Talk Like a Trader

The gain or loss of an investment without comparison to a benchmark.

A method allowing larger depreciation expenses earlier in an asset’s life.

Money owed to a company by customers for goods/services delivered.

An individual or entity qualified to invest in private placements.

A system where revenue and expenses are recorded when they are earned or incurred, not when cash is exchanged.

Interest that has accumulated on a bond but hasn’t been paid yet.

Portfolio management strategy that involves frequent trading and research to outperform the market.

A fund where a manager makes investment decisions to outperform a benchmark.

The original cost of an asset adjusted for improvements, depreciation, or deductions.

Your total gross income minus specific deductions.

The return on an investment after all taxes are deducted.

A measure of an investment’s return above a benchmark.

The ability of a strategy or manager to consistently outperform the market.

An option that can be exercised at any time before expiration.

The gradual reduction of a debt over time through regular payments.

The yearly interest rate charged on borrowed money, including fees.

Buying and selling the same asset in different markets to profit from price differences.

The process of dividing investments among different asset categories like stocks, bonds, and cash.

A situation where asset prices greatly exceed their intrinsic value due to exuberant demand.

Sales divided by total assets; shows how efficiently assets generate revenue.

A financial security backed by a pool of assets like loans or receivables.

The maximum number of shares a company can legally issue.

A fee paid when selling mutual fund shares.

A legal workaround to contribute to a Roth IRA for high earners.

Evaluating a trading strategy using historical data.

Moving debt from one credit card to another, often with lower rates.

A large final payment due at the end of a loan term.

When many depositors withdraw funds simultaneously due to fears the bank will fail.

One hundredth of a percentage point (0.01%).

Risk that a hedge will not move perfectly with the asset it’s meant to offset.

Comparing performance metrics against industry standards or competitors.

A measure of a stock’s volatility compared to the market.

Measures how a stock moves relative to the market.

Difference between the highest buyer bid and lowest seller ask.

A nationally recognized, well-established, and financially sound company’s stock.

State securities laws to protect investors from fraud.

Portfolio of bonds with staggered maturities for consistent income.

The level at which total revenue equals total costs.

A benefit plan offering a menu of pre-tax options to employees.

A bond that can be redeemed by the issuer before maturity.

A CD that can be redeemed by the bank before maturity.

Preferred shares that can be repurchased by the issuer at a set price.

A financial instrument that can be redeemed by the issuer before maturity.

A spreadsheet showing equity ownership, valuation, and dilution.

Ratio of a bank’s capital to its risk-weighted assets.

Money spent on acquiring or improving fixed assets.

Profit from selling an asset for more than its purchase price.

Payout of profits from asset sales within a fund.

Financial statement showing inflows and outflows of cash.

Cash and cash equivalents divided by current liabilities.

A clause that allows money already paid to be returned under specific conditions.

A complex bond backed by a pool of loans or other debt instruments.

Raw materials or agricultural products that can be bought and sold.

When futures prices are higher than expected spot price.

The required return to make an investment worthwhile.

A condition in a loan agreement or bond contract.

A contract that transfers credit risk of a borrower.

Ratio of net operating income to debt obligations.

A financial ratio indicating the relative proportion of shareholder equity and debt.

Earnings withheld to be paid at a later date, often for tax benefits.

Money received for goods/services not yet delivered.

A pension plan where employer guarantees specific payouts at retirement.

A sustained decline in general price levels.

Measures how much an option’s price moves with the underlying asset.

Allocation of asset cost over its useful life.

A contract whose value depends on another asset.

Reduction in ownership percentage due to new shares issued.

A company sells shares directly to the public without underwriters.

A bond sold for less than its face value.

The interest rate the Federal Reserve charges commercial banks for short-term loans.

A valuation method estimating future cash flows and discounting them to present value.

Spreading investments across various assets to reduce risk.

A measure of the peak-to-trough decline in portfolio value.

A company with two classes of shares—usually with different voting rights.

A fee for withdrawing from retirement accounts before age 59½.

A company's profit before income taxes are deducted.

A company’s profit divided by its number of outstanding shares.

Earnings per share divided by stock price; inverse of P/E ratio.

Earnings before interest, taxes, depreciation, and amortization.

Data that reflects the health of the economy.

A company’s ability to maintain long-term profits and market share.

Economies that are in transition to becoming developed markets.

Gives employees the right to buy company stock at a set price.

Total firm value: market cap + debt - cash.

The value of ownership in an asset after debts are subtracted.

Raising capital by selling shares of the company.

Extra return expected from stocks over risk-free assets.

A third-party account holding funds until conditions are met.

A bond issued in a currency not native to the country where it is issued.

The date on which a stock trades without the dividend.

Unsecured debt security tied to a market index or strategy.

Annual fee as % of assets under management in a fund.

The nominal value of a bond stated by the issuer.

Selling accounts receivable at a discount for immediate cash.

The price an asset would sell for in an open market.

A rapidly declining stock that’s dangerous to buy too soon.

Acronym for Facebook, Amazon, Netflix, Google (now Meta, Alphabet).

Three-digit score used to assess creditworthiness.

A person or entity legally bound to act in the best interest of another.

The use of math and programming to create new financial products.

A set of expiring tax cuts and spending increases that could hurt the economy.

Government decisions on taxation and spending to influence the economy.

A 12-month period for financial reporting, not always matching calendar year.

Accounting used to detect fraud or disputes.

Annual report required by the SEC with detailed company info.

Cash a company generates after capital expenditures.

Cash left after capital expenditures and operations.

Portion of shares available for public trading.

Evaluating a stock using financial statements and macro trends.

Agreement to buy or sell an asset at a future date for a set price.

Generally Accepted Accounting Principles used in U.S. reporting.

Measures how much delta changes with price.

A municipal bond backed by the full faith and credit of the issuer.

Assumption that a business will continue operating.

Large benefits paid to executives if they’re let go after a merger/acquisition.

A trading order that remains active until filled or manually canceled.

A bond specifically earmarked to fund environmentally friendly projects.

Misleading marketing that exaggerates environmental responsibility.

Total income earned by a country’s residents and businesses.

The total monetary value of all goods and services produced in a country during a specific period.

Sales minus cost of goods sold (COGS), divided by sales.

Total value of goods/services produced by a country’s residents worldwide.

Gross profit divided by revenue; shows profitability after cost of goods sold.

ETF focused on companies with high growth potential.

Percentage increase in a variable over time.

A stock expected to grow revenues or earnings faster than the market.

A reduction applied to asset value for risk adjustment.

A tangible asset with intrinsic value like real estate, gold, or machinery.

An investment made to reduce the risk of adverse price movements.

A private investment fund that uses diverse strategies to generate returns.

The proportion of a position that is hedged to reduce risk.

Pricing model based on attributes of a good.

The peak value a fund must surpass before earning performance fees.

A bond with a lower credit rating and higher interest rates.

Savings account offering higher interest rates than traditional accounts.

A firm that owns other companies' outstanding stock.

The length of time an asset is held before selling.

Total return earned over the time an asset is held.

A savings account for medical expenses with tax benefits.

Minimum required rate of return for a project or investment.

An asset that cannot be quickly sold without significant loss in value.

A market with low trading volume and wide bid-ask spreads.

Permanent reduction in value of asset below book value.

Non-cash donation such as goods or services.

An option with intrinsic value based on market price.

A report showing revenue, expenses, and profit over time.

A statistical measure of the performance of a group of assets.

Profiting from price differences between index and futures.

A fund that tracks a market index like the S&P 500.

Periodic adjustment of index components to reflect market changes.

The rate at which the general level of prices for goods and services rises.

An asset or strategy that protects against the eroding value of money.

Buying/selling a stock based on material non-public info.

Non-physical asset with value, like trademarks, IP, goodwill.

EBIT divided by interest expense.

A financial contract that sets a maximum interest rate on a floating loan.

The perceived or calculated true value of an asset.

Occurs when short-term yields exceed long-term ones.

A graph showing initial losses followed by gains, forming a 'J' shape.

A policy taken out on low-level employees without their knowledge.

Tracking costs for a specific job or project.

The number of people filing for unemployment benefits.

An account shared between two or more individuals.

Pays out for life of both annuitants; lowers monthly payment.

A form of shared property ownership with right of survivorship.

A temporary partnership between parties for a specific project.

A loan that exceeds conforming loan limits set by Fannie Mae/Freddie Mac.

Risk of sudden large price changes affecting options pricing.

Debt that is repaid after senior debt in bankruptcy.

A bond rated below investment grade, offering high yields to offset risk.

A hidden or unnecessary charge on a financial product or service.

Low-value insurance products bundled into loans or credit cards.

Bond rating below investment grade.

IRS form used to report income from partnerships or LLCs.

A tax-deferred retirement plan for self-employed individuals.

Employee critical to the success or operations of a company.

A measurable value that indicates progress toward goals.

A life insurance policy a company takes out on an essential employee.

Central bank rate guiding monetary policy.

Measures bond sensitivity to shifts at specific yield curve points.

An economic philosophy advocating for government intervention during downturns.

A secret or illicit payment for preferential treatment.

An added benefit to a bond or preferred stock (like a warrant).

A bonus deposit by employers into new retirement accounts.

Writing checks between accounts to artificially inflate balances.

An organization’s accumulated know-how and intellectual property.

An investment strategy involving bonds or CDs maturing at different times.

A preliminary agreement outlining terms before a formal contract.

Using borrowed funds to amplify potential returns (and losses).

Measures amount of debt vs equity or assets.

Purchase of a company using significant debt.

ETF designed to amplify daily index returns using derivatives.

An order to buy or sell a stock at a specific price or better.

Partnership with limited personal liability for some or all partners.

How quickly and easily an asset can be converted into cash.

Ratio of liquid assets to expected 30-day outflows.

An event that allows investors or founders to cash out equity.

Extra yield to compensate for illiquidity risk.

Measures a company’s ability to cover short-term obligations.

A situation where interest rates are low but savings remain high.

Compares a loan amount to the value of the asset.

A single large payment instead of installments.

When a company’s management team purchases the business they run.

Borrowing money from a broker to buy more securities than you can afford with cash.

Account allowing you to borrow funds to buy securities.

Number of advancing vs. declining stocks in a market.

The total value of a company’s outstanding shares.

Volume of open buy/sell orders at different price levels.

Entity that provides liquidity by continuously quoting buy/sell prices.

Study of how trades are executed, matched, and priced.

Long and short positions to offset market movement.

Buy/sell instruction to execute immediately at current price.

Point where a product or service has penetrated most potential market.

The smallest amount of money required to open or invest in a fund.

Currency in circulation + reserves at central bank.

Central bank actions that manage the money supply and interest rates.

The illegal process of making large amounts of money appear legal.

A mutual fund investing in short-term, low-risk debt instruments.

A company that insures only one type of risk—often bond defaults.

Uses random variables to simulate possible outcomes.

Bond made from bundled mortgage loans.

A bond issued by state or local governments.

Pool of money from investors managed to buy stocks, bonds, etc.

The per-share value of a mutual fund or ETF.

Difference between ETF/fund market price and NAV.

Net Asset Value Per Share for mutual funds and ETFs.

When a property is worth less than the outstanding mortgage.

A policy where banks are charged to store excess reserves at central banks.

Revenue minus expenses, taxes, and costs.

Difference between interest income earned and paid by banks.

Income from property minus operating expenses (excludes debt).

When deductions exceed income in a tax year.

Present value of future cash flows minus initial investment.

The value of all assets minus all liabilities.

A mutual fund with no sales fees or commissions.

Stated interest rate before adjusting for inflation.

Annual interest payment divided by face value of bond.

An account held in the name of a third party for convenience.

Unique digital asset stored on a blockchain.

Income not from core business, like asset sales or dividends.

A stock option taxed as ordinary income at exercise.

The total value of a leveraged position’s underlying asset.

A mutual fund that creates new shares on demand.

A document outlining management and financial rules for an LLC.

Cash generated from a company’s core operations.

Day-to-day costs of running a business.

Profit from core business operations before taxes/interest.

Sensitivity of profit to changes in sales.

Percentage of revenue left after operating expenses.

Profit from business activities before interest and tax.

Value of the next best alternative you give up.

A list of all available option contracts for a security.

The price paid to buy an options contract.

Financial contracts giving the right, but not obligation, to buy/sell an asset at a set price.

Income taxed at regular income tax rates.

An option with no intrinsic value.

Decentralized market where trading occurs directly between parties.

A condition where an asset has risen too far, too fast.

The face value of a bond, typically $1,000.

Means 'on equal footing'; creditors get equal claim.

Earnings from minimal-effort sources like rentals or dividends.

The percentage of earnings paid out as dividends.

Employer-sponsored retirement plan with guaranteed payouts.

A collection of financial investments held by an individual or institution.

How frequently assets are bought/sold in a fund.

Minimum return investors must earn before profits are split with managers.

Stock with fixed dividends and priority over common shares in liquidation.

The expected future price of a stock, as estimated by analysts.

Compares a company’s stock price to its book value.

Market cap divided by total sales or revenue.

Original sum of money borrowed or invested.

Capital investment into private companies not listed on public exchanges.

Sale of securities to a select group of investors instead of the public.

A financial contract that gives the holder the right to sell an asset at a set price.

Allows retirees to donate IRA funds directly to charity tax-free.

A tax-free withdrawal from Roth accounts after age 59½ and 5-year rule.

A dividend that qualifies for lower long-term capital gains tax rates.

Loan that meets regulatory requirements for affordability.

An employer-sponsored retirement plan that meets IRS requirements.

Stock eligible for partial capital gains exclusion if held 5+ years.

Uses algorithms and data models to make trading decisions.

Professional who uses math and data to guide investments.

Central bank purchases assets to inject money into the economy.

When central banks reduce their balance sheets by selling assets.

A measure of a company’s ability to pay current liabilities without selling inventory.

Time when insiders can't promote or discuss company before/after IPO.

Court order to resolve disputes over real estate ownership.

Statistical measure showing how closely fund tracks benchmark.

The return on an investment after adjusting for inflation.

Yield on a bond minus inflation rate.

Adjusting asset allocation back to target levels.

Restructuring a company’s debt and equity mix.

A preliminary prospectus shared before a public offering.

Real Estate Investment Trust—a company that owns or operates income-producing property.

Momentum indicator showing recent price strength.

Net income divided by total assets.

Net income ÷ shareholder equity.

Net operating profit after tax divided by invested capital.

Total amount of income before expenses.

Company value divided by its revenue.

The level of market risk an investor is comfortable accepting.

Minimum amount retirees must withdraw annually from tax-deferred accounts.

Automated platform that manages portfolios using algorithms.

Net income divided by invested capital.

An individual retirement account where contributions are taxed upfront, but withdrawals are tax-free.

A stock market index tracking the 500 largest U.S. companies.

Loan of stocks/bonds to another party, often for shorting.

Pooling assets into securities that are sold to investors.

IRA where investor chooses nontraditional assets like real estate.

The day securities are officially exchanged for cash.

Company repurchases its own stock from the market.

Reduction in ownership percentage due to new share issuance.

A way to measure performance adjusted for risk.

The % of a stock’s shares sold short but not yet covered.

Investor who provides capital but does not take part in operations.

A fund set aside to repay debt gradually.

The difference between the bid and ask price.

Divides each share into multiple new shares to reduce price.

An order to buy/sell at a specified price or better, triggered at stop level.

An order to sell a security when it reaches a certain price to limit losses.

A debt product with embedded derivatives for customized risk/return.

Right allowing minority shareholders to join a sale by majority owners.

Physical item with monetary value.

Gradual reduction of central bank asset purchases.

The income range taxed at a specific rate.

Account offering tax benefits like IRAs, 401(k)s, HSAs.

An investment account where taxes are paid upon withdrawal, not contribution.

A municipal bond where interest is not taxed federally (and often locally).

Selling losing investments to offset gains elsewhere.

Non-binding agreement outlining terms of an investment deal.

A short abbreviation for a traded company.

The length of time an investor expects to hold an investment before taking money out.

U.S. Treasury bond that adjusts principal with inflation.

All earnings from an investment: price appreciation + dividends/interest.

Difference between fund return and benchmark.

Exchange-traded fund designed to mirror index performance.

A special stock tied to a business unit within a larger company.

A measure using data from the past 12 consecutive months.

U.S. government debt with maturity under 1 year.

A long-term government bond issued by the U.S. Treasury.

Measures how frequently assets are bought/sold in a portfolio.

A fixed portfolio of securities with a set end date.

Extra liability coverage beyond standard policies.

A stock believed to be trading below its intrinsic value.

When the loan balance exceeds the home's market value.

Having less of a sector or asset than benchmark allocation.

A financial firm that manages public offerings like IPOs.

Period after IPO during which insiders can't sell shares.

The process of evaluating and assuming financial risk in exchange for a fee.

The difference between what underwriters pay for securities and the price they sell them at.

Future obligation not backed by current assets.

A privately-held startup valued at over $1 billion.

Private startup valued at $1 billion or more.

A privately held startup valued at $1 billion or more.

A fund structure where investors hold units in a fixed portfolio.

A profit that exists on paper from assets not yet sold.

Debt not backed by collateral.

Loan without collateral; relies on creditworthiness.

Risk specific to a company or industry.

A ceiling on valuation for convertible note investors.

Buying undervalued stocks based on fundamentals.

An annuity with returns based on investment performance.

An interest rate that changes based on a benchmark index.

An interest rate that fluctuates over time.

Equity financing provided to startups and early-stage companies.

Loan capital provided to startups alongside or after equity rounds.

A point where a large portion of equity vests at once.

Timeline over which employee stock or benefits become owned.

A statistical measure of the dispersion of returns for a given asset.

An ETF that tracks volatility indexes like the VIX.

Measures expected volatility in the S&P 500 over 30 days.

Variation in implied volatility across strike prices.

Optional information shared by a company beyond required reporting.

Extra cash reserves banks hold beyond required minimum.

Returning an asset to a lender to avoid repossession.

Ability to vote on corporate matters like board elections.

Wage income reported to IRS from an employer.

IRS form used to request taxpayer identification info.

A security that gives the holder the right to buy a company’s stock at a set price.

A sale of a security at a loss, followed by repurchasing it within 30 days, disallowing the tax deduction.

Buying and selling the same asset to create fake activity.

Prohibits claiming tax loss on security sold and repurchased within 30 days.

A friendly acquirer that rescues a company from a hostile takeover.

Process of dissolving and liquidating a company.

Tax taken out of wages or payments by the payer.

The difference between current assets and current liabilities.

Current assets divided by current liabilities.

Sales divided by working capital.

Expense or debt reduction recorded for financial/tax reasons.

Efficiency lost due to lack of competitive pressure.

Extended internal rate of return allowing irregular cash flows.

The income return on an investment, typically expressed as an annual percentage.

A graph that plots interest rates of bonds with equal credit quality but different maturities.

Central bank sets target rates for long-term bonds.

When short-term rates exceed long-term ones.

Earning crypto rewards by lending or staking digital assets.

Dividend income divided by original purchase price.

Difference in yields between two bonds.

Yield if a callable bond is redeemed early by issuer.

The total return expected if a bond is held until it matures.

The lowest possible yield on a callable bond.

A bond that pays no interest and can convert into equity.

A budgeting technique where every expense must be justified from scratch each period.

A bond sold at a discount that pays no interest but matures at full value.

A situation where one party’s gain is another’s loss.

A firm that earns just enough to pay interest but not reduce debt.