Financial Glossary

  • Asset Allocation – An investment strategy that helps you balance risk and reward by spreading your investments across a variety of investments.
  • Bear vs. Bull – The “bear” market is synonymous with a market that is going down. A “bull” market means that the market is going up.
  • Candle Stick – The candlestick chart signal shows the day’s high and low and how they compare to the open and close during a given time period.
  • Common Stock – A share that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. They have rights to a company’s assets after bondholders, preferred shareholders, and other debt holders have been paid in full.
  • Directional Movement Indicator – An indicator that helps you identify when a definable trend is present in an instrument. For example: If the DMI is positive it tells whether a symbol is trending bullish. May be identified as DM or DMI.
  • ETF – An Exchange Traded Fund (ETF) holds assets such as stocks, commodities, or bonds, and trades close to its net value over the course of the trading day.
  • Exchange – A central financial market or exchange where people can trade shares of stock or futures.
  • Limit Order – An order placed with a brokerage to buy or sell a set number of shares at a specified price.
  • Market Order – An order that an investor makes through a brokerage service to buy or sell an investment immediately at the best available current price.
  • Moving Average – An indicator frequently used in technical analysis showing the average value of a security’s price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance. 50 and 200 moving averages are used to determine prospects for buying. May be identified as ma or MA.
  • Mutual Funds – Mutual funds are handled by money managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors.
  • Paper Trade – Paper trading is a good way to learn the ropes without risking any money. You get to practice looking at charts and entering in your order with “pretend” money.
  • Preferred Stock – A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock.
  • Price Bar – A reading that shows you the ups and downs of a particular stock.
  • Risk Management – The process of determining what risks exist in an investment and then handling those risks in a way best-suited to your investment objectives.
  • Stock – Ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.
  • Stop Loss Order – An order placed with a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a security position.
  • Trailing Stop Loss Order – It is an order placed with a broker to buy or sell once the stock reaches a certain amount or percentage from the current price. A trailing stop-loss is designed to limit an investor’s loss on a security position.
  • Trend – The general direction of a market or of the price of an asset. Trends can vary in length from short, to intermediate, to long term.
This template supports the sidebar's widgets. Add one or use Full Width layout.