A

‍Ask Price
The lowest price a seller is willing to accept for an asset.
‍Asset
Anything of value that can be owned or controlled to produce value, such as stocks, bonds, or real estate.
‍Arbitrage
The practice of taking advantage of price differences of the same asset in different markets.

B

‍Balance Sheet
A financial statement showing a company’s assets, liabilities, and equity at a specific point in time.
‍Bear Market
A prolonged period of declining prices in a financial market.
‍Bid Price
The highest price a buyer is willing to pay for an asset.
‍Blue-Chip Stock
Shares in large, well-established, financially stable companies.
‍Bond
A fixed-income investment representing a loan made by an investor to a borrower.
‍Breakout
When the price of an asset moves outside a defined support or resistance level with increased volume.
‍Bull Market
A prolonged period of rising prices in a financial market.

C

‍Capital
Wealth in the form of money or assets used for investment.
‍Capital Gains
Profit earned from selling an asset for more than its purchase price.
‍Correction
A temporary decline in asset prices, typically 10% or more, following an uptrend.
‍Cryptocurrency
A digital currency secured by cryptography, such as Bitcoin or Ethereum.

D

‍Day Trading
The practice of buying and selling financial instruments within the same trading day.
‍Debt
Money borrowed that must be repaid, typically with interest.
‍Dividend
A distribution of a company’s earnings to its shareholders.
‍Dow Jones Industrial Average (DJIA)
A stock market index that tracks 30 large publicly owned U.S. companies.

E

‍Earnings Report
A company’s quarterly or annual financial performance report.
‍ETF (Exchange-Traded Fund)
A type of investment fund traded on stock exchanges, holding assets like stocks or bonds.
‍Equity
Ownership in a company, represented by shares of stock.
‍Exchange Rate
The value of one currency compared to another.

F

‍Federal Reserve (Fed)
The central bank of the United States responsible for monetary policy.
‍Futures Contract
An agreement to buy or sell an asset at a predetermined price at a specified time in the future.
‍Forex (Foreign Exchange)
The global market for trading currencies.

G

‍GDP (Gross Domestic Product)
The total value of goods and services produced in a country over a specific time period.
‍Growth Stock
Shares in a company expected to grow faster than the market average.

H

‍Hedge
An investment strategy used to reduce risk exposure.
‍High-Frequency Trading (HFT)
Automated trading using powerful computers to execute orders in fractions of a second.

I

‍Inflation
A sustained increase in the general price level of goods and services.
‍Index Fund
A type of fund designed to track the performance of a market index like the S&P 500.
‍Initial Public Offering (IPO)
The first time a company’s stock is offered to the public.
‍Interest Rate
The cost of borrowing money, expressed as a percentage.

L

‍Leverage
Using borrowed funds to increase potential returns on investment.
‍Liquidity
How quickly an asset can be converted into cash without affecting its price.
‍Limit Order
An order to buy or sell a security at a specified price or better.

M

‍Margin
Borrowed money used to trade financial assets.
‍Market Capitalization (Market Cap)
The total value of a company’s outstanding shares.
‍Monetary Policy
Actions by a central bank to control the supply of money and interest rates.

O

‍Options
Contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a specific price before expiration.
‍Overbought
A condition where an asset is considered overpriced based on technical indicators.
‍Oversold
A condition where an asset is considered undervalued based on technical indicators.

P

‍P/E Ratio (Price-to-Earnings Ratio)
A valuation measure comparing a company’s share price to its earnings per share.
‍Portfolio
A collection of investments held by an individual or institution.
‍Pump and Dump
A scheme where the price of an asset is artificially inflated and then sold off quickly.

R

‍Recession
A decline in economic activity, typically defined as two consecutive quarters of negative GDP growth.
‍Resistance
A price level at which an asset struggles to rise above.
‍Risk Management
Strategies to minimize potential losses in trading.

S

‍Scalping
A trading strategy that aims to make small profits from tiny price movements.
‍Short Selling
The practice of selling borrowed securities with the intention of buying them back later at a lower price.
‍Stop-Loss Order
An order to sell an asset once it reaches a certain price, used to limit losses.
‍Support
A price level at which an asset tends to stop falling.

T

‍Technical Analysis
The study of price charts and indicators to predict future market movements.
Trading Volume
The total number of shares or contracts traded in a market during a specific time.
‍Treasury Bonds
Long-term government debt securities issued by the U.S. Treasury.

V

‍Volatility
The degree of variation in an asset’s trading prices over time.
‍Volume
The total amount of a security traded during a given period.

Y

‍Yield
The income return on an investment, usually expressed as a percentage.
‍Yield Curve
A graph showing the relationship between interest rates and bond maturities.

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