A person who is legally allowed to act on the behalf of another person and can represent their clients in negotiations. 

Annual percentage yield. A calculation of your estimated interest earnings by factoring in interest rate and compounding interest. 

A general expectation or trend that the price of securities will decline.

A bid refers to the maximum price that a buyer is willing to pay. An ask or offer refers to the minimum price at which a seller is willing to sell a security (see Security). A transaction can occur when the buyer and seller can agree on a price based on the buyer’s bid and seller’s ask.

A security that is loaned by an investor to a corporation that periodically provides fixed payments to the investor. The investor must be paid back in full by the maturity date.

A term used to describe financial assets, whether they be money or factors of production.

When an investment has a lower monetary value in the present than it did at the time of purchase.

A service fee charged by a broker or advisor in return for advice or representation in the buying or selling of a security.

A reward paid out to shareholders from a corporation’s earnings in the form of cash, stock, or other property.

The portion of a corporation’s profit that is dedicated to each share of stock.

Federal Deposit Insurance Corporation. Your deposit accounts are insured up to $250,000 per depositor, for each account ownership category

Contracts that compel buyers to buy or sellers to sell an asset at a predetermined date and price in the future.

The amount of money that a lender charges the borrower based on a percentage of the principal, or original amount of money loaned. Simple interest rates are calculated on the principal while compound interest is calculated on the principal in addition to the accumulated interest of previous periods.

Initial public offering. When a company first makes shares available for investors to purchase.

A pool of money from multiple investors that is used to invest in securities.

A term used to describe how fast an asset (see Asset) or security (see Security) is able to be sold on the market without compromising the asset or security’s price.

All the investments, whether they be publicly tradable securities (e.g. stocks) or non-publicly tradable securities (e.g. real estate), owned by a person or organization.

An index that follows the performance of 500 corporations that are traded on the New York Stock Exchange, Nasdaq, or the Cboe BZX Exchange.

Someone who owns stock(s) of a corporation. Shareholders are entitled to a proportion of the corporation’s earnings or assets.

The difference in price between a buyer’s bid and seller’s ask (see Bid and Ask). The smaller the spread, the more liquid (see Liquidity) the security is.

All the places where the buying, selling, and issuance of public shares takes place. The most important stock markets include the New York Stock Exchange (NYSE), Nasdaq, BATS, and Chicago Board Options Exchange (CBOE).

The number of securities traded within a certain time period, usually a day.

An investment that is so expensive to maintain that it makes it difficult to profit from the security.

AKA Excess return or abnormal rate of return. The term alpha is a measure of the ability of a particular strategy to beat the market.

A resource with economic value that is owned by an individual or a group that has the possibility to increase in value in the future.

A measure of the volatility of the stock compared to the risk of the overall market.

A well-established, well-recognized company that can turn a profit even in difficult economic conditions.

A general expectation or trend that the price of securities will rise.

When an investment has a higher monetary value in the present than it did at the time of purchase.

The maximum number of shares that a corporation is allowed to sell.

An investment strategy that encourages investing in many different kinds of assets. A diverse investment portfolio will typically yield higher returns and have lower risk.

An index that follows 30 public corporations on the New York Stock Exchange and the Nasdaq. Used as an indicator of the health of the market.

The cash amount that shareholders would be reimbursed if all assets were liquidated.

AKA “the Fed.” The central bank of the United States. The Fed is responsible for controlling interest rates and the supply of money in circulation.

A director or senior officer in a company or anyone who owns more than 10% of a company’s voting shares.

An expert in finance that makes buy, sell, and hold recommendations for securities.

AKA Market cap. The total dollar value of a company’s shares.

AKA the National Association of Securities Dealers Automated Quotations. A global electronic marketplace, or stock exchange, where people buy and sell securities. The Nasdaq is also used as a benchmark for the health of US technology stocks.

A mutual fund in which shares are sold without commission.

A formal document, filed with the Securities and Exchange Commission (SEC), that gives details about an investment offering to the public.

A tradeable asset that has monetary value. It exists in the form of stocks (see Stocks), bonds (see Bonds), and options (see Options).

Someone who takes calculated risks to make a large short-term gain.

A form of security (see Security) that provides partial ownership of a corporation. Also referred to as shares or equity.

A measure of how much the price of a security fluctuates in a given amount of time. Generally, the more volatile a security is, the riskier the security is.

A street in Manhattan's lower-west side. It houses the New York Stock Exchange (NYSE).

The income returned on an investment.