Go to Token Metrics
All Collections
Investment Dictionary
Investment Dictionary
Investment terms and their definitions.
23 articles in this collection
Written by
Muhammad Azeem
- A -
Alpha
A measure of the active return on an investment, the performance of that investment compared with a suitable market index.
Written by
Muhammad Azeem
Updated over a week ago
Annualize
A procedure where figures covering a period of less than one year are extended to cover a 12-month period.
Written by
Muhammad Azeem
Updated over a week ago
Appreciation
The increase in the value of an asset over time.
Written by
Muhammad Azeem
Updated over a week ago
- B -
Benchmark
A standard against which the performance of an individual security or group of securities is measured.
Written by
Muhammad Azeem
Updated over a week ago
Beta
A measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.
Written by
Muhammad Azeem
Updated over a week ago
Blue Chip
A stock in a corporation with a national reputation for quality, reliability, and the ability to operate profitably in good and bad times.
Written by
Muhammad Azeem
Updated over a week ago
Breakpoint
A point in mutual funds at which the amount invested reduces the sales charge.
Written by
Muhammad Azeem
Updated over a week ago
Bull
A stock market speculator who buys a holding in a stock in the expectation that in the very short-term it will rise in value.
Written by
Muhammad Azeem
Updated over a week ago
- C -
Cut-off Time
A period in a day after which no transactions are accepted for that trading day.
Written by
Muhammad Azeem
Updated over a week ago
- D -
Diversification
The process of owning different investments in order to reduce the effects of volatility in a portfolio.
Written by
Muhammad Azeem
Updated over a week ago
- E -
Earnings Per Share (EPS)
The monetary value of earnings per outstanding share of common stock for a company.
Written by
Muhammad Azeem
Updated over a week ago
- G -
Growth Stock
A stock of a company that generates substantial and sustainable positive cash flow than the average company within the same industry.
Written by
Muhammad Azeem
Updated over a week ago
- I -
Index
A measurement of a section of the stock market.
Written by
Muhammad Azeem
Updated over a week ago
Investment Fund
A way of investing money alongside other investors.
Written by
Muhammad Azeem
Updated over a week ago
- L -
Liquidity
A market's feature whereby an individual or firm can quickly purchase or sell an asset.
Written by
Muhammad Azeem
Updated over a week ago
- P -
P/B Ratio
A ratio used to compare company's market price to its book value.
Written by
Muhammad Azeem
Updated over a week ago
P/E Ratio
The ratio of a company's share (stock) price to the company's earnings per share.
Written by
Muhammad Azeem
Updated over a week ago
- R -
Recession
A business cycle contraction when there is a general decline in economic activity.
Written by
Muhammad Azeem
Updated over a week ago
Risk Aversion
The behavior of humans who, when exposed to uncertainty, attempt to lower that uncertainty.
Written by
Muhammad Azeem
Updated over a week ago
- S -
Sharpe Ratio
A way to examine the performance of an investment by adjusting for its risk.
Written by
Muhammad Azeem
Updated over a week ago
Standard Deviation
A measure to quantify the amount of variation or dispersion of a set of data values.
Written by
Muhammad Azeem
Updated over a week ago
- T -
Turn-Over Ratio
The percentage of the portfolio's holdings that have been replaced in a given year.
Written by
Muhammad Azeem
Updated over a week ago
- V -
Valuation
A process to determine the present value of an asset.
Written by
Muhammad Azeem
Updated over a week ago