- Alpha: The return of the stock in excess of risk. The ‘profit margin’
- Assets: Items that a business or individual owns that creates value and worth and can be converted to cash.
- Balance Sheet: a statement that shows assets, liabilities, and equity.
- Beta: The ratio showing the broker how inline the security is with the market.
- Bond: It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest.
- Buy-Side: refer to advising institutions concerned with buying investment services.
- Credit: the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
- Equity: Value that you put into a business or asset.
- Inflation: Overtime money loses value so inflation changes the value of money in accordance with current time and current prices in the market.
- Interest Rate: The rate of interest that will accumulate when you lend money.
- Liability: Debts, claims, or potential losses for an individual or organization.
- Rate of Return: Think of this as a reward for ‘gambling’ your money. This is the money you get back from making an investment. The ‘cost’ of giving up your money for a certain period of time.
- Security: Financial tool, ex. Stock
- Short/short position: The sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is motivated by the belief that a security’s price will decline, enabling it to be bought back at a lower price to make a profit.
- Spread: The difference between the bid and the ask price of a security or asset.
- Sell-side: The part of the financial industry involved with the creation, promotion, analysis and sale of securities.
- Stock Broker: a regulated professional individual, usually associated with a brokerage firm, who buys and sells stocks and other securities for clients, through a stock exchange in return for a fee.