Token Metrics

Ryan John Barcelona

Investment Dictionary

A measure of the active return on an investment, the performance of that investment compared with a suitable market index.

Alpha

A procedure where figures covering a period of less than one year are extended to cover a 12-month period.

Annualize

The increase in the value of an asset over time.

Appreciation

- A -

A standard against which the performance of an individual security or group of securities is measured.

Benchmark

A measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.

Beta

A stock in a corporation with a national reputation for quality, reliability, and the ability to operate profitably in good and bad times.

Blue Chip

A point in mutual funds at which the amount invested reduces the sales charge.

Breakpoint

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.

Bull

- B -

A period in a day after which no transactions are accepted for that trading day.

Cut-off Time

- C -

The process of owning different investments in order to reduce the effects of volatility in a portfolio.

Diversification

- D -

The monetary value of earnings per outstanding share of common stock for a company.

Earnings Per Share (EPS)

- E -

A stock of a company that generates substantial and sustainable positive cash flow than the average company within the same industry.

Growth Stock

- G -

A measurement of a section of the stock market.

Index

A way of investing money alongside other investors.

Investment Fund

- I -

A market's feature whereby an individual or firm can quickly purchase or sell an asset.

Liquidity

- L -

A ratio used to compare company's market price to its book value.

P/B Ratio

The ratio of a company's share (stock) price to the company's earnings per share.

P/E Ratio

- P -

A business cycle contraction when there is a general decline in economic activity.

Recession

The behavior of humans who, when exposed to uncertainty, attempt to lower that uncertainty.

Risk Aversion

- R -

A way to examine the performance of an investment by adjusting for its risk.

Sharpe Ratio

A measure to quantify the amount of variation or dispersion of a set of data values.

Standard Deviation

- S -

The percentage of the portfolio's holdings that have been replaced in a given year.