Glossary
The federal funds rate is the interest rate banks charge each other for overnight loans of excess reserves. Because it is determined daily by market activity, it is considered a sensitive indicator of interest rate direction.
Glossary
An exponential moving average (EMA) is a price-based technical indicator that emphasizes recent data to track price movement over time.
Glossary
Expense ratio (ER) measures the percentage of a fund’s assets used to cover management fees and operating costs, directly reducing the fund’s returns to investors.
Glossary
Ex-dividend describes a stock that no longer includes the right to receive the upcoming declared dividend, meaning new buyers are not entitled to that payment.
Glossary
Equities represent ownership interests in a corporation, typically in the form of common stock, giving shareholders a claim on the company’s assets and earnings.
Glossary
Earnings per Share (EPS) measures how much of a company’s profit is allocated to each outstanding share of common stock, providing a standardized way to assess profitability on a per-share basis.
Glossary
Earnings refer to a company’s net income after taxes, representing its bottom-line profit over a specific reporting period.
Glossary
Double witching refers to a market event when two different classes of stock options or futures contracts expire at the same time.
Glossary
Divergence occurs when an asset’s price moves in the opposite direction of a technical indicator or related data, suggesting that the current price trend may be weakening.
Glossary
Demand is the economic principle describing a consumer’s willingness and ability to purchase a good or service at a given price over a specific period of time.
Glossary
Debt/EBITDA is a financial ratio that measures a company’s total debt relative to its earnings before interest, taxes, depreciation, and amortization, indicating its ability to service debt.
Glossary
A dark pool is a private trading venue where securities are bought and sold without public disclosure until after execution, allowing large investors to trade with reduced market impact.