Glossary
Divergence
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
Glossary
Demand
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
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
Dark Pool
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.
Glossary
Common Stock
Common stock is a security that represents ownership in a corporation and provides shareholders with voting rights and a residual claim on company profits and assets after other obligations are met.
Glossary
Options Contracts (and Futures Contracts)
Options and futures contracts are financial agreements that derive their value from an underlying asset and are used to gain exposure to price movements without owning the asset directly.
Glossary
Certificate of Deposit (CD)
A Certificate of Deposit (CD) is a savings product that earns interest on a fixed sum of money for a set period, requiring funds to remain deposited until maturity to avoid penalties.
Glossary
Capitalization
Capitalization refers to the overall market value of a firm based on its outstanding shares and share price, and also to an accounting method where costs are added to an asset’s value and expensed over its useful life.
Glossary
Candlestick Chart
A candlestick chart is a type of price chart used in technical analysis that displays an asset’s open, high, low, and closing prices over a specific time period.
Glossary
Call Option
A call option is a financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price on or before a set expiration date.
Glossary
Bond
A bond is a fixed-income investment in which an investor lends money to a government or corporation in exchange for regular interest payments and repayment of principal at maturity.
Glossary
Book Value
Book value is a company’s net asset value shown on its balance sheet, calculated as total assets minus total liabilities. It reflects an accounting-based estimate of the company’s net worth.