Investing

A 10-K is an annual report filed by publicly traded companies in the U.S., detailing their financial performance and operations over the past fiscal year.

The 10-Q SEC Form is a quarterly financial report that publicly traded companies must file with the Securities and Exchange Commission (SEC), providing a comprehensive overview of financial performance and operations.

A 10-Year US Treasury Note is a government debt security that pays interest every six months and returns the principal at maturity after ten years.

A 12B-1 fee is an annual marketing or distribution fee on a mutual fund, charged to fund shareholders to cover the costs associated with selling fund shares, including advertising and commissions paid to brokers.

A 30-Year Treasury bond is a long-term U.S. government debt security with a maturity of 30 years, offering periodic interest payments and principal repayment at maturity.

A 401(a) plan is a type of employer-sponsored retirement plan that allows for contributions by both the employer and the employee, often used by government and nonprofit employers.

A 401(k) plan is a tax-advantaged retirement savings account offered by many employers in the United States, allowing employees to save and invest a portion of their paycheck before taxes are taken out.

A 403(b) plan is a tax-advantaged retirement savings plan available for public education organizations, some non-profit employers, and self-employed ministers.

A 457 plan is a type of tax-advantaged retirement savings plan available to certain public sector and non-profit employees.

A 51% attack refers to a situation where a single entity or group gains control of more than half of the computing power on a blockchain network, allowing them to manipulate transactions and potentially double-spend coins.

The 52-week high/low refers to the highest and lowest prices at which a stock has traded during the previous 52 weeks.

A 529 Plan is a tax-advantaged savings plan designed to encourage saving for future education costs, primarily for a designated beneficiary.

The 80-20 Rule, also known as the Pareto Principle, states that roughly 80% of effects come from 20% of causes in many situations.

Absolute advantage refers to the ability of a country, individual, or company to produce a good or service more efficiently than its competitors using fewer resources.

The Accounting Rate of Return (ARR) is a financial metric used to measure the expected profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

The Acid-Test Ratio, also known as the quick ratio, measures a company's ability to meet its short-term obligations with its most liquid assets without relying on inventory.

An acquisition is a corporate action where one company purchases most or all of another company's shares to gain control of that company.

After-hours trading refers to the buying and selling of securities outside the standard trading hours of major stock exchanges.

Alpha is a measure of an investment's performance relative to a benchmark, indicating the excess return an investor receives from an investment compared to the market.

Amalgamation is the process of combining two or more companies into a single new entity, often to achieve operational efficiencies or strategic advantages.

An American Depositary Receipt (ADR) is a certificate issued by a U.S. bank representing a specified number of shares in a foreign stock traded on a U.S. exchange.

Analysis of Variance (ANOVA) is a statistical method used to determine if there are any statistically significant differences between the means of three or more independent (unrelated) groups.

An angel investor is an individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.

Artificial Intelligence (AI) in finance refers to the use of machine learning algorithms and computational methodologies to manage financial data, predict market trends, and automate trading and investment decisions.

An asset is any resource owned by an individual or entity that is expected to provide future economic benefits.

Asset management is the process of developing, operating, maintaining, and selling assets in a cost-effective manner to maximize their value.

The asset turnover ratio measures how efficiently a company uses its assets to generate sales revenue.

Assets Under Management (AUM) refers to the total market value of the investments that a financial institution manages on behalf of its clients.

Average True Range (ATR) is a technical analysis indicator used to measure market volatility by decomposing the entire range of an asset price for that period.

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

The Balanced Scorecard is a strategic planning and management system used to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Bayes' Theorem is a mathematical formula used to update the probability estimate for an event based on new evidence.

A bear market refers to a period in which stock prices fall by 20% or more from recent highs, typically leading to widespread pessimism and negative investor sentiment.

Berkshire Hathaway is a multinational conglomerate holding company headquartered in Omaha, Nebraska, known for its long-term investment strategy and its chairman, Warren Buffett.

Bernie Madoff was an American financier who orchestrated the largest Ponzi scheme in history, defrauding thousands of investors of billions of dollars.

Beta is a measure of a stock's volatility in relation to the overall market.

Bitcoin mining is the process by which new bitcoins are entered into circulation and transactions are confirmed on the blockchain, using computational power to solve complex mathematical problems.

Blockchain is a decentralized digital ledger that records transactions across multiple computers in a way that ensures security and transparency.

Bollinger Bands are a technical analysis tool used to determine overbought or oversold conditions in a market. They consist of a middle band being a simple moving average, flanked by two standard deviation lines.

A bond is a fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Break-even analysis is a financial calculation used to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Brexit refers to the United Kingdom's decision to leave the European Union, which was finalized on January 31, 2020.

Brexit refers to the United Kingdom's decision to leave the European Union, which has significant implications for financial markets and economies both in the UK and globally.

A bull market refers to a financial market condition where prices are rising or are expected to rise.

The business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time, typically characterized by phases of expansion, peak, contraction, and trough.

Business ethics refers to the moral principles and standards that guide behavior in the world of business.

A business model outlines how a company creates, delivers, and captures value, in economic, social, or other contexts.

Business valuation is the process of determining the economic value of a business or company unit. It uses financial analysis, market trends, and asset values to estimate the worth of the business.

Capital refers to the financial assets or resources that individuals or businesses possess, which can be used to fund operations, investments, or future growth.

The Capital Asset Pricing Model (CAPM) is a financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Capital expenditure (CapEx) refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Capitalism is an economic system where private individuals rather than the state own and control property and businesses, operating them for profit.

The Central Limit Theorem (CLT) is a statistical principle that states that the distribution of sample means approximates a normal distribution as the sample size becomes larger, regardless of the population's distribution.

The Chartered Financial Analyst (CFA) designation is a professional credential offered by the CFA Institute to investment and financial professionals who have passed three levels of exams covering areas such as investment management, financial analysis, stocks, bonds, and derivatives.

The Chief Executive Officer (CEO) is the highest-ranking executive in a company, responsible for making major corporate decisions, managing the overall operations and resources of the company, and acting as the main point of communication between the board of directors and corporate operations.

A Code of Ethics is a set of guidelines designed to help professionals conduct business honestly and with integrity.

The Coefficient of Variation (CV) is a statistical measure that quantifies the relative variability of a data set, expressed as a ratio of the standard deviation to the mean.

A command economy is an economic system where the government has full control over the production and distribution of goods and services.

Comparative advantage is an economic theory that describes how entities can gain and sustain economic efficiency by specializing in the production of goods and services for which they have the lowest opportunity cost.

Compound Annual Growth Rate (CAGR) is a measure used to express the mean annual growth rate of an investment over a specified time period longer than one year.

Interest calculated on both the principal amount and previously earned interest.

Conflict theory is a sociological perspective that emphasizes the role of competition and conflict between social groups over resources and power, influencing economic structures and market behaviors.

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Contribution margin is a measure of a company's profitability, calculated as sales revenue minus variable costs.

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two variables.

Correlation in finance measures the degree to which two securities move in relation to each other, indicating how investments might behave under similar market conditions.

Cost of Goods Sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials and labor directly used to create the product.

Creative destruction refers to the process where new innovations lead to the demise of older technologies and economic structures, fostering new industries and economic growth.

A Credit Default Swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor.

The current ratio is a liquidity ratio that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Days Payable Outstanding (DPO) measures the average number of days a company takes to pay its invoices from trade creditors and suppliers.

Days Sales Outstanding (DSO) is a financial metric that measures the average number of days a company takes to collect payment after a sale has been made.

A debenture is a type of debt instrument that is not secured by physical assets or collateral but is backed only by the general creditworthiness and reputation of the issuer.

The Debt-to-Equity Ratio (D/E) is a financial metric used to measure a company's financial leverage by comparing its total liabilities to its shareholder equity.

Deferred compensation refers to a portion of an employee's income that is set aside to be paid at a later date, typically to benefit from tax advantages.

Demand elasticity measures how sensitive the quantity demanded of a good or service is to changes in its price.

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

A derivative is a financial security whose value is dependent upon or derived from an underlying asset or group of assets.

Dilution occurs when a company issues new shares, reducing the ownership percentage of existing shareholders.

An investment strategy that spreads risk by investing in a variety of assets across different sectors, industries, or asset classes.

A dividend is a portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

The dividend payout ratio is a financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends.

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the NASDAQ.

Due diligence is the comprehensive assessment and evaluation of a business or individual prior to signing a contract, particularly in financial transactions.

DuPont Analysis is a financial ratio technique that decomposes the factors driving a company's return on equity (ROE) into three distinct components, helping analysts understand the sources of profitability.

Earnings Before Interest and Taxes (EBIT) is a financial metric that calculates a company's profitability by excluding interest and tax expenses.

EBITDA is a financial metric used to evaluate a company's operating performance by excluding the effects of financing decisions, accounting decisions, and tax environments.

Earnings Per Share (EPS) is a financial metric used to measure the profitability of a company on a per-share basis, indicating how much money a company makes for each share of its stock.

EBITA stands for Earnings Before Interest, Taxes, and Amortization, a financial metric used to evaluate a company's operating performance without the effects of financial and accounting decisions.

Economic growth refers to the increase in the production of economic goods and services, compared from one period of time to another.

An economic moat refers to a business's ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share.

Economics is the social science that studies the production, distribution, and consumption of goods and services, focusing on how individuals, businesses, governments, and nations make choices about allocating resources.

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

An Employee Stock Ownership Plan (ESOP) is a retirement plan that allows employees to own a stake in the company they work for, typically through the acquisition of company stock.

An endowment fund is a financial asset, often set up by a nonprofit organization, that uses the investment income from donations to fund ongoing operations or specific initiatives.

Enterprise Resource Planning (ERP) is a type of software used by organizations to manage and integrate the important parts of their businesses. An ERP software system can integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more.

Enterprise Value (EV) is a measure of a company's total value, often used in the valuation of companies to assess their worth including debt and excluding cash.

An entrepreneur is an individual who starts and manages a business, taking on financial risks in the hope of profit.

ESG criteria are standards for a company's operations that socially conscious investors use to screen potential investments based on environmental, social, and governance practices.

Equity represents ownership value in an asset or a company, typically expressed as the difference between the asset's value and the liabilities associated with it.

Equivalent Annual Cost (EAC) is a financial metric used to compare the annual costs of different investment projects over their lifespans, assuming each has a different lifespan.

Ex-dividend refers to the period after which a declared dividend belongs to the seller rather than the buyer of a stock.

An exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded.

An exchange rate is the value of one currency for the purpose of conversion to another. It indicates how much one currency is worth in terms of another.

An externality is an economic term for a cost or benefit that affects a party who did not choose to incur that cost or benefit.

FAANG stocks refer to the shares of five prominent American technology companies: Facebook (Meta), Apple, Amazon, Netflix, and Google (Alphabet).

Factors of production are the resources used to create goods and services in an economy, typically categorized into land, labor, capital, and entrepreneurship.

FANG stocks refer to the shares of four prominent American technology companies: Facebook (now Meta), Amazon, Netflix, and Google (now Alphabet).

A fiduciary is an individual or organization that acts on behalf of another person or persons to manage assets, bound ethically and legally to act in the other's best interest.

Finance refers to the management, creation, and study of money, banking, credit, investments, assets, and liabilities. It involves practices like saving, borrowing, investing, budgeting, and forecasting.

Financial statements are formal records of the financial activities and position of a business, person, or other entity, providing an overview of a financial situation over a specific period.

Fixed income refers to investment securities that pay investors fixed interest or dividend payments until its maturity date. After maturity, investors are repaid the principal amount invested.

A fixed-income security is a type of investment that provides returns in the form of regular, fixed payments and the eventual return of principal at maturity.

Form 10-K is an annual report required by the U.S. Securities and Exchange Commission (SEC) that gives a comprehensive summary of a company's financial performance.

Form 8-K is a report filed by publicly traded companies to announce significant events that may affect the company's financial status or share value.

Free Carrier (FCA) is an international trade term where the seller delivers the goods, cleared for export, to a carrier appointed by the buyer at a specified location.

A free market is an economic system where prices for goods and services are determined by the open market and consumers, with minimal government intervention.

Free on Board (FOB) is a term used in international trade to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping.

Futures are financial contracts obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.

Game theory is a branch of mathematics that analyzes strategic interactions where the outcome for each participant depends on the actions of others.

Gamma is a measure of the rate of change in an option's delta for a one-point increase in the price of the underlying asset.

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade, aimed at reducing tariffs and other trade barriers.

Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used in the United States for financial reporting and accounting. They ensure consistency, comparability, and transparency in financial statements.

Generation X, often abbreviated as Gen X, refers to the generation born between the early 1960s and early 1980s. This group is known for its unique cultural and economic influences during a time of significant technological and economic change.

Generation X (Gen X) refers to the demographic cohort born between the early 1960s and early 1980s, known for its unique financial challenges and opportunities.

The geometric mean is a type of average that indicates the central tendency of a set of numbers by using the product of their values. It is particularly useful for understanding rates of return over time in finance.

A Giffen good is a product that experiences an increase in demand as its price increases, contrary to the typical law of demand.

The Gini Index, or Gini coefficient, is a statistical measure used to gauge the distribution of income or wealth within a population, indicating the level of inequality.

Globalization refers to the process of increased interconnectedness and interdependence among countries worldwide, primarily driven by trade, investment, and technology.

Globalization refers to the process by which businesses or other organizations develop international influence or start operating on an international scale, impacting economic activities across the globe.

Goodwill is an intangible asset that arises when a company acquires another business for more than the fair value of its identifiable tangible and intangible assets.

The Gordon Growth Model (GGM) is a method used to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.

A government bond is a type of debt security issued by a government to support government spending and obligations.

The Great Depression was a severe worldwide economic downturn that lasted from 1929 until the late 1930s, marked by widespread unemployment, deflation, and financial distress.

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Gross margin is a financial metric that measures the percentage of total sales revenue that exceeds the cost of goods sold (COGS). It indicates how efficiently a company uses labor and supplies in the production process.

Gross National Product (GNP) measures the total economic output produced by the residents of a country, regardless of where the production takes place.

Gross profit is the total revenue of a company minus the cost of goods sold (COGS), representing the profit a company makes after deducting the costs associated with making and selling its products.

Gross profit margin is a financial metric that measures the percentage of revenue that exceeds the cost of goods sold (COGS). It indicates how efficiently a company uses its resources to produce and sell products at a profit.

Hard skills are specific, teachable abilities or skill sets that are easy to quantify and typically job-specific, such as proficiency in a foreign language, typing speed, or computer programming.

The harmonic mean is a type of average, calculated by dividing the number of observations by the sum of the reciprocals of the observations.

The Head and Shoulders pattern is a chart formation that predicts a bullish-to-bearish trend reversal. It is recognized by three peaks, with the middle peak (head) being the highest and the two outside peaks (shoulders) being lower and roughly equal in height.

A hedge is an investment strategy used to reduce the risk of adverse price movements in an asset by taking an offsetting position in a related asset.

A hedge fund is a pooled investment fund that employs different strategies to earn active returns for its investors, often using complex portfolios including derivatives and leverage.

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration used to determine the level of competition among firms within an industry.

Heteroskedasticity refers to the condition in which the variability of a variable is unequal across the range of values of a second variable that predicts it.

The High-Low Method is a cost accounting technique used to estimate the fixed and variable components of a company's costs.

A High-Net-Worth Individual (HNWI) is a classification used in the financial services industry to denote an individual with a high level of liquid financial assets.

A holding company is a type of business entity that owns enough voting stock in other companies to control their policies and management without being directly involved in their day-to-day operations.

Horizontal integration is a business strategy where a company acquires or merges with other companies at the same level of the supply chain in a similar or related industry.

A hostile takeover occurs when one company attempts to acquire another without the consent or cooperation of the target company's management.

Human capital refers to the economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Hurdle rate is the minimum rate of return on an investment that is required by investors or managers to proceed with the project.

Hypothesis testing is a statistical method used to make decisions about the validity of a claim based on sample data.

Hypothesis testing is a statistical method used to make decisions about the validity of a proposed hypothesis by analyzing sample data.

IA-1092 SEC Release refers to a specific regulatory guideline issued by the U.S. Securities and Exchange Commission (SEC) that defines the activities that qualify an individual or entity as an investment adviser.

An income statement is a financial document that summarizes a company's revenues, expenses, and profits over a specific period, showing how the revenue is transformed into the net income.

An index fund is a type of mutual fund or exchange-traded fund (ETF) designed to replicate the performance of a specific market index.

An Individual Retirement Account (IRA) is a tax-advantaged investment tool designed to help individuals save for retirement.

The Industrial Revolution was a period of major industrialization that took place during the late 1700s and early 1800s, marked by a shift from agrarian economies to large-scale manufacturing and urbanization.

An inferior good is a type of product whose demand decreases as the income of consumers increases, opposite to normal goods.

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.

An Initial Public Offering (IPO) is the process by which a private company becomes publicly traded by offering its shares to the public for the first time.

Insider trading involves the buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

The Interest Coverage Ratio (ICR) is a financial metric used to determine how easily a company can pay interest on its outstanding debt with its current earnings.

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments by calculating the rate of return at which the net present value of all cash flows (both positive and negative) from a particular investment equals zero.

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation and presentation of financial statements globally.

Inventory Turnover is a financial ratio that measures how often a company sells and replaces its stock of goods during a specific period.

An inverted yield curve occurs when long-term debt instruments have a lower yield than short-term debt instruments, which is contrary to the normal market condition.

The invisible hand is a metaphor used by economist Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society as a whole.

The J-Curve is a graphical representation that shows an initial decline followed by a significant improvement over time.

The January Effect is a seasonal increase in stock prices during the month of January, often attributed to the increase in buying which follows the sell-off for tax purposes at the end of the year.

Japanese Government Bonds (JGBs) are debt securities issued by the government of Japan to finance its fiscal deficits and manage public financial needs.

Jensen's Measure, also known as Jensen's Alpha, is a performance metric that evaluates the excess return of an investment portfolio over the predicted return by the Capital Asset Pricing Model (CAPM).

The job market refers to the availability of employment and the demand for labor as determined by employers.

John Maynard Keynes was a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Joint probability is the likelihood of two or more events occurring simultaneously.

A joint venture (JV) is a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders, with each shareholder owning a portion of the company proportional to their shareholding.

Joseph Schumpeter was an Austrian economist known for his theories on business cycles and economic development, particularly his concept of 'creative destruction'.

The Japanese Yen (JPY) is the official currency of Japan, widely used in international finance as a major reserve currency.

A junk bond is a high-risk, high-yield debt security rated below investment grade by major credit rating agencies.

Jurisdiction risk refers to the potential financial losses that can occur due to changes in a country's legal, regulatory, or political environment.

Just In Time (JIT) is a management strategy that aligns raw-material orders from suppliers directly with production schedules to minimize inventory costs and increase efficiency.

Kaizen is a Japanese business philosophy that focuses on continuous improvement in all aspects of operations, often applied to enhance efficiency and reduce waste.

Karl Marx was a 19th-century philosopher, economist, and political theorist whose ideas and writings laid the foundation for modern socialism and communism.

Keltner Channel is a technical analysis indicator used to identify trend direction and volatility in the price of an asset by creating bands around an exponential moving average.

A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes.

Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively a company is achieving key business objectives.

Key rate duration measures the sensitivity of the value of a bond or bond portfolio to changes in interest rates at specific maturities.

Keynesian Economics is a theory of total spending in the economy (aggregate demand) and its effects on output and inflation, developed by the economist John Maynard Keynes.

The Klinger Oscillator is a technical analysis indicator used to determine long-term trends of money flow while being sensitive to short-term fluctuations.

A knock-in option is a type of barrier option that only comes into existence if the underlying asset reaches a certain price.

A knock-out option is a type of barrier option that becomes void if the underlying asset's price reaches a specified level, known as the knock-out barrier.

The Know Sure Thing (KST) is a momentum oscillator used in technical analysis to gauge the overall trend of a security by combining rates of change across four different time frames.

A knowledge economy is an economic system primarily based on the production, distribution, and use of knowledge and information, rather than physical goods or manual labor.

Knowledge Process Outsourcing (KPO) refers to the outsourcing of high-level tasks that require specialized knowledge and expertise, typically to save costs and access skilled expertise not available in-house.

The Korean Composite Stock Price Indexes (KOSPI) is a major stock market index that tracks the performance of all common stocks listed on the Stock Market Division of the Korea Exchange.

Kurtosis is a statistical measure that describes the shape of a distribution's tails in relation to its overall shape, indicating the likelihood of extreme outcomes.

Kurtosis is a statistical measure that describes the shape of a distribution's tails in relation to its overall shape, indicating how outlier-prone the distribution is.

Laissez-faire is an economic philosophy advocating minimal government intervention in the market and the economy.

The Law of Demand states that, all else being equal, as the price of a product decreases, the quantity demanded increases, and vice versa.

The law of supply states that, all else being equal, an increase in price results in an increase in the quantity supplied.

The law of supply and demand is a fundamental economic principle stating that the price of a good or service is determined by the quantity available (supply) and the desire of buyers for it (demand).

Leadership in finance refers to the ability of individuals or groups to guide financial strategies and manage financial resources effectively to achieve organizational goals.

Leverage in finance refers to the use of borrowed funds to increase the potential return of an investment.

A leveraged buyout (LBO) is a financial transaction where a company is acquired using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired and those of the acquiring company are often used as collateral.

A limit order is an instruction to buy or sell a security at a specified price or better.

A Limited Partnership (LP) is a business structure where one or more general partners manage the business and are personally liable for its debts, while one or more limited partners contribute capital and have liability limited to their investment.

Liquidation is the process of bringing a business to an end and distributing its assets to claimants, typically occurring when a company is insolvent.

Liquidity refers to how quickly and easily an asset can be converted into cash without significantly affecting its price.

Ltd., or Limited, refers to a type of corporate structure where the shareholders' liability is limited to the capital they have invested in the company.

Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate changes in the economy such as GDP, unemployment rates, and inflation.

Management by Objectives (MBO) is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.

A margin call occurs when the value of an investor's margin account falls below the broker's required amount, prompting the investor to add funds or securities to meet the minimum margin requirement.

Margin in investing refers to borrowing money from a broker to purchase stock, allowing investors to buy more shares than they could with just their available funds.

Market share refers to the percentage of an industry's total sales that is earned by a particular company over a specific time period.

Marketing refers to the activities a company undertakes to promote the buying or selling of a product or service.

A marketing strategy is a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services.

A Master Limited Partnership (MLP) is a type of investment vehicle that combines the tax benefits of a partnership with the liquidity of publicly traded stocks.

Mercantilism is an economic theory and practice that promotes governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers.

Mergers and Acquisitions (M&A) refer to the process where one company combines with or purchases another to strengthen its position in the market.

Milton Friedman was an influential American economist known for his strong belief in free-market capitalism and his significant contributions to economic theory and policy.

A mixed economic system combines elements of both free markets and government intervention to guide economic decisions.

Monopolistic competition is a market structure where many firms sell products that are similar but not identical, allowing for significant differentiation and some degree of market power.

Monte Carlo Simulation is a statistical technique used to model and understand the impact of risk and uncertainty in prediction and forecasting models.

Moore's Law is the observation that the number of transistors on a microchip doubles approximately every two years, while the cost of computers is halved.

MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price.

Multilevel marketing (MLM) is a strategy some direct sales companies use to encourage existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales.

A mutual fund is an investment vehicle made up of a pool of funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.

Mutually exclusive refers to options or decisions that cannot be chosen or pursued simultaneously.

Nasdaq is a global electronic marketplace for buying and selling securities, primarily known for its focus on technology and internet-related stocks.

Nash Equilibrium is a concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Negative correlation refers to a relationship between two variables where one variable increases as the other decreases.

Neoliberalism is an economic and political ideology that emphasizes free-market capitalism, deregulation of industries, and reduction in government spending on social services.

Net Asset Value (NAV) is the total value of a fund's assets minus its liabilities, expressed on a per-share basis.

Net Income (NI) is the total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Net Profit Margin is a financial ratio that measures the percentage of net income derived from total revenues, indicating how much of each dollar earned by the company is translated into profits.

Net worth is the total value of an individual's or entity's assets minus their liabilities.

Network marketing is a business model where individuals sell products or services through a network of distributors, earning commissions based on their own sales and the sales of their recruited team.

Networking in finance refers to the process of building and maintaining relationships with professionals and stakeholders in the financial industry to enhance knowledge, opportunities, and career growth.

The New York Stock Exchange (NYSE) is one of the largest stock exchanges in the world, where stocks, bonds, and other securities are bought and sold.

Nominal value refers to the face value of money or securities without adjustment for inflation or other factors that affect value over time.

Normal distribution, often referred to as the bell curve, is a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

NAFTA is a treaty made between the United States, Canada, and Mexico to eliminate most tariffs on products traded among them, thereby increasing trade and investment.

Notional value refers to the total value of a leveraged position's assets. This value is used in derivatives trading to determine the total amount involved in the trade, rather than the cost of entering the trade.

The null hypothesis is a type of hypothesis used in statistics that proposes no significant difference exists between specified populations, any observed difference being due to sampling or experimental error.

An oligopoly is a market structure characterized by a small number of firms that dominate the market, leading to limited competition.

An onerous contract is a contract where the costs to fulfill the obligations exceed the economic benefits expected to be received.

Operating income, also known as operating profit, represents the total earnings from a company's core business operations, excluding non-operating income, taxes, and interest expenses.

Operating leverage is a measure of how sensitive a company's operating income is to changes in its sales volume, highlighting the impact of fixed costs on profitability.

Operating margin is a profitability ratio that measures the percentage of profit a company makes from its operations, relative to its revenue.

Operations management involves the planning, organizing, and supervising of production, manufacturing, or the provision of services. It ensures that an organization’s resources are used efficiently and effectively to meet business objectives.

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

An option is a financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date.

OPEC is an intergovernmental organization of oil-exporting countries that coordinates and unifies petroleum policies among member countries to ensure the stabilization of oil markets.

Organizational Behavior (OB) is the study of how people interact within groups in a workplace setting and how this affects the organization's structure, efficiency, and effectiveness.

Organizational structure refers to the system of hierarchy and arrangement within a company that determines how roles, responsibilities, and authority are distributed.

An Original Equipment Manufacturer (OEM) refers to a company that produces parts and equipment that may be marketed by another manufacturer.

Original Issue Discount (OID) refers to the difference between the par value of a bond at maturity and its lower issue price. It represents the interest earned by the bondholder over the life of the bond.

Out of the Money (OTM) refers to an options contract where the strike price is less favorable compared to the current market price of the underlying asset, making it unprofitable to exercise.

Over-the-counter (OTC) refers to the process of trading securities for companies that are not listed on a formal exchange. Transactions occur via a broker-dealer network as opposed to a centralized exchange.

The Over-The-Counter (OTC) market refers to a decentralized market where trading of financial instruments, including stocks, bonds, and derivatives, is conducted directly between two parties without a central exchange.

An Overnight Index Swap (OIS) is a financial derivative where two parties agree to exchange, over a set period, the interest earned on a principal amount calculated using a daily overnight rate for a fixed rate of interest.

The p-value is a statistical measure that helps determine the significance of the results obtained from a data set, indicating the probability of observing results at least as extreme as those measured when the null hypothesis is true.

Penny stocks refer to shares of small companies that trade for less than $5 per share, often characterized by high volatility and low market capitalization.

Per Capita GDP measures the average economic output per person in a specific area, typically a country, by dividing the total GDP by the population.

Perfect competition is a market structure where numerous small firms compete against each other, and none can influence market prices due to their size.

The Phillips Curve is an economic concept that illustrates an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The scheme generates returns for earlier investors by acquiring new investors.

Porter's Five Forces is a framework for analyzing the competitive environment of an industry. It helps businesses assess the potential profitability of an industry by examining five key sources of competitive pressure.

Positive correlation occurs when two variables move in the same direction, meaning as one variable increases, the other also increases.

Pre-market trading refers to the buying and selling of stocks that occurs before the official opening of the stock market.

Preference shares are a type of stock that provides shareholders with preferential rights to dividends and asset distribution over common stockholders, but typically do not carry voting rights.

Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shareholders typically receive dividends before common shareholders and have priority in the event of liquidation, but they usually do not have voting rights.

Present Value (PV) is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

The Price-to-Earnings Ratio (P/E Ratio) is a valuation metric used to assess how much investors are paying for a dollar of a company's earnings.

The Price/Earnings-to-Growth (PEG) Ratio is a stock valuation metric that measures the relationship between the price of a stock, its earnings per share, and its expected growth rate.

Pro rata is a Latin term used to describe a proportionate allocation. It refers to the equitable distribution of something based on a certain rate, percentage, or amount.

The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It's a key indicator of inflation at the wholesale level.

Profit is the financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

A Profit and Loss Statement (P&L) is a financial report that summarizes the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year, to show a company's net earnings or losses.

A prospectus is a formal legal document that provides details about an investment offering to the public, typically used by companies during an initial public offering (IPO) or by mutual funds to outline fund objectives, strategies, and risks.

A Public Limited Company (PLC) is a type of corporation in the UK and some other countries that is permitted to offer its shares to the public via a stock exchange.

A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

The Q Ratio, or Tobin's Q, is a financial metric that compares the market value of a company's assets to their replacement cost.

Quadruple Witching refers to a day when stock index futures, stock index options, stock options, and single stock futures all expire simultaneously, typically leading to increased trading volume and market volatility.

A qualified dividend is a type of dividend that meets specific criteria set by the IRS and is taxed at the lower capital gains tax rates rather than ordinary income tax rates.

A Qualified Institutional Buyer (QIB) is an entity that is legally recognized to invest in securities that may not be registered with financial authorities, typically due to their financial sophistication and capacity.

Qualified Institutional Placement (QIP) is a capital-raising tool whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible to equity shares to a qualified institutional buyer.

A qualified opinion is a statement issued by an auditor indicating that most parts of an organization's financial statements are accurate, but some areas are uncertain or did not follow GAAP.

A qualified retirement plan is a type of retirement savings plan that offers tax advantages and is established by an employer for the benefit of its employees.

Qualitative analysis in finance involves assessing non-quantifiable factors that influence investment decisions, such as management quality, industry cycles, and brand strength.

Quality control in finance refers to the systematic process of ensuring that financial products, services, and operations meet specific standards of quality and compliance.

Quality management in finance refers to the systematic process of ensuring that financial products, services, and operations meet consistent standards of excellence.

Quality of earnings refers to the extent to which a company's reported income reflects its true economic performance, emphasizing the sustainability and reliability of its income sources.

Quantitative analysis (QA) in finance involves the use of mathematical and statistical techniques to evaluate investment opportunities and financial markets.

Quantitative trading involves using mathematical models to make trading decisions, typically executed by software and based on quantitative analysis.

Quantity demanded refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level, within a given time period.

A quarter refers to one-fourth of a year and is used in business and finance to divide the calendar year into four three-month periods, typically for reporting and forecasting purposes.

Quarter on Quarter (QOQ) is a comparative measure used to evaluate the financial or operational performance of a company between one fiscal quarter and the subsequent quarter.

Quick assets are current assets that can be quickly converted into cash without losing value, typically within 90 days.

The Quick Ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets without relying on inventory.

Quintiles are a statistical measure used to divide a dataset into five equal parts, each representing 20% of the population. This method is often used in finance to assess income distribution, asset allocation, or performance metrics.

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a specified period.

R-Squared is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index.

R-Squared is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index.

Rate of Return (RoR) is a financial metric used to measure the gain or loss on an investment relative to its cost.

Rational Choice Theory is an economic principle that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate, allowing investors to earn a share of the income produced without having to buy, manage, or finance any properties themselves.

Real Gross Domestic Product (GDP) measures the value of all goods and services produced by an economy, adjusted for inflation, over a specific period.

The receivables turnover ratio is a financial metric that measures how efficiently a company collects its accounts receivable. It indicates how many times a company's receivables are converted into cash in a given period.

A Registered Investment Advisor (RIA) is a firm or individual who advises clients on investments and manages their portfolios, adhering to a fiduciary standard that requires them to act in the best interests of their clients.

Regression is a statistical method used to determine the relationship between a dependent variable and one or more independent variables.

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements, typically used to identify overbought or oversold conditions in a market.

A renewable resource is a natural resource that can replenish itself naturally over time, making it sustainable for ongoing use.

A repurchase agreement (repo) is a short-term borrowing for dealers in government securities, where the dealer sells the securities to investors with an agreement to repurchase them at a higher price on a future date.

Required Minimum Distribution (RMD) refers to the minimum amount that retirees must withdraw annually from their retirement accounts, such as IRAs and 401(k)s, starting at a certain age.

Retained earnings refer to the portion of net income left over for a business after it has paid out dividends to its shareholders. These earnings are reinvested into the business or held as a reserve for future use.

Return on Assets (ROA) is a financial ratio that measures how effectively a company uses its assets to generate profit.

Return on Equity (ROE) is a financial ratio that measures the profitability of a company relative to its shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Return on Invested Capital (ROIC) is a profitability ratio that measures how effectively a company uses its capital to generate profits.

Return on Investment (ROI) is a financial metric used to measure the efficiency of an investment, indicating the ratio of net profit to the initial cost of the investment.

A Roth 401(k) is a type of retirement savings plan that allows employees to contribute after-tax dollars, with withdrawals in retirement being tax-free.

A Roth IRA is a type of individual retirement account that allows for tax-free growth and tax-free withdrawals in retirement, provided certain conditions are met.

The Rule of 72 is a simple formula used to estimate the number of years required to double an investment at a given annual fixed rate of return.

The Russell 2000 Index is a stock market index that measures the performance of the 2,000 smallest companies listed on the Russell 3000 Index, representing the small-cap segment of the U.S. equity universe.

The S&P 500 Index is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

The Sarbanes-Oxley Act of 2002 (SOX) is a U.S. federal law that established sweeping auditing and financial regulations for public companies to protect investors from fraudulent financial reporting.

The Securities and Exchange Commission (SEC) is a U.S. government agency responsible for regulating the securities markets and protecting investors.

In finance, a security is a tradable financial asset that holds some type of monetary value, which can be in the form of stocks, bonds, or options.

Series 63, also known as the Uniform Securities Agent State Law Examination, is a professional exam for securities agents in the United States, required by most states to sell securities.

The Series 7 is a license issued by the Financial Industry Regulatory Authority (FINRA) that allows individuals to sell a broad range of securities.

The Sharpe Ratio is a measure used to assess the performance of an investment by adjusting for its risk.

Short selling is a trading strategy where an investor borrows shares of a stock or other asset that they believe will decrease in value, sells them at the current market price, and plans to buy them back later at a lower price to return to the lender.

Social media refers to digital platforms that enable users to create, share, and engage with content, often influencing consumer behavior and market trends.

Social responsibility in finance refers to the practice of making investment decisions that consider not only financial returns but also social, environmental, and ethical factors.

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of values.

The Stochastic Oscillator is a momentum indicator used in technical analysis that compares a particular closing price of a security to a range of its prices over a certain period of time.

A stock represents ownership in a company, giving the holder a claim on part of the company's assets and earnings.

A Stock Keeping Unit (SKU) is a unique identifier for each distinct product and service that can be purchased.

The stock market is a collection of markets where stocks (shares of ownership in businesses) are bought, sold, and issued, reflecting the economic trends and the performance of companies.

A stop-limit order is a type of stock trading order that combines the features of a stop order and a limit order. It triggers a limit order to buy or sell a stock once the stock reaches a specified stop price.

A straddle is an options trading strategy involving the purchase or sale of both a call and a put option at the same strike price and expiration date.

A subsidiary is a company that is controlled by another company, known as the parent company, through ownership of more than 50% of its voting stock.

Sustainability in finance refers to investment strategies that consider environmental, social, and governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact.

SWOT Analysis is a strategic planning tool used to identify and assess the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

Systematic sampling is a statistical method used to select a random subset of data from a larger dataset by following a fixed periodic interval.

A T-test is a type of inferential statistic used to determine if there is a significant difference between the means of two groups, which may be related in certain features.

Technical analysis is a method used to evaluate and predict future prices of securities based on historical price and volume data.

Terminal Value (TV) is the estimated future value of a business or cash flows beyond a specific forecast period, used in financial modeling to assess long-term performance.

The Four Ps of Marketing is a framework used to enhance the components of the marketing mix—product, price, place, and promotion—which are controllable, but influenced by external conditions in the business environment.

Total Debt to Total Assets is a financial ratio that measures the percentage of a company's assets that are financed through debt.

Total Expense Ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, expressed as a percentage of the fund's total assets.

Total Quality Management (TQM) is a comprehensive management approach focused on continuous improvement in all aspects of an organization, aiming to ensure long-term customer satisfaction and operational efficiency.

Total Shareholder Return (TSR) is a metric used to assess the total returns generated for shareholders from a stock investment, including both capital gains and dividends.

Trailing 12 Months (TTM) refers to the most recent 12-month period of a company's financial performance used for reporting purposes.

Tranches are portions or segments of debt or security offerings that are structured to divide risk or other characteristics in ways that are appealing to different investors.

Treasury Bills, or T-Bills, are short-term government securities issued by the U.S. Treasury with maturities ranging from a few days to 52 weeks. They are sold at a discount and do not pay interest before maturity.

Treasury Inflation-Protected Securities (TIPS) are government bonds that are indexed to inflation, designed to protect investors from the negative effects of rising prices by adjusting the principal value of the bond with inflation.

Triple Bottom Line (TBL) is a sustainability framework that evaluates a company's performance based on three dimensions: social, environmental, and financial.

A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.

A trust fund is a legal entity created to hold assets for the benefit of specific individuals or organizations, managed by a trustee.

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Generation X (Gen X) refers to the demographic cohort born between the early 1960s and early 1980s, known for its unique financial behaviors and challenges.

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power over time.

A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. This network includes different activities, people, entities, information, and resources.

In finance, a 'spread' refers to the difference between two prices, rates, or yields. It is commonly used to measure the discrepancy between the buying and selling price of securities or the difference between bid and ask prices.

The term 'Third World' historically refers to countries that were neither aligned with NATO (First World) nor the Communist Bloc (Second World) during the Cold War, often characterized by lower economic development and higher poverty rates.