warrant spending money to avoid it.

Account Balance

Amount of money present in a financial repository, such as a savings or checking account, at any given moment.

Account Statement

Periodic summary of account activity with a beginning date and an ending date.

Account Fee

A fee imposed by funds on investors for account maintenance. Sometimes, individuals with accounts below a specified dollar amount may have to pay an account fee.

Accredited Investor

A Company that is registered or that with the SEC or has find an exemption from the registration requirements.


When an individual or department experiences consequences for their performance or actions.

Accrued Investment

Interest earned on a security but not yet paid to the investor.

Accredited Investor

An individual or a business entity that is allowed to trade securities that may not be registered with financial authorities.


Gradual and incremental growth of assets and earnings due to business expansion, a company's internal growth, or a merger or acquisition.

Accretion Discount

Increase in the value of a discounted instrument as time passes and the maturity date looms closer.

Accumulated Depreciation

Cumulative depreciation of an asset up to a single point in its life.

Accumulation / Distribution Indicator (A/D)

Indicator that uses volume and price to assess whether a stock is being accumulated or distributed.

Acid-Test-Ratio (Quick Ratio)

Firm's balance sheet data as an indicator of whether it has sufficient short-term assets to cover its short-term liabilities.


Situation where one company purchases most or all of another company's shares to gain control of that company.

Acquisition Accounting

Set of formal guidelines describing how assets, liabilities, non-controlling interest (NCI) and goodwill of a purchased company must be reported by the buyer on its consolidated statement of financial position.

Active Management

Refers to a professional money manager or a team of professionals is tracking the performance of a client's investment portfolio and regularly making buy, hold, and sell decisions about the assets in it.

ADR - American Depositary Receipts

It's where the stocks of most foreign companies that invest in the US are traded. ADR represents one or more shares of a foreign stock or a fraction of a share.

Advanced Free Fraud

Ask investors to pay a fee up front in order for a deal to go through (including sale of products and services, investment, lottery winnings and more). It can be a fee, tax, commission, etc.

Affiliate Networks

They are a group of associated companies that offer compatible or complementary products with one another. In this case are the platforms you can use to bet or trade Forex.

After-hours Trading (Extended-hours trading)

Trading that occurs outside of regular trading hours.


Term used in investing to describe an investment strategy's ability to beat the market, or its "edge."

Alternative Mutual Fund

Publicly offered, SEC-registered mutual funds that hold non-traditional investments or use complex investment and trading strategies.

Alternative Trading Systems (ATS)

SEC-regulated electronic trading systems that match orders for buyers and sellers of securities.

American Depositary Receipts (ADR)

Each ADR represents one or more shares of foreign stock or a fraction of a share. When a person owns an ADR, you have the right to obtain the foreign stock it represents

Angel Investor

High-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company.

Annual Percentage Rate (APR)

Yearly interest generated by a sum that's charged to borrowers or paid to investors.

Annual Report

Document used by most public companies to disclose corporate information to their shareholders. These documents help to do fundamental analysis as they include financial data, results of operations, market segment information, new product plans, subsidiary activities, research, development activities on future programs, and more.

Annual Return

Profit or loss on an investment over a one-year period.

APR - Annual percentage Rate

Interest rate for a whole year.

ASIC Mining

ASIC systems are specifically designed to mine cryptocurrencies, so they produce more cryptocurrency units than GPUs. Their downside is that they are expensive and generally become obsolete easily.


The lowest price at which a seller will sell the stock or another asset.


Any tangible or intangible item that has value in an exchange.

Asset Allocation

Asset allocation involves dividing your investments among different categories, such as stocks, bonds, and cash.

Asset Classes

Investments that have similar characteristics. The three main asset classes are stocks, bonds, and cash.

Asset Currency

Currency with a high rate that is exchanged in a currency carry trade transaction.

Asset Management

Practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value.

Asset Turnover Ratio

Measures the value of a company's sales or revenues relative to the value of its assets. Used as an indicator of the efficiency with which a company is using its assets to generate revenue.

Asset Under Management (AUM)

Total market value of the investments that a person or entity manages on behalf of clients.

App Coins

They represent future access to a company's services (or products). They are virtual coupons for future company developments.

Average True Range

It's a Market Volatility indicator commonly used for technical analysis. It derives from the 14-day simple moving average of a series of true range indicators.


Bankruptcy of a Public Company

A company may decide to declare bankruptcy when it suffers from crippling debt.

Bear Market

Time period when stock prices are declining and market sentiment is pessimistic. This occurs when the broad market index falls by 20% or more over at least a two-month period.

Beat to Spread

Type of options strategy where an investor or trader expects a moderate-to-large decline in the price of a security or asset and wants to reduce the cost of holding the option trade. The trader purchase put options while also selling the same number of puts on the same asset with the same expiration date at a lower strike price.

Beneficial Owner

A beneficial owner holds stocks indirectly (through a bank or broker-dealer)


Individual who inherits the funds or property because of a financial account, trust or will-

Beta Stocks

Stock beta is a measure of its volatility relative to the market. It shows the risk you get when you invest in a particular stock. Bete between 0 and 1 means the stock is moving in the opposite direction than the market. Beta of one means the stock is moving in the same direction as the market.

Bid-Ask Spread

Amount by which the ask price exceeds the bid price of an asset in the market.

Bid Price

Highest price a buyer will pay to buy a specified number of shares of a stock at any given time


Cryptocurrency. Decentralized digital currency without a central bank or single administrator and that can be sent from peer to peer without intermediary.

Binary Options

Type of options contract in which the payout depends on the outcome of a yes/no proposition. For example, if an asset price will drop or surpass a determined point. Unlike other types of options, a binary option does not give the holder the right to buy or sell the specified asset. When the binary option expires, the option holder receives either a predetermined amount or none.


Blockchain technology and trading are some of the most growing investment practices that most young entrepreneurs use to produce more money. Is a digital record of transactions composed of a series of individual records or blocks that link together on a single list. Blockchain is most commonly used to record transactions of different cryptocurrencies. However, with expansion, the use of this technology extends to other economic sectors.

Blue Chip Stock Stability

Blue chip Stocks tend to be stable as they have an established foothold within whatever industry they dominate in.

Blue Chip Stocks

Stocks issued by companies with name recognition that experience consistent growth and pay dividends.

Blue Sky Laws

Laws designed to protect investors against fraudulent sales practices and activities.


A bond is a debt security. ​​Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time.

Bond Benefits

Government or municipal bonds, of helping public goods and services come to fruition. junk bonds offer a greater return on investment as compensation for taking on a greater risk.

Bond Evaluation

Bonds are not entirely low risk. The bond score is issued by the entity that originates the bond. A bond with a higher rating is safer, but its return on investment is lower for that exact reason. A bond with a lower rating has a greater return on investment as compensation for taking on additional risk.

Bond Funds

Type of investment company that invests primarily in bonds or other types of debt securities.

Bond Risk

Bonds are considered to be a generally safe investment, but they do involve risk. Some bond risks are: Credit Risk, Inflation Risk, Liquidity risk, and Reinvestment Risk.

Bond Swap

When the investor sells one bond and uses the proceeds to buy another bond, often at the same price.

Bonus Credit

The extra amount an insurance company agrees to add to the value of your contract-usually a specified percentage of the payments you make during a certain time period. The percentage hardly ever rises above 5%.

Breakpoint Discounts

When mutual funds who charge front-end sales loads, charge lower sales loads for larger investments.


Person who acts as an intermediary between a buyer and seller, usually charging a commission to execute trades.

Brokerage Account Number

Number or ID that identifies your Brokerage account and differentiates them from the other ones.

Bull Market

Situation when stock or other assets prices are rising and market sentiment is optimistic.

Business Development Companies

Type of closed-end investment fund. Recommended for retail investors who want to invest money in small and medium-sized private companies.

Buying Long

Purchasing or owning shares of stock or other asset, with the expectation that it will rise in value.

Buying Power

Amount of money you have available to buy stock or an asset.


Call Options

Options used for a wide range of option strategies designed for hedging, income, or speculation. It allows the trader who holds it to buy an asset at a starting price within a specific timing.


Option for some bonds to be paid off prior to maturity.

Callable Bonds

Bonds that can be redeemed or paid off by the issuer prior to the bond's maturity date.

Callable CDs

These give the issuing bank the right to terminate the CD after a set period of time, (They do not give the CD holder the same right).

Capital Gain

The profit that comes when an investment is sold for more than the price the investor paid for it.


Money (Bills or coins) that can be used to pay for goods or services.

Cash Amount

Type of brokerage account in which the investor must pay the full amount for securities purchased. On it the investor is not allowed to borrow funds from his or her broker-dealer in order to pay for transactions in the account.

Carry Trade

Trading Strategy where traders borrow interest rates and invest in an asset with a higher return rate.

CD Call Period

Name given to the period when the bank cannot redeem the CD (Typically during the first year)


Illegal practice where brokers engages in excessive buying and selling (i.e., trading) of securities in a customer’s account without considering the customer’s investment goals and primarily to generate commissions that benefit the broker.


Different types of shares issued by a single fund, often referred to as Class A shares, Class B shares, and so on. They usually have different performance results. Each class of a fund holds identical investments and shares the same investment objectives and policies, but has different fees and expenses.

Clean Shares

Fund shares without any front-end load, deferred sales charge, or other asset-based fee for sales or distribution.

Clearing Firm

A clearing house is a financial institution formed to facilitate the exchange of payments, securities, or derivatives transactions.

Cloud Mining

Miners use remote hardware to mine crypto assets. This way miners buy some part of the hardware that has the mining power. Sometimes it is hosted by cloud mining providers. Look at it as “rented infrastructure”.

Closed-end-Investment Fund

One of the basic types of investment companies. It invests the money raised in its initial public offering in stocks, bonds, money market instruments and/or other securities.

Closing Price

Last price at which an asset trades during a regular trading session.


Monetary or financial percentage that is paid when trading is done through a broker, expert trader or financial professional.

Committee on Uniform Securities Identification Procedures (CUSIP)

It's the number that identifies most securities, including U.S. government and municipal bonds

Commodity Futures Trading Commission (CFTC)

Institution that registers and examines firms and individuals.

Common Stocks

Common stock is the most common stock bought. Each share bought is equal to a single vote at a shareholder meeting.


They are a legal document through which traders or individuals can denounce or protest against brokers, brokerage firms, investment advisers, transfer agents, mutual funds, and other market participants.

Component of a Market Index

As can be expected, blue-chip stocks are in the major indexes: the S&P 500, the Dow Jones Industrial Average, and the NASDAQ-100.

Compound Interest

Interest paid on principal and on accumulated interest.

Compounding Method

Closely related to APY is the financial institution’s compounding method for its savings accounts. While it’s most common to expect interest payments on a quarterly basis, some institutions pay interest monthly, semi-annually, or annually.

Consolidated Tape

High-speed, electronic system that reports the latest price and volume data on sales of exchange-listed stocks.


Some funds offer that allows investors to automatically switch from one fund class to another, typically one with lower annual expenses, after a set period of time.

Convertible Bonds

A convertible bond is a bond that can be turned into a certain number of shares of common stock in the company that issued the bond or in exchange for equal cash value.

Convertible Securities

Its a Security that can be converted into a different security.

Copy Trading

Action of copying the trades of other investors.

Corporate Action

A corporate action takes place when a company’s board of directors decides to initiate a process that directly affects the securities issued by that company.

Corporate Bonds

These are bonds put out by commercial undertakings such as corporations and LLCs. Corporate bonds offer high yields but are not favored by the tax code.


A feature of a bond that denotes the amount of interest due and the date that the payment will be made.

Coupon Payment

Dollar amount of interest paid to an investor.

Coupon Rate

Interest rate on a bond.

Corporate Bonds

Companies issue corporate bonds to raise money for a variety of purposes (development, investing, new technology implementation, etc.)

CPU Mining

CPU method was mainly use on mining early days. But nowadays, it is used harley ever, as miners consider it too slow and impractical.


A cryptocurrency is a form of digital money secured by cryptography that makes it nearly impossible to counterfeit or double-spend. Most cryptocurrencies run on decentralized peer-to-peer networks based on blockchain technology. In contrast with fiat currency, there is no need for central bank authorities or any major government in charge of control, issue, and regulation of this form of money.

Current Yield

Ratio of the interest rate payable on a bond to the actual market price of the bond, stated as a percentage.

Cyclical Stocks

A cyclical stock is a stock that’s affected by the overall trends of the economy. They follow the market as it goes up and down.


Day Order

Trading Orders that are good only during that trading day. Day orders that do not execute during regular trading hours expire and will not automatically carry over.

Day Trade

Purchase and sale, or the sale and purchase, of the same asset on the same day in a margin account.

Day Trading

Purchase and sale of assets by traders during the daytime.


Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase.


A failure by an issuer to pay principal or interest when due, or to fulfill other obligations, such as reporting requirements.

Defensive Stock

When the going gets tough, defensive stocks stay the same (more or less). That’s because they sell consumer staples, so theoretically demand will likely not go down just because the economy may be floundering. Such companies provide reliable dividends and stable earnings.

Deferred Sales Charge (Back-End Load)

A sales charge investors pay when they redeem (sell) mutual fund shares. Funds generally use these to compensate brokers

Deferred Load

A deferred load is what you get when you take your calculated front-end load and pay it off when you sell your investment in the fund.


Effectiveness of a derivative hedge. Sometimes called the "hedge ratio."


Financial instruments whose performance is derived, at least in part, from the performance of an underlying asset, security or index.


Information about a company’s financial condition and business that it makes public. Investors can use this information to make informed investment decisions about the company’s securities.

Distribution Fees

Fees paid out of fund assets to cover marketing and selling fund shares.


Strategy that consists of spending the money within different assets. Traders apply this strategy to avoid risking all their money.


A portion of a company's profit paid to shareholders.

Dollar Cost Averaging

When a trader invests its money in equal portions and at regular intervals.


Automatic Dividend Reinvestment. When this feature is enabled on an account, any dividend eligible stocks that receive a dividend payment will automatically reinvest right back into that stock.


Earning per Share

A public company's net profit divided by the number of its common shares.


Earnings per share.

Estate Tax

The federal estate tax only applies to inheritance greater than $11.18 million for individuals and $22.36 million for married couples.


An exchange-traded fund is several investments sold as a package. The ETFs are sold throughout the day just like a stock, and they’re sold for a share price.

Exchange Fee

A fee that some funds impose on shareholders if they exchange (transfer) to another fund within the same fund group.

Exchange-Traded Fund

SEC-registered investment companies that offer investors a way to pool their money in a fund that invests in stocks, bonds, or other assets where investors receive an interest in the fund.


The personal representative is whoever is named in the will and/or found themselves appointed by a probate court as the person responsible for realizing the desires of the deceased.

Executing an order

Action of placing an order either to buy or sell assets in the market.


Utilizing the right to buy or sell the underlying security aqueous though Options market.

Expense Ratio

The fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, are expressed as a percentage of average net assets.

Extended Hours Trading

Extended-hours trading is stock trading that happens either before or after the trading day of a stock exchange, i.e., pre-market trading or after-hours trading. After-hours trading is the name for buying and selling securities when the major markets are closed.



FAANG is an acronym referring to the stocks of the five most popular and best-performing American technology companies: Facebook, Amazon, Apple, Netflix, and Alphabet (formerly known as Google).

Face Value

This is the bond’s value when it’s issued, AKA its “par” value. The most common face value is a bond is $1,000.

Fiat currency

Fiat currency is government-issued, legal tender with value because the government says so, managed by central banks, giving them greater control over the economy because they can dictate how much money is printed. Paper currency is not backed by any commodity and has no intrinsic value, examples of fiat currencies are the U.S. dollar and the Euro


As fiduciaries, investment advisers are required to act in the best interest of their clients and not place their own interests ahead of their clients.


First In, First Out, commonly known as FIFO, is an asset-management and valuation method in which assets produced or acquired first are sold, used, or disposed of first.

Fill-Or-Kill Order

Order to buy or sell an asset that must be executed immediately in its entirety or it will be cancelled.

Financial Industry Regulatory Authority (FINRA)

An institution dedicated to protecting investors and safeguarding market integrity in a manner that facilitates vibrant capital markets.

Financial Literacy

Financial literacy is the ability to understand and effectively apply various financial skills, including personal financial management, budgeting, and investing. Financial literacy helps individuals become self-sufficient so that they can achieve financial stability.

Financial Products

There are multiple financial products: currencies, derivatives, bonds, stocks.

Fixed Rate Bond

Long-term bond with a set interest rate

Foreign Currency Exchange

Price that represents how much it costs to buy the currency of one country using the currency of another country.

Foreign Exchange Market

Markets that trade currencies

Foreign Regulators

Authority that oversees securities markets in other jurisdictions

Forex Broker

Forex Brokers provide currency traders access to a trading platform that allows them to buy and sell foreign currencies. They handle a very small portion of the volume of the overall foreign exchange market. They work to achieve the best for their clients, as Forex Brokers play the role of intermediates between banks providing the service of a financial intermediary for a commission.

Forex Trading

Is the action of buying and selling assets within the Forex Exchange market. The process of speculating on currency prices to potentially make a profit.

Fractional Shares

A fractional share is a fraction of one share of stock.


Situation where a Trader buys and sells an asset before paying for it. It is an illegal practice under the Federal Reserve Board’s regulation.

Front-end Load

Upfront sales charge investors pay when they buy fund shares.

Full-Service Broker

A full-service broker is the equivalent of working with an actual stockbroker and therefore provides a more personalized, white-glove experience than basic online brokers.

Funding Currency

Currency with a low rate that is exchanged in a currency carry trade transaction.

Futures Value

The value of an asset at a specified date in the future.

Futures Contract

Agreement to buy or sell a specific quantity of a commodity or financial instrument at a specified price on a particular date in the future.

Futures Market

Markets that trade futures contracts for commodities such as gold, oil or wheat, as well as financial futures.



The stock market is an exchange, that means every time you buy a stock, it’s being sold by someone else, and every time one sells a stock, it’s being purchased by someone else. When a trader purchase a stock for a specific amount and the value of that stock appreciates in value (the share is worth more than you paid for it) that is what’s known as unrealized gains.

GFV (Good Faith Violation)

If a trader buys a stock with settled funds today, he/she can technically sell the stock tomorrow without getting a violation. Traders can then use those funds from the sale to purchase more stock immediately, however, if the trader sells that stock before the 2 day settlements period, those would be considered unsettled funds and that would result in a cash account violation. As a reminder, trades placed in a cash account require 2 business days to settle before you can use those funds to buy and sell.

Government Bond

These are bonds issued by sovereign governments. They are backed by the full faith and credit of the issuing country, which can take whatever steps necessary to pay off the bond.

GPU Mining

GPU method maximizes computational power and brings together a set of GPUs under one mining rig.


This is the person who set up the trust in the first place.

Gross Pay

Gross pay is the amount of money your employees receive before any taxes and deductions are taken out.

Growth History

Blue-chip companies are dependable. Their growth is consistent over time and the prognostications are equally good. They lack the sizzle and pop of skyrocketing start-ups, but that’s only because they’re the big kids on the block.

Growth Investing

A growth investment strategy focuses on capital appreciation. Growth investors look for companies that exhibit signs of above-average growth, through revenues and profits, even if the share price appears expensive.

GTC (Good-Till-Canceled)

Order to buy or sell a stock that lasts until the order is completed or canceled. Brokerage firms typically limit the length of time an investor can leave a GTC order open.



Unique to every block of the blockchain. It is a number of 64 digits. It is a truncated digital signature of a chunk of data. They are generated to secure data transferred on a public network.

Hedge / Hedging

A Hedge is an investment made to downsize risk coming from an asset or assets price movement.

Hedge Ratio

Effectiveness of a derivative hedge. Sometimes called the "delta."


If there’s no valid will, then the heir is the one who inherits the assets. This term is often used in reference to the individual who receives assets because of a will, but the correct term to use in that case is actually “beneficiary.”

Hybrid Stocks

Hybrid stocks are known as such because they combine aspects of two or more financial instruments. Most commonly, they have characteristics of both debt and equity. So, this may be a bond, which is a loan that you make a profit off of as it’s paid back, that’s also influenced by the price fluctuations of the stock.


Immediate-or-Cancel Order

Order to buy or sell a stock that must be executed immediately.


Impersonators may falsely claim to be affiliated with the SEC (or another federal government agency) in an attempt to steal personal information or a trader's money.

Impulse Spending

An impulse purchase or impulse buying is an unplanned decision to buy a product or service, made just before a purchase. One who tends to make such purchases is referred to as an impulse purchaser or impulse buyer.

In the Money

In the money refers to an option contract that, if it were exercised today, would be worth more than $0. A call option is said to be in the money when its exercise price is below the current price of the underlying asset.

Income Funds

Type of investment company that invests primarily in bonds or other types of debt securities.

Income Investing

An income investing, sometimes called “fixed income,” strategy involves buying securities that generally payout returns on a steady schedule. Bonds, dividend-paying stocks, exchange-traded funds (ETFs), mutual funds, and real estate investment trusts (REITs) fall into this category.

Index Fund

Type of mutual fund whose investment objective typically is to achieve approximately the same return as a particular market index

Individual Mining

It is done by an individual who was registered as a miner. Each user that works on their own gets a mathematical problem to solve. The one who solves it first gains profit or is rewarded.

Inheritance Tax

Inheritance tax is paid after traders get the assets. There’s no federal inheritance tax, but six states apply taxes to inheritance. Most beneficiaries, however, including children, grandchildren, husbands, and wives, don’t pay inheritance taxes.

Initial Deposit

Minimum initial deposit amount to open a high yield savings account.

Initial Public Offering (IPO)

Situation where a company first sells its shares to the public.

Instant Settlement

Transfers to and from a bank account can take 3-5 business days to process or settle before you can use those funds to invest in stock. The good news is, once your Public account has at least $100 in settled funds, any future deposits will be instantly available to invest up to the all-time amount of settled funds in your account (up to $1,000).


The price paid for borrowing money. It is expressed as a percentage rate over a period of time.

Interest Payment

A payment amount is determined by the interest rate on an account. As a borrower, an interest payment represents the rate charged for being lent funds.

Interest Rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed. The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.

Interval Fund

An interval fund is a type of investment company that periodically offers to repurchase its shares from shareholders.


Action of engaging in any activity in which money is put at risk for the purpose of making a profit.

Investment Advisor

Person or entity that is engaged in the business of providing investment advice to others.

Investment Advisor Public Disclosure

Database contains registration documents filed by investment adviser firms that register electronically.

Investment Company

A company that issues and invests in securities. The three types of investment companies are mutual funds, closed-end funds, and unit investment trusts.

Investment Objectives

Investment goals or achievements in the short, medium, and long term. An investor whose objective is long-term growth over decades will have a different strategy than one who wishes to cash out their accounts in 10 years.


When a company first decides to go public, it issues stock for the first time. This is known as the “initial public offering,” or IPO for short.


Entity obligated to pay principal and interest on a bond.


Large Cap

Term used to describe a company’s size and market value or market capitalization.

Large - Cap Stocks

Large-cap companies have a value of $10 billion or more. A company of this size has likely been around for a while within a well-worn business territory.

Large market Capitalization

A market cap is the means by which we quantify the size and value of a company. Blue-chip stocks tend to be large-cap stock, which translates into a market valuation that exceeds $10 billion.

Leverage Loan

Type of loan made to borrowers who already have high levels of debt and/or a low credit rating.


An amount owed to a person or organization for borrowed funds. This can include all kinds of obligations, like money borrowed from a bank to launch a new product, rent for use of a building, money owed to suppliers for materials, payroll a company owes to its employees, environmental cleanup costs, or taxes owed to the government.

Limit Order

Order to buy or sell a security at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.


Refers to how easily or quickly a security or asset can be bought or sold in a secondary market.

Listing Standards

Standards a company must fulfill before its stocks can begin to exchange in the market.


Amount that investors pay when they buy shares in a mutual fund.

Lock-Up Period

Lockup agreements prohibit company insiders—including employees, their friends and family, and venture capitalists—from selling their shares for a set period of time.

Long-Term Investment Strategy

A long-term investing strategy means investing in companies prepared to endure the bad times and that have a plan for the good times. Pricing power, an influential brand presence, and other competitive advantages can mean a lot more than a high speculative valuation.

Lot Size

It refers to the specific amount of currency or currency units traders can buy and sell.



Borrowing money from your broker to buy a stock and using your investment as collateral. Investors generally use margin to increase their purchasing power so that they can own more stock without fully paying for it.

Margin Account

Type of brokerage account in which the broker-dealer lends the investor cash, using the account as collateral, to purchase securities.

Margin Call

Situation where a trader makes a buy on margin and the assets decline. The brokerage firm requires the trader to deposit cash or securities to its account immediately, or sell any of the securities in the account to cover any shortfall, without informing the trader in advance.

Margin Maintenance

After you buy stock on margin, FINRA requires you to keep a minimum amount of equity in your margin account. The equity in your account is the value of your securities less how much you owe to your brokerage firm.

Market Capitalization

Market capitalization is the value of a corporation determined by multiplying the current public market price of one share of the corporation by the number of total outstanding shares.

Market Hours

Regular trading hours for stocks traded on exchanges and certain other markets are from 9:30 a.m. to 4:00 p.m. Eastern Time.

Market Index

Measurement of the performance of a specific "basket" of assets considered to represent a particular market or sector of the economy.

Market Indices

Performance of a specific "basket" of stocks that represent a particular market or economic sector.

Market Manipulation

When someone artificially affects the supply or demand for an asset or security.

Market Order

Order to buy or sell a stock at the current market price.


Difference between the real market price of an asset and the value a trader pays for it when acquiring it through a broker dealer.


Maturity indicates how long it will take for a trader to earn back the bond’s face value. Most, but not all, bonds cease to exist when they reach their maturity.


Combination of generally two or more companies into a single entity. Mergers are business combination transactions involving the combination of two or more companies into a single entity. Most state laws require that mergers be approved by at least a majority of a company’s shareholders if the merger will have a significant impact on either the acquiring or target company.

Microcap Stock

Companies with low or micro market capitalizations. Usually lower than $250 or $300 million.

Mid-Cap Stock

Mid-cap companies tend to have a market value somewhere between $2 billion and $10 billion and operate within sectors that show the promise to experience quick growth. Not surprisingly, successful companies in these sectors are likely to be growing, as well. Mid-cap stocks carry more risk than large-cap counterparts because they are not as established or secure yet.

Mini-Tender Offers

Tender offers where the person who makes the tender offer ends up owning less than five percent of a company’s stock.

Minimum Balance

For a trader to keep the high yield savings account as full of cash as possible, banks and credit unions will waive account maintenance fees and offer their most competitive APY as long as your balance stays above the account minimum balance requirement.

Money Managers

A money manager is someone who a person hires to invest their money, (it is different from a broker who provides a detailed plan but leaves the actual investing to the trader). Money managers work with large portfolios and, as a result, charge significant fees.

Money Markets

A market that provides trading in short-term debt.

Money Market Funds

Money market funds invest in short-term bonds issued by governments or corporations. Bonds are small loans that allow investors to make a profit off interest payments. Money market funds are low risk because they can only make high-quality investments.

Municipal Bonds

Debt securities issued by states, their political subdivisions, their agencies and instrumentalities.

Mutual Fund

Open-end investment company or fund.

Mutual Funds Benefits

There are a few reasons that make mutual funds an attractive option for investors. Instant Diversification, Time Savings, Potential outperformance.

Mutual Funds Drawbacks

The pros of mutual funds must be weighed against their cons. Fees, Historical Underperformance, Tax Inefficiencies.

Mutual Traded Funds

A mutual fund is a cornucopia of investments. Traders can buy a mix of stocks and bonds as a diversified package that has already been assembled for you. This is a less risky investment with less dramatic upside.



NASDAQ, or the NASDAQ Stock Market, is a national securities exchange that is owned and operated by the NASDAQ OMX Group. The NASDAQ Stock Market is composed of three market tiers: (1) the NASDAQ Global Select Market, (2) the NASDAQ Global Market, formerly the NASDAQ National Market, and (3) the NASDAQ Capital Market, formerly the NASDAQ SmallCap Market. For a company to trade on the NASDAQ Stock Market, it must meet the listing requirements of at least one of these three market tiers. Some of these listing requirements include meeting specified minimum thresholds for the number of publicly traded shares, total market value, stock price, and number of shareholders.

Negative Divergence

It appears when the price of an asset is moving in the opposite direction of a technical indicator, indicating a move lower in the price of the asset is possible.

Net Asset Value

Company's total assets minus its total liabilities.

Net Income

The profit earned by a company after all expenses and taxes have been deducted from revenue.

No-Load Fund

A fund that does not charge any type of sales load.

Nominal Yield

Bond’s annual interest payout divided by its face value.


New York Stock Exchange.


Online Brokerage Firms

Online brokerages like Public do not require account minimums, do not charge commission fees, and allow for investing in slices of shares for thousands of stocks and ETFs.

Online Brokerage Firms with Assistance

For a little more money per transaction, you can work with a discount broker with assistance. These platforms provide an additional layer of support relative to spartan online brokers and may provide more information about the stocks you are trading or published newsletters with tips.

Online Trading

Action of trading through an internet linked device, a mobile device, a computer, etc.

Open-End Company

The legal name for a mutual fund. An open-end company is a type of investment company.


Options are contracts giving the purchaser the right to buy or sell a security at a fixed price within a specific period of time.

OTC Market

The Financial Industry Regulatory Authority (FINRA) regulates broker-dealers that operate in the over-the-counter (OTC) market. Many equity securities, corporate bonds, government securities, and certain derivative products are traded in the OTC market.

Out of Money (OTM)

Expression used to describe an option contract that only contains intrinsic value. These options will have a delta of less than 50.0. An OTM call option will have a strike price that is higher than the market price of the underlying asset. Alternatively, an OTM put option has a strike price that is lower than the market price of the underlying asset

Over-The-Counter Securities

Securities not listed on a national securities exchange.

Overvalued stock

An overvalued stock is a stock that’s selling for more than it is worth, based on financial analysis.


Pattern Day Trader

Any customer who executes four or more “day trades” within five business days, provided that the number of day trades represents more than six percent of the customer’s total trades in the margin account for that same five business day period.

Penny Stock

Penny stocks or companies that are listed on the OTC typically lack reliable information and liquidity.

PIPE Offerings (Private Investment in Public Equity)

Situation where the investors commit to purchase a certain number of restricted shares from a company at a specified price.


A PIP or “Percentage In Point” is the measurement of how the market moves. You may hear on the news that the “Aussie Dollar” had a strong day moving 200 “PIP’s” against the US Dollar, meaning if it had a starting position of 0.92180 it would have moved to 0.92380. PIP’s are calculated and move in units of 1 so depending on the size of your position (how many lots) would determine how much each pip is worth per tick.

Pool Mining

When a group of people collaborates to find a solution to a mathematical problem. Once it is solved, the price is divided among the winners. Some miners create their own pools, and some even charge for being in a determined pool (as some groups can be more successful than others).


The combined holdings of stock, bond, commodity, real estate and other investments by an individual or institutional investor.

Positive Divergence

It appears when the price of an asset is moving in the opposite direction of a technical indicator, indicating a move higher in the price of the asset is possible.

Preferred Stock

Those who hold preferred stock get preferential treatment. Preferred stock units are usually not traded on exchanges, nor do they come with any voting rights. Holders of preferred stock do, however, get to be the first ones to receive their dividends and often receive more dividends.

Prepayment Risk

The risk that principal repayment will occur earlier than scheduled, forcing the investor to reinvest at lower prevailing rates.


A bond’s price is how much it would fetch if it were traded on a secondary market. There are several factors that determine the bond’s price, with perhaps the most important being what the bond’s coupon is relative to other, comparable bonds.

Primary Market

Markets in which newly issued assets are sold to investors and the issuer receives the proceeds.


Money made on a transaction.

Proof of Work

Proof-of-Work (PoW) consensus protocol has been put into place in order to ensure that only verified crypto miners can mine and validate transactions. PoW is a mathematical challenge required to validate the transaction and receive payment. Whoever makes the transaction first gains the profit.

Purchase Fee

A shareholder fee that some funds charge when investors buy mutual fund shares. This is not the same as, and may be in addition to, a front-end load.

Purchasing Power

The amount of goods and services that can be purchased by a given unit of currency, taking into account the effect of inflation.

Put Provisions

A put provision is an opportunity that some bonds have to be sold back to the bond issuer at a certain date before the bond reaches maturity.


Q Ratio / Robin's Q

It equals the market value of a company divided by its assets' replacement cost. It was popularized by Nobel Laureate James Tobin and invented in 1966 by Nicholas Kaldor. It measures whether a firm or an aggregate market is relatively over or undervalued.


Real vs. Personal Property

Real property means real estate, while personal property means anything else that one may inherit that isn’t real estate.

Real Return

What is earned on an investment after accounting for taxes and inflation.

Realized Yield

The realized yield is an estimate of the bond’s future price. This is calculated when the bond holder intends to sell the bond before it reaches maturity. Realized yield is an estimate at best, but it’s useful nonetheless.


Action of bringing a portfolio back to its original asset allocation mix.

Redeemable Bonds

Bonds that can be redeemed or paid off by the issuer prior to the bond's maturity date.

Registered Owner

Record holder who holds stocks directly with the company.

Restricted Securities

Securities acquired in an unregistered, private sale from the issuing company or from an affiliate of the issuer.


Total amount of money, or gross income, generated by a company from selling its goods and services.


Degree of uncertainty about the rate of return on an asset and the potential harm that could arise when financial returns are not what the investor expected.

Risk Tolerance

Investor's ability and willingness to lose some or all of an investment in exchange for greater potential returns.


Automated digital investment advisory program that collects information about the markets, and other financial information according to a trader’s goals or investments horizons.


A process that federal agencies use to make rules.


Safe Harbor Statement

A call usually begins with a safe harbor statement, which just lets everyone know that financial results may include predictions about the future that may not necessarily come true. This disclaimer limits the company’s liability if the predictions about the future differ wildly from what the future actually brings.

Sales Charge

Amount that investors pay when they buy (front-end load) or redeem (back-end load) shares in a mutual fund.

Saving and Investing Apps

Variety of different mobile applications that use technology to help people save and invest.


Income that is not spent on consumption but is put aside.

Savings Bonds

Debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs.

SEC - U.S. Securities and Exchange Commission

Independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of the securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

Secondary Market

Markets where existing assets are bought and sold.

Secure Bond

A secured bond is backed by a particular type of collateral. In the event of a default, that asset is divided between bondholders.


An investment instrument such as a stock or bond.

Security Tokens

These types of tokens usually get their value from an external source, like a tradable asset for example. Security tokens respond to federal securities regulations. When tokens are subject of these regulations and meet them all they can represent a company’s stock shares.

Senior Bond

A bond that has a higher priority than another bond's claim to the same class of assets in case of a default or bankruptcy.

Shareholders Equity

Shareholders’ equity is sometimes called capital or net worth. It’s the money that would be left if a company sold all of its assets and paid off all of its liabilities. This leftover money belongs to the shareholders, or the owners, of the company.

Short Sales

It occurs when a trader sells an asset he/she does not own. Traders do this type of selling when they believe the asset price will fall. If the asset falls even more traders can buy and make a profit.

Short Selling

A short sale is the sale of a stock that an investor does not own or a sale which is consummated by the delivery of a stock borrowed by, or for the account of, the investor. Short sales are normally settled by the delivery of a security borrowed by or on behalf of the investor.

Small-Cap Stock

Small-cap companies have a market value ranging from $300 million and $2 billion. A small-cap company may be at the start of its lifespan, serve a niche sector, or exist within a developing arena. Small-cap companies are said to be riskier investments because of their age, size, and the industries they serve.

Solo Mining

It is done by an individual who was registered as a miner. Each user that works on their own gets a mathematical problem to solve. The one who solves it first gains profit or is rewarded.

Speculative Stocks

It is done by an individual who was registered as a miner. Each user that works on their own gets a mathematical problem to solve. The one who solves it first gains profit or is rewarded.

Spike Price

It is done by an individual who was registered as a miner. Each user that works on their own gets a mathematical problem to solve. The one who solves it first gains profit or is rewarded.

Spot Trade

Purchase or sale of a foreign currency, financial instrument, or commodity for instant delivery on a specified spot date.


A stock, also known as an equity, is when you get a share of ownership in a company. Stocks are sold at the price of each share, the cost of which varies from company to company.

Stock Dividend Split

A split is what occurs when a company decides to give more stock to shareholders based on how much stock shareholders already have. This is likely to occur following an IPO.

Stock Fund

It describes a type of investment company that invests primarily in stocks or equities.

Stock Market

A general term for the organized trading of stocks through exchanges, over-the-counter, and computerized trading venues.

Stock market Circuit Breaker / Market Wide Circuit Breaker

Coordinated procedures that are implemented to halt trading in case there is a major price decline.

Stock Quotes

Listi​​ngs of prices to buy and sell a specific stock. They show bids or the prices buyers are willing to pay, and offers or the prices sellers are willing to accept.

Stock Slice

At Public, you can become an owner in any company by investing any amount of money regardless of the share price.

Stock Split

An increase in the number of shares of a corporation's stock without a change in the shareholders' equity.

Stop Order

Order to buy or sell an asset once its price reaches a specified price or the Stop Price.

Stop-Limit Order

A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is reached, a stop-limit order becomes a limit order that will be executed at a specified price (or better).


Target-Date Fund

Using a mix of stocks, bonds, and investments, target-date funds shift in accordance with the fund’s overarching goals. Known as lifecycle funds, these investments are designed to mature by particular retirement dates.

Technical Analysis

Technical analysis is a form of analysis that purely analyzes pricing charts with the intent to identify momentums, trends, and price inversions that signify the movement of an asset. In order to properly conduct this form of analysis, the trader uses different instruments such as trend indicators and mathematic formulas represented on the charts. Additionally, technical analysis enables the trader to forecast the price movements just by looking at graph behaviors for the short, medium, and long term simultaneously.

Tender Offer

A tender offer is typically an active and widespread solicitation by a company or third party to purchase a substantial percentage of the company’s securities.


Each publicly traded common stock in the U.S. receives a short abbreviation that identifies it, known as the ticker symbol.

Time Horizon

A number of months, years, or decades a person needs to invest to achieve its financial goal.

Trading Psychology

Trading Psychology involves emotions. Basically, all states of mind which may get a trader to make the right or wrong decisions. It represent´s the behaviors that influentiate trading actions.

Transfer of Death Registration (TOD)

Allows passing the securities or assets a person owns directly to another person or entity upon his/her death without having to go through probate.

Transfer of Ownership

Allows people to transfer or sell securities or assets they hold in physical certificate form.


Undervalued Stock

An undervalued stock is a stock that is selling at a price for less than what it’s worth. Since one way to make money in the stock market is to invest in stocks that will increase in value over time, an undervalued stock is a great find.

Unsecured Bond

An unsecured bond is not backed by any asset. It gets its worth from the credibility of the bond issuer.

User Tokens

They represent future access to a company's services (or products). They are virtual coupons for future company developments.

Utility Tokens

They represent future access to a company's services (or products). They are virtual coupons for future company developments.


Value Investing

Value investment strategy means to buy stocks that are cheaper than they should be and hold onto them until their value rises. This buy and hold strategy demands a patient investor but if the right call is made, handsome payoffs could be gained.


Washi Sale

The situation when a trader sells or trades securities or assets at a loss and within 30 days before or after the sale they acquire a contract or option to buy substantially identical assets, buy substantially identical assets, or acquire substantially identical assets in a fully taxable trade.

Wrap Account

A wrap account is an investment account where a wrapped fee or fees cover all of the management, brokerage and administrative expenses for the account. The fee or fees are generally based on the total market value of the investment account.



The annual percentage rate of return earned on a bond is calculated by dividing the coupon interest rate by its purchase price.

Yield Curve

A line graph that shows the relative yields on debt over a range of maturities from three months to 30 years.

YTD Change

Year to date (YTD) refers to the period beginning the first day of the current calendar year up to the current date. YTD percent change refers to the comparison of the current YTD to the same time period a year ago.


The YTM measures the return of the bond if you keep it until maturity and then has its interest reinvested. Since the interest will be paid out at various points, it’s unlikely that the interest will be reinvested all at once. This means that the return on investment won’t be 100% aligned with its face value.



A Z-score is a numerical measurement that describes a value's relationship to the mean of a group of values. If a Z-score is 0, it indicates that the data point's score is identical to the mean score. A Z-score of 1.0 would indicate a value that is one standard deviation from the mean.