- Rally: An upward movement of prices following a decline.
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- Return: The profit of an investment, expressed as a percentage of the total amount invested.
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- Risk: The quantifiable likelihood of loss or less-than-expected returns.
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- Risk Tolerance: The level of acceptance by an individual pursing profit with the inherit risk attached to the venture.
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- Risk Management: The process of analyzing exposure to risk and determining how best to handle such exposure.
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- Short: The act of borrowing a security from a broker and selling it, with the understanding that it must later be bought back and returned to the broker.
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- Short Selling: A technique used by investors who try to profit from the falling price of a stock. The trader's broker will borrow the shares from someone who owns them with the promise that the trader will return them later. The investor immediately sells the borrowed shares at the current market price.
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- Short Stock Liability: The total amount it would cost you to cover all your short positions at their current price.
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- Short-term: A time period of typically one year or less.
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- Stock-Limit Order: An order to buy or sell a stock when the price reaches a certain level.
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- Stock Split: An increase in the number of outstanding shares of an issue's stock made in proportionate equity of each shareholder's current shareholding of the stock.
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- Stop Loss Order: An order to sell a stock if a certain price is reached.
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- Stop Order: An order to sell at a price below the current market or an order to buy at a price above the current market.
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- Support and resistance: Used in technical analysis and are determined as important levels for a stock price. Support relates to a price level that the stock tried to breech/cross below, but ultimately stayed above. Resistance relates to a price level that the stock tried to breech/cross above, but was unable to. The bare minimum requirement to draw a support line or a resistance line is that the stock must spend a significant amount of time or volume at the price level.
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- Stop Order (Stop): An order to buy or sell an issue in the market if and when a specified price is reached.
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- Technical Analysis: A method of predicting future price movements based on historical price movements. Technical analysts believe that they can accurately predict the future price of a stock by studying its historical price performance. Support / Resistance levels combined with volume data of the stock form the basis for analysis.
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- Tick: A change in price, either up or down.
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- Ticker (Symbol): A unique system (or code) of letters used to identify a stock on an exchange.
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- Trading: The act of buying and selling stock (typically on a short-term basis) with the expectation of making a profit.
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- USD: United States Dollar.
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- Volatility: The relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. For example, a stock whose price moves up and down rapidly over short time periods is said to be highly volatile (i.e. has high volatility).
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- Volume: The number of shares traded for a market or a stock.
Yield: In general, yield is the return on any investment and expressed as a percentage of its current price. Yield returns are commonly found relating to dividends.
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