Investment Terms

Investment terms can be confusing but Investing School is here to help straighten it out for you. This list of definitions is constantly being updated so remember to check back often to learn more. If there’s a specific term that you are confused about, remember to contact me and I will write a post to explain it.

0-9 Investment Terms

10-K
1099
3-6-3 Rule
401k
52 Week High
52 Week Low

A…

Absolute Rate
Accounting Currency
Accounting Noise
Accounts Receivable
Accounts Payable
Accrual of Discount
Accrual Rate
Across the Board
Acquisition
Active Investing
Adjustable Peg
Adjustable Rate
Affluenza
Aggregate Demand
Aggregate Supply
Aggregate Risk
Alimony
Alligator Property
Alligator Spread
Alpha
American Depositary Receipt (ADR)
Amortization
Amortization Schedule
Amplitude
Angel Bonds
Angelina Jolie Stock Index
Annual Report
Annuity
Arbitrage Trading
Arrearages
Assessed Value
Asset
Asset Bubble
Ask Price

B…

Badwill
Balance Sheet
Balance Transfer
Balanced Fund
Balloon Loan
Balloon Mortgage
Bailout
Bank
Bank Draft
Bankruptcy
Base Currency
Bear Market
Bear Trap
Beating the Gun
Beta
Bid Ask Spread
Bid Price
Bill of Exchange
Black Market
Black Swan
Blocked Currency
Book Value
Book Value of Equity Per Share
Bond
Bond Fund
Bracketed Order
Buck the Trend
Budget
Bull Market
Bull Put Spread
Bulldog Market
Buyout
Buy and Hold

C…

C Corporation
Call Option
Callable Common Stock
Capital
Capital Commitment
Capital Gain
Capital Lease
Capital Loss
Capital Shares
Capital Surplus
Capitalism
Case Shiller Home Price Index
Cash Account
Cash Flow
Cash On Delivery
Cashier’s Check
Certified Financial Analyst (CFA)
Certified Financial Planner (CFP)
Certificate of Deposit
Chameleon Option
Chapter 11
Child Tax Credit
Choice Market
Churn Rate
Circular Trading
Clawback
Closed Fund
Closing Bell
CNBC
Collar
Commodity
Commodity Futures Trading Commission (CFTC)
Commodity Trading Advisor (CTA)
Common Stock
Competitive Advantage
Consumer Price Index (CPI)
Contract
Consumer
Contingent Beneficiary
Contingent Order
Conversion Rate
Convertibles
Cookie Jar Accounting
Core Competency
Core Holding
Core Inflation
Corner the Market
Corporate Bond
Corporation
Cost of Goods Sold
Cost of Sale
Coverage Ratio
Coverdell ESA
Covered Call
Crawling Peg
Credit Agency
Credit Score
Critical Mass
Curb Trading
Current Ratio
Custodial Account

D…

Day Trader
Death Benefit
Debenture
Debit Card
Debt
Debt Consolidation
Debt Equity Ratio
Debt to Income Ratio
Deed in Lieu
Deer Market
Deferment Period
Deferred Income Tax
Deferred Revenue
Demand
Direct Marketing
Dividend Aristocrats
Dividend Yield
Dogs of the Dow
Dow Jones Industrial Average
Down Volume
Dually Employed with Kids (DEWK)
Dwarf

E…

E-file
Earned Income Credit (EIC)
Earnest Money
Earnings Per Share
EBITDA
Economy of Scale
Effective Date
Elevator Pitch
Employee Stock Options
Enhanced Indexing
Equity
Equity Market
Escrow
Exchange Traded Funds

F…

Face Value
Factoring
Fallen Angel Bond
Federal Reserve
Fiduciary
Filing Extension
First Call
First Time Home Buyer Tax Credit
Fixed Asset
Fixed Cost
Flash Price
Float
FOB (Freight on Board)
Forensic Accounting
Forex
Fractional Share
Franchise
Futures

G…

General Fund
Generally Accepted Accounting Principles (GAAP)
Globalization
Green Investing
Gross Domestic Product (GDP)
Gross Margin
Gross Profit
Gross Spread
Growth Stock

H…

Hang Seng Index
Health Savings Account (HSA)
Hedge Fund
Home Equity Line of Credit (HELOC)
House Rules

I…

Income Shares
Index Funds
Inflation
Initial Public Offering (IPO)
Insider Trading
Interest Rate
Investment Incentive
Irrevocable Trust

J – K

Key Performance Indicators (KPI)

L…

Leading Economic Indicators
Letter of Credit
Letter of Commitment
Leverage
Leveraged Buy Out (LBO)
Leverage Ratio
Liability
Life Cycle Fund
Life Option
Life Settlement
Limit Order
Listing Requirement
LLC (Limited Liability Company)
London Interbank Offered Rate (LIBOR)
London International Financial Futures and Options Exchange (LIFFE)
Long-Run Average Total Cost (LRATC)

M…

Margin
Margin Call
Marker Order
Market Capitalization
Market Indicators
Market Linked Certificate of Deposit (MLCD)
Marriage Penalty
Mergers and Acquisitions (M&A)
Modified Adjusted Gross Income (MAGI)
Monetary Base
Monetary Reserve
Monetary Supply
Money Orders
Monopoly
Mortgage
Mortgage Backed Securities (MBS)
Mutual Fund

N…

Naked Position
Naked Put
NASDAQ
Negotiable
Net Income
Net Profit
Net Working Capital
Net Worth
New York Stock Exchange (NYSE)
No Load Fund
Nonconvertible Currency
Numismatics
NYSE AMEX Composite Index

O…

One Cancels All Order
One Triggers All Order
One Triggers OCO Order
Online Broker
Operating Income
Operating Profit
Opportunity Cost
Options Trading
Oracle of Omaha
Overvalued

P…

Payout
Peer to Peer Lending
Pension Benefit Guaranty Corporation (PBGC)
Preferred Stock (Preferred Shares)
Price to Earnings
Profit and Loss Statement
Probability Distribution
Public Company
Put Option

Q…

Quick Ratio

R…

Reaganomics
Real Estate Investment Trust (REIT)
Realized Gain
Realized Loss
Recession
Relative Strength Index (RSI)
Revenue
Reverse Mortgage
Reverse Stock Split
Revocable Trust
Roth IRA Conversion
Roth Option
Rubinomics
Rule of 72

S…

S Corporation
Secular Market
Securities
Securities and Exchange Commission (SEC)
Sector Rotation
Seed Capital
Self Directed 401k
SEP IRA
Shanghai Stock Exchange
Share Buyback
Share Repurchase
Short Covering
Short Selling
Silent Partner
Single Euro Payment Area (SEPA)
SIPC
Socialism
Sole Proprietorship
Spread
Spread Indicator
Straight Through Processing
Stock Exchange
Stock Split
Stop Order
Surety Bond
Supercede

T…

Tax Deferred
Tax Deferred Savings Plan
Technical Analysis
Tender Offer
Time Deposit
Toronto Stock Exchange (TSX)
Trading Floor
Trailing Stop Order
Treasury Bills
Treasury Bonds
Treasury Notes
Treasury Securities
Trigger Line
Triple Net Lease
Turnover

U…

Undervalued
Unrealized Gain
Unrealized Loss

V…

Value at Risk
Value Stocks
Variable Cost
Venture Capital
Vested Interest
Vesting

W – X

Working Capital

Y – Z

Yield