Trader's Glossary

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0x Protocol: The open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain.0x protocol acts as the key infrastructure layer for the burgeoning number of financial applications and instruments that are onboarding the blockchain technology stack and getting traded in digital
forms.

10-K: A comprehensive report is filed annually by a publicly-traded company about its financial performance and is required by the U.S. Securities and Exchange Commission (SEC). It has more details than the company annual reports.

10-Q Form: A comprehensive report of financial performance that must be submitted quarterly by all public companies to the Securities and Exchange Commission (SEC).

100% Equities Strategy: A strategy where all cash is invested solely in stocks.

12b -1 Fee: Fee that covers the cost of advertising the mutual funds.

130-30 Strategy (Long/Short Equity Strategy): A 130-30 designation strategy implies using a ratio of 130% of starting capital allocated to long positions and accomplishing this by taking in 30% of the starting capital from shorting stocks.

2000 Investor Limit: SEC mandate that establishes that a company that exceeds 2,000 individual investors, and with more than $10 million in combined assets, must file its financials with the commission.

51% Attack: Blockchain hypothetical attack by a group of miners controlling more than 50% of the network’s mining hash rate or computing power.

52-Week high/low: The highest and lowest price at which a security, such as a stock, has traded during the time period that equates to one year.

90/10 Strategy: Strategy invented by Warren Buffett. The method involves deploying 90% of one’s investment capital into stock-based index funds while allocating the remaining 10% of money toward lower-risk investments.

ADR – American Depositary Receipts: US financial markets where shares of foreign companies are traded. Individual units, called ADRs, represent one or more shares of a foreign stock.

APR – Annual percentage Rate: Interest rate for a whole year.

ASIC Mining: ASIC systems are specifically engineered primarily for mining cryptocurrencies, producing more cryptocurrency units compared to GPUs. Their downside is that they are costly and tend to
become obsolete quickly.

Abnormal Returns: Abnormal returns, defined as returns that deviate significantly from expected returns based on market benchmarks or historical performance.

Absolute Return: The amount of profit or loss an asset has produced during a designated time frame.

Accelerated Depreciation: A method of depreciation whereby depreciation expense is higher during the early years of an asset’s life.

Accepting Risk: A conscious decision by a business or individual to bear the potential consequences of a risk, as the cost of mitigating it outweighs the potential loss.

Account Balance: Checking account balance, savings account balance, investment portfolio value.

Account Deficit: Negative balance in the account for trade o payments

Account Fee: A fee charged to investors for account maintenance funds. In some cases, clients with accounts below a certain amount may be charged an account maintenance fee.

Account Statement: Periodic compilation of the management of an account with start date and end date.

Accountability: If an individual or department faces potential repercussions related to performance or their actions.

Accredited Investor: A company that meets the regulatory requirements for offering securities, either by registration with a financial authority such as the SEC.

Accredited Investor: This term is used for investors who are deemed to have sufficient knowledge and experience to understand the risks of investing in unregistered securities.

Accretion: Progressive and incremental growth of assets and profits as a result of business expansion, internal development of a company or a merger or takeover transaction.

Accretion Discount: Discounted instruments get more valuable as time goes by and their payback date approaches.

Accrued Investment: Interest income earned on a security that has not yet been transferred to the investor.

Accumulated Depreciation: The depreciation of an asset accumulated up to a certain point in its effective life.

Accumulation /DistributionIndicator (A/D): An indicator that uses price and volume to determine whether a stock is accumulating or distributing.

Acid-Test-Ratio (Quick Ratio): A firm’s balance sheet can reveal its ability to meet short-term obligations using available short-term assets.

Acquisition: A scenario where one corporation strategically acquires a majority of another’s outstanding shares, effectively assuming ownership and control over the acquired entity.

Acquisition Accounting: Set of prescribed procedures for recognizing and reporting tangible and intangible assets, obligations, non-controlling ownership, and excess purchase price resulting from a business
acquisition on the consolidated balance sheet of the buyer.

Active Management: A financial expert, or team of experts, who oversees a client’s investment portfolio. They monitor performance and make strategic decisions about buying, holding, or selling assets to optimize returns.

Advanced Free Fraud: Require investors to pay a fee in advance in order to carry out a transaction.

Affiliate Networks: This consortium of companies provides compatible and complementary platforms for Forex trading and betting.

After-hours Trading (Extended-hours trading): Operations that take place after regular market trading hours.

All-Or-None Order (AON): An order to acquire or assign a share to be executed in full, or not to be executed at any time.

Alternative Mutual Fund: Mutual funds venturing outside traditional markets and utilizing complex trading strategies for potential above-average gains.

Alternative Trading Systems (ATS): Trading platforms approved by the SEC that bring buyers and sellers of securities together to make deals.

American Depositary Receipts (ADR): Owning an ADR grants you the legal right to exchange it for the underlying foreign shares, usually held by a custodian bank. This means you indirectly own the same rights and benefits as a direct
shareholder of the foreign company.

Angel Investor: This is the most commonly used term for someone who invests in early-stage companies in exchange for equity.

Annual Percentage Rate (APR): Annual interest accrued on a sum charged to debtors or paid to investors.

Annual Return: Performance of an investment measured over a one-year period.

App Coins: They constitute future access to a company’s products or services. They represent virtual coupons for future company developments.

Ask: The lowest amount that a seller is ready to sell stocks or other assets for sale.

Asset: Tangible asset that has economic value and can be exchanged.

Asset Allocation: Asset allocation means spreading your investments across different classes, such as stocks, bonds and cash.

Asset Classes: Financial assets are grouped by common characteristics, forming categories called asset classes. The most common are stocks, bonds and cash.

Asset Currency: Currency with a higher interest rate compared to the counter-currency in a carry trade

Asset Turnover Ratio: The asset turnover ratio measures the value of a company’s sales or revenue relative to the value of its assets. This ratio is used as an indicator of efficiency in asset utilization, showing how
effectively a company converts its investments into sales.

Asset Under Management (AUM): Total value of investments managed by a person or entity for clients’ accounts.

Aussie: This entry refers to the Australian Dollar/US Dollar (AUD/USD) foreign exchange pairing, which is also informally known as “Aussie.”

Average True Range: The Average True Range (ATR) is a widely employed technical analysis tool for gauging market volatility. It’s calculated as the 14-day simple moving average of individual true range values,
which themselves capture the largest price fluctuation over a given period.

Bankruptcy of a Public Company: When a company’s liabilities become insurmountable, bankruptcy can offer a legal framework for debt resolution and potential reorganization

Basis Point: In finance, “basis points” (pips) are tiny units for measuring changes in metrics like interest rates and indices. Just 0.01% of a percentage point, they allow for fine-grained analysis.

Bear Market: A sustained period of market decline, characterized by falling stock prices and widespread pessimism, generally marked by a 20% or greater drop in a broad market index over two months or more.

Beat to Spread: This strategy involves buying and selling the same number of put options on the same asset, with identical expiration dates but different strike prices. The trader expects a significant price drop and aims to profit from it while minimizing initial costs.

Beneficial Owner: A legal entity (bank or broker) acts as the record holder, while the individual or entity behind them is the actual beneficiary of the stock ownership.

Beneficiary: Beneficiary named in a financial account, trust, or will.

Beta Stocks: Stock beta measures how a particular stock’s price “dances” compared to the market. A beta between 0 and 1 means it dances to a different tune, often moving in the opposite direction. A beta of 1 means it’s a mirror image of the market, moving up and down in sync.

Bid Price: The prevailing bid price for a specific volume of shares in a stock.

Bid-Ask Spread: Difference between the asking and bidding prices.

Binary Options: A binary option is a financial contract where the payoff is determined by a yes/no proposition, such as whether an asset price will reach or exceed a certain level by a specific time. Unlike traditional options, it doesn’t confer the right to buy or sell the underlying asset. Instead, the holder receives a fixed payout if the proposition is correct or loses their investment if it’s not.

Bitcoin: Cryptocurrencies are digital assets used like money, but unlike traditional currencies, they aren’t issued by a central bank and operate on a decentralized network, allowing peer-to-peer transactions without intermediaries.

BlockChain: Blockchain technology and trading are attracting increasing interest among young entrepreneurs looking for new investment avenues. While most commonly associated with cryptocurrencies, blockchain’s applications are expanding into various economic sectors thanks to its ability to securely store and track transactions through a distributed ledger system.

Blue Chip Stock Stability: Blue chips tend to be strong, as they have an established market presence in the
sector in which they operate.

Blue Chip Stocks: Invest in established brands with proven track records of growth and reliable
dividend payouts.

Blue Sky Laws: Securities fraud prevention laws for investor protection.

Bond: Bonds are essentially loan agreements, issued by borrowers like corporations or governments to raise funds from investors for a predetermined period. Investors earn interest for their financial contribution and recoup their initial investment upon the bond’s maturity date.

Bond Benefits: Government and municipal bonds provide a means to fund essential public goods
and services, while junk bonds offer higher potential returns but with increased risk.

Bond Evaluation: Bond risk varies depending on the creditworthiness of the issuer, as reflected in their bond rating. Bonds with higher ratings, issued by more stable entities, are considered safer but offer lower returns. Conversely, bonds with lower ratings come with the potential for higher returns as compensation for the increased risk of issuer default.

Bond Funds: Mutual fund investing in government, corporate, or municipal bonds

Bond Risk: Bonds may be hailed as low-key heroes of stability, but even they face challenges. Be mindful of potential pitfalls like issuer instability (credit risk), rising prices (inflation risk), trouble selling quickly (liquidity risk), and future interest shifts (reinvestment risk).

Bond Swap: The investor trades one bond for another, using the sale proceeds to acquire the new bond. This clarifies that it’s a deliberate exchange and not just a random sale.

Bonus Credit: The extra amount that an insurer agrees to add to the value of a contract, usually a specified percentage of the payments made during a specified time. The percentage is usually no more than 5%.

Breakpoint Discounts: Mutual funds with front-end loads often offer reduced fees for larger investments.

Broker: A neutral third party who connects buyers and sellers and assists in closing deals, frequently earning a fee for their services.

Brokerage Account Number: The special code that identifies your individual account at your brokerage firm.

Bull Market: This is the most common term used to describe a sustained period of rising stock prices. A bull market is typically characterized by strong economic growth, low interest rates, and positive investor sentiment.

Business Development Companies: Closed-end investment fund form. Advisable for smaller investors wishing to make
investments in small and medium-sized private companies.

Buy: Taking a long or short position on a digital asset’s price

Buying Long: Investing in stocks or assets for potential capital appreciation.

Buying Power: Available investment capital.

Buying Short: Purchasing shares or other assets with the expectation of a quick price appreciation
to sell them at a profit within a relatively short time frame.

CAD: The Canadian dollar, the official currency of Canada, is occasionally referred to as the “Loonie” or “Funds.”

CD Call Period: The term used to describe the timeframe in which the bank is unable to redeem the Certificate of Deposit (usually occurring within the initial year).

CPU Mining: The CPU method was primarily utilized in the early days of mining. However, in contemporary times, it is scarcely employed, as miners perceive it to be excessively slow and impractical.

Call Options: A call option gives the holder the right (but not the obligation) to buy an asset at
a set price by a certain date. This flexibility allows traders to employ various
strategies for hedging, generating income, or speculating on the market.

Callability: Possibility for certain bonds to be redeemed before reaching their maturity date.

Callable Bonds: Bonds that the issuer has the option to redeem or settle before the scheduled
maturity date of the bond.

Callable CDs: These CDs offer the issuing bank the flexibility to terminate the agreement after a specific period, while CD holders are bound to the full term.

Canadian Dollar: Official currency from Canada

Capital Gain: Profit from selling an investment for more than its purchase price.

Carry Trade: Investors employ a trading strategy in which they leverage borrowed funds at lower interest rates to invest in an asset offering a higher return.

Cash: Tangible financial instruments used for purchasing goods and services.

Cash Amount: A full-payment brokerage account requires investors to pay the entire amount for the securities they purchase. In this type of account, investors are prohibited from borrowing funds from their broker-dealer to cover transactions.

Central Banks: The central bank is a unique financial institution empowered to create a nation’s legal tender. Responsible for managing inflation and economic stability, it sets monetary policy and supervises commercial banks to ensure a healthy financial system.

Churning: Unethical conduct occurs when a broker excessively buys and sells securities in a customer’s account, disregarding the customer’s investment objectives. The primary motivation behind such actions is to generate commissions that primarily benefit the broker.

Classes: The same fund often issues several types of shares, usually referred to as Class A shares, Class B shares, and so on. These classes often have different performance results.

Although each fund class comprises identical investments and shares the same investment objectives and policies, they differ in terms of fees and expenses.

Clean Shares: Shares of the fund are offered without any upfront fees, deferred sales charges, or other asset-based fees related to sales or distribution.

Clearing Firm: A clearinghouse is a financial entity established to streamline the process of exchanging payments, securities, or derivatives transactions.

Close Position: A closed position refers to a trade that has been concluded and is no longer in effect, having been terminated by the trader. Closing a position involves executing a trade in the opposite direction from the one taken when initially opening the position.

Closed-end Investment Fund: An investment company of fundamental nature, it allocates the funds acquired through its initial public offering into various assets such as stocks, bonds, money market instruments, and/or other securities.

Closing Price: The final price at which an asset is exchanged during a
standard trading session.

Commissions: Commission is the monetary or financial percentage charged for executing trades with the assistance of a broker, expert trader, or financial professional.

Committee on Uniform Securities Identification Procedures (CUSIP): It is the numerical identifier of most financial instruments.

Commodity Futures Trading Commission (CFTC): Organization responsible for the registration and assessment of both companies and individuals.

Common Stocks: When you buy common stock, you become a partial owner of the company. Each share represents one vote, allowing you to have your voice heard on important decisions at shareholder meetings.

Complaints: These documents serve as a legal means for traders or individuals to formally report or object to brokers, brokerage firms, investment advisers, transfer agents, mutual funds, and other participants in the financial markets.

Component of a Market Index: The major indexes, such as the S&P 500, the Dow Jones and the NASDAQ-100, are naturally composed of large companies.

Compound Interest: Interest calculated on both the initial principal and accrued interest.

Compounding Method: Strongly associated with APY is the financial institution’s compounding method for savings accounts. While interest payments are most typically paid quarterly, some entities
pay compounding interest on a monthly, semi-annual or annual basis.

Confirmation: A written agreement executed by parties involved in a transaction, outlining the terms of the exchange.

Consolidated Tape: A fast electronic system that provides real-time information on the latest prices and trading volumes of publicly traded securities.

Contract Size: The contract size refers to the specified quantity of a
financial market, constituting the underlying amount in a futures or options contract, or in spot forex trading. The specific values can differ across various markets and assets.

Contract for Difference or CFDs: CFDs are derivative instruments that allow traders to speculate on the price movements of various assets, including stocks, currencies, and commodities, without directly owning them. By entering a CFD contract, a trader agrees to exchange the difference between the opening and closing price of the underlying asset with the broker. Profits or losses are determined by the direction and magnitude of the price movement.

Controlled Risk: Managed risk involves limiting the risk associated with a trade to a predetermined level, usually achieved through the implementation of a guaranteed stop-loss order. This approach allows you to establish the highest potential loss for a trade, providing you with complete control over your
risk exposure.

Conversion: Certain funds provide investors with the option to automatically transition from one fund class to another, usually one with reduced annual expenses, following a predetermined time frame.

Convertible Bonds: A convertible bond is a type of bond that has the option to be converted into a specific quantity of common stock issued by the company or exchanged for an equivalent cash value.

Convertible Securities: It’s a type of security that has the capability to transform into an alternative form of security.

Copy Trading: It is the practice of copying the trading decisions of another investor.

Corporate Action: A corporate action is an event initiated by the board of directors of a company that significantly affects the rights or value of its issued securities, such as shares or debentures.

Corporate Bonds: These bonds are issued by businesses, including corporations and LLCs. While corporate bonds provide attractive yields, they are not preferred under the current tax regulations.

Coupon: A characteristic of a bond indicating the sum of interest owed and the scheduled date for the payment.

Coupon Payment: Amount of interest paid to an investor in dollars.

Coupon Rate: The return a bond pays to its owner in interest.

Cryptocurrency: Crypto Digital money like Bitcoin uses special codes to make it super hard to fake or spend twice. It’s like a giant, shared spreadsheet that keeps track of who owns what, without needing banks or governments involved.

Currency: Currency refers to the monetary unit backed by the specific legal tender system of a given country or economic region in paper or digital form. It serves as a medium of exchange for the transaction of goods and services.

Currency Pair: It is the relationship between two currencies such as the dollar and the euro.

Currency Risk: It is the possibility of risk of loss of a currency when trading in the market.

Currency Symbol: It is a symbolic representation of a currency.

Current Yield: Annual coupon payment divided by the bond’s current market price, expressed as a percentage.

Cyclical Stocks: A cyclical stock is influenced by the broader economic trends, mirroring the market’s fluctuations as it experiences both upward and downward movements.

DRIP: Automated Dividend Reinvestment facilitates the automatic reinvestment of
dividend payments into the respective stocks for eligible accounts. Once activated,
any dividend-eligible stocks receiving a dividend will be reinvested directly back
into those specific stocks.

Day Order: Day orders in trading are valid only for the specific trading day. If these orders fail
to execute within regular trading hours, they expire and do not automatically roll
over to the next day.

Day Trade: Buying and selling, or selling and buying, the identical asset within a margin
account on the same day.

Day Trading: Buying and selling of assets by traders throughout the day.

Deal: A transaction in the foreign exchange market is commonly referred to as a deal or
trade. The predominant type of deal is known as a spot contract, involving the
immediate purchase or sale of a foreign currency at the prevailing exchange rate.
Additional types of deals encompass forward contracts, window forwards, limit
orders, stop loss orders, and fx swaps.

Debt: Debt constitutes a commitment wherein one party, known as the debtor, is
obligated to remit money or an agreed-upon value to another party, referred to as
the creditor. It involves a postponed payment or a sequence of payments,
distinguishing it from an instantaneous transaction.

Default: The inability of an issuer to make timely payments of principal or interest, or to
meet other obligations, including reporting obligations.

Defensive Stock: When the going gets tough, defensive stocks stay the same (more or less). That’s
because they sell consumer staples, so theoretically demand will likely not go
down just because the economy may be floundering. Such companies provide
reliable dividends and stable earnings.

Deferred Load: During challenging times, defensive stocks tend to remain relatively stable. This is
attributed to their focus on consumer staples, where the demand is theoretically
less affected by economic downturns. These companies offer consistent dividends
and steady earnings, making them reliable investments.

Deferred Sales Charge (Back-End Load): A sales charge investors pay when they redeem (sell) mutual fund shares. Funds
generally use these to compensate brokers.

Deficit: A deficit arises when expenditures exceed income. This concept is applicable to
various economic aspects such as imports and exports, costs and earnings, as well
as liabilities and assets. Governments may deliberately incur a deficit to aid in
lifting countries out of economic downturns or to foster future economic
expansion.

Delisting: Delisting comes in two flavors: voluntary, when a company wants to go private,
and involuntary, when it fails to meet exchange requirements.

Delta: The efficiency of a derivative hedge, also referred to as the “hedge ratio.”

Deposit: The act of depositing your money in an account to make operations.

Deposit Rates: The deposit rate refers to the interest rate offered by financial institutions for cash
deposits, including those in checking, savings, and Money Market accounts. This
rate is provided in return for the institution’s utilization of the deposited cash.

Derivatives: Financial instruments that derive their performance, at least partially, from the
performance of an underlying asset, security, or index.

Disclosure: Details regarding a company’s financial health and its publicly disclosed business
particulars. Investors can leverage this data to make well-informed decisions
regarding their investments in the company’s securities.

Distribution Fees: Charges deducted from the assets of the fund to cover expenses related to the
marketing and sale of fund shares.

Diversification: It involves allocating funds among various assets. Traders use this technique to
reduce the risk of putting all their funds in risk.

Dividend: Shareholders are paid a portion of a company’s profits.

Dollar-Cost Averaging: The trader spreads out their investments by buying equal amounts of an asset at
regular intervals.

EPS: Earnings per share.

EST: EST is an abbreviation for Eastern Standard Time.

ETF: An exchange-traded fund is several investments sold as a package. The ETFs are sold
throughout the day just like a stock, and they’re sold for a share price.

Earnings per Share: The net profit of a publicly traded company is distributed among its common shares.

End Of the Day Order or EOD: An EOD order, or day order, tells your broker to buy or sell a security by the end of the
trading day. It can open or close a position, but only lasts until the market closes.

Estate Tax: The federal estate tax only applies to inheritance greater than $11.18 million for
individuals and $22.36 million for married couples.

Ethereum: One of the most popular cryptocurrencies in the market.

Euro: The euro (€) is the shared currency of 19 European Union countries, replacing their
national currencies.

European Season: The forex European session operates from 2:30 am to 10:30 pm EST, aligning with the
business hours of the City of London.

Exchange Fee: An imposed charge by certain funds on shareholders who opt to transfer their holdings
to another fund within the same fund group.

Exchange Traded Fund: Investors can utilize SEC-registered investment companies as a means to collectively
contribute their funds to a portfolio that engages in the investment of stocks, bonds, or
alternative assets. In return, investors gain a stake or interest in the overall fund.

Executer: The individual designated in the will or appointed by a probate court to carry out the
wishes of the deceased is known as the personal representative.

Executing an order: The act of initiating a transaction to either purchase or sell financial assets within the
market.

Exercising: Utilizing the Options market provides the opportunity to exercise the right to buy or
sell the underlying security

Expense Ratio: Investors pay an annual fee, expressed as a percentage of the fund’s average assets, to
cover its operating expenses, including management and distribution charges. This fee,
known as the expense ratio, affects your investment returns.

Expiration Date: The expiration date on a derivative contract, like an option or a futures contract, marks
the final day you can exercise your rights or fulfill your obligations under the
agreement. By this date, traders must choose whether to buy or sell the underlying
asset, close their position, or allow the contract to expire worthless.

Extended Hours Trading: Extended-hours trading refers to stock trading activities conducted before or after the
standard trading hours of a stock exchange, encompassing both pre-market and afterhours trading. After-hours trading specifically involves the buying and selling of
securities when the primary markets are not operational.

FAANG Stock: FAANG is a term that stands for the stocks of the top five leading and highperforming technology companies in the United States. These companies include
Facebook, Amazon, Apple, Netflix, and Alphabet (previously recognized as
Google).

FIFO: FIFO, an acronym for First In, First Out, refers to a method of asset management
and valuation. This approach involves selling, utilizing, or disposing of assets in the
order they were produced or acquired, prioritizing those that came in first.

Face Value: This represents the bond’s initial worth, commonly known as its “par” value. The
typical face value for a bond is $1,000

Federal Reserve: The central banking system of the United States, commonly known as the Federal
Reserve or the Fed, is officially called the Federal Reserve System.

Fiat currency: Fiat currency is officially authorized legal tender, deriving its value from
governmental declaration. Central banks oversee its management, granting them
significant influence over the economy as they determine the quantity of money in
circulation. Unlike commodity-backed currency, paper currency lacks intrinsic
value. Examples of fiat currencies include the U.S. dollar and the Euro.

Fiduciary: In their role as fiduciaries, investment advisers must prioritize the best interests of
their clients and refrain from prioritizing their own interests over those of their
clients.

Fill-Or-Kill Order: A market order is a request to purchase or sell an asset that requires immediate
execution of the entire order; otherwise, it will be automatically canceled.

Financial Analyst: Financial analysts translate data into actionable insights, empowering clients to
make sound investment and business decisions.

Financial Contract: A financial contract constitutes a legally binding instrument between a minimum of
two parties, explicitly outlining the respective rights and obligations arising from the
agreement.

Financial Industry Regulatory Authority (FINRA): Organization dedicated to preserving the interests of investors and ensuring the
integrity of the market in a way that fosters vibrant and dynamic capital markets.

Financial Literacy: Financial literacy involves the capability to comprehend and proficiently utilize a
range of financial skills, encompassing personal financial management, budgeting,
and investing. Acquiring financial literacy empowers individuals to attain selfsufficiency, leading to the achievement of financial stability.

Financial Products: Numerous financial instruments exist, encompassing currencies, derivatives, bonds,
and stocks.

Fixed-Rate Bond: A bond characterized by a fixed interest rate over an extended duration.

Foreign Currency Exchange: The price reflects the expense associated with acquiring the currency of one country
through the use of the currency of another country.

Foreign Exchange Market: Currency trading markets

Foreign Regulators: The regulatory body responsible for supervising securities markets in various
regions.

Forex Broker: Forex brokers offer currency traders a trading platform to execute transactions
involving the buying and selling of foreign currencies. While they manage only a
fraction of the total foreign exchange market volume, their primary objective is to
secure optimal outcomes for their clients. Acting as intermediaries between banks,
Forex brokers serve as financial facilitators, earning a commission for their services.

Forex Trading: Forex trading involves buying and selling currencies on the foreign exchange
market to speculate on price movements and potentially make a profit.

Fractional Shares: A fractional share refers to a portion of a single stock share.

Freeriding: Engaging in the purchase and sale of an asset by a trader before fulfilling the
payment is a prohibited activity according to the regulations of the Federal Reserve
Board.

Front-end Load: Initial sales fee that investors incur when purchasing shares of a mutual fund.

Full-Service Broker: A comprehensive brokerage service is akin to collaborating with a traditional
stockbroker, offering a more personalized and premium experience compared to
basic online brokerage platforms.

Fund: A fund serves as an investment instrument allowing individuals to collectively
contribute their funds for investment in various securities such as stocks, bonds,
currencies, real estate, or commodities.

These funds can have diverse goals, aiming to provide investors with either a
consistent income stream or capital appreciation.

Fundamental Analysis: Fundamental analysis entails the utilization of relevant economic and financial
factors to assess the value of a security. This process involves examining both macro
and microeconomic elements, encompassing the overall economic well-being of an
industry or country, as well as specific details related to a particular company. These specific details may include management decisions, revenue, and profit.

Fundamental analysis is applicable to various types of securities, such as indices,
individual stocks, forex, and commodities.

Futures Contract: A contract to purchase or sell a predetermined amount of a commodity or financial
instrument at a specified price on a designated future date.

Futures Market: Trading markets for futures contracts on commodities like gold, oil, or wheat, as
well as financial futures.

Futures Value: The worth of a resource at a designated future date.

GFV (Good Faith Violation): If a trader purchases a stock using settled funds today, they have the option to sell the
stock the next day without incurring a violation. Subsequently, the funds generated from
the sale can be promptly reinvested in additional stocks. However, if the trader opts to
sell the stock before the completion of the 2-day settlement period, the proceeds would
be categorized as unsettled funds, leading to a cash account violation. It’s important to
note that transactions conducted in a cash account necessitate a 2-business day
settlement period before the funds become available for further buying and selling
activities.

GMT: Greenwich Mean Time, abbreviated as GMT, was established in 1884 with its reference
point in the village of Greenwich, London, England. This selection was made due to its
significant maritime connection, marking it as the universal reference for time
measurement on Earth.

GPU Mining: The GPU approach optimizes computational capabilities by consolidating a group of
GPUs within a single mining rig.

GTC (Good-Till-Canceled): A purchase or sale request for a stock that remains active until either executed or
manually revoked. Brokerage companies usually impose restrictions on the duration for
which an investor can keep a GTC (Good ’til Canceled) order in effect.

Gain: The stock market functions as a marketplace where buying and selling of stocks take
place. Each stock purchase involves a seller and a buyer, and conversely, each stock
sale involves a buyer and a seller. When a trader buys a stock at a certain price and its
value increases (the share is now worth more than the purchase price), this is referred to
as unrealized gains.

Good For Day: Day-only order

Government Bond: These bonds are issued by national governments and are supported by the complete
trust and creditworthiness of the issuing country. The issuing country has the authority
to undertake any measures required to fulfill the bond payment obligations.

Grantor: This individual established the trust initially.

Gross Pay: The gross pay represents the total compensation that your employees earn prior to any
deductions or taxes being subtracted.

Growth History: Reliable and steadfast, blue-chip companies exhibit consistent growth over time,
accompanied by positive prognostications. While they may not boast the excitement
and rapid ascent seen in burgeoning startups, this is simply because they hold the
position of the established giants in the business world.

Growth Investing: A growth-focused investment strategy prioritizes the pursuit of capital appreciation.
Investors following this approach seek out companies demonstrating indicators of
higher-than-average growth in terms of both revenues and profits, even when the stock
price may seem relatively expensive.

Guaranteed Order: A trading order designed to shield a trader from market gaps, ensuring the execution of
the order at the specified asking price.

Guaranteed Stop: A Guaranteed Stop-Loss Order (GSLO) is an order type designed to secure the closure
of your position at a specified price, irrespective of market fluctuations, slippage, or
gaps. While attaching guaranteed stops is typically cost-free, your brokerage may
impose a premium when the order is executed. This premium is justified by the
additional risks assumed by your broker on your behalf.

Hash: Each block in the blockchain possesses a distinctive identifier—a 64-digit number serving
as a condensed digital signature for a specific data segment. These unique identifiers are
generated to ensure the security of data transmissions over a public network.

Hedge / Hedging: A hedge refers to an investment undertaken to mitigate the potential risk arising from
fluctuations in the price of an asset or multiple assets.

Hedge Ratio: The efficacy of a derivative hedge, also referred to as the “delta.”

Heir: In the absence of a valid will, the individual inheriting the assets is considered the heir.
Although the term “heir” is commonly used to describe the person receiving assets through
a will, the more accurate term in such a scenario is “beneficiary.”

Hit the bid: The expression ‘hit the bid’ pertains to the bid-ask spread, which is the price disparity
between the maximum amount a buyer is willing to pay for a security and the minimum
amount the holder of that security is willing to accept. When a trader is prepared to
promptly sell at the specified bid price, they are said to ‘hit the bid.’

Hybrid Stocks: Hybrid stocks earn their designation by blending features from two or more financial
instruments. Typically, they exhibit attributes of both debt and equity. For instance, a hybrid
stock may function as a bond, serving as a loan from which you derive profits as it gets
repaid, while also being subject to the price fluctuations associated with stocks.

IPO: A company goes public by selling its shares for the first time in an IPO.

Immediate-orCancel Order: Purchase or sale instruction for a stock that requires immediate execution.

Impersonators: Impersonators may deceitfully assert connections with the SEC (or another federal
government agency) with the intent of illicitly obtaining personal information or a
trader’s funds.

Impulse Spending: Impulse purchasing, also known as impulse buying, is an unplanned choice to
purchase a product or service, typically made right before the actual transaction.
Individuals who frequently engage in such spontaneous purchases are commonly
referred to as impulse purchasers or impulse buyers.

In the Money: “In-the-money” describes an option contract that, if executed at the present moment,
would hold a value exceeding $0. A call option is considered in the money when its
strike price is lower than the current market price of the underlying asset.

Income Funds: Investment firms specializing in bonds or other debt securities primarily constitute
this type of investment company.

Income Investing: A strategy known as income investing, also referred to as “fixed income,” entails the
acquisition of securities that typically provide regular returns. This category
includes bonds, dividend-paying stocks, exchange-traded funds (ETFs), mutual
funds, and real estate investment trusts (REITs).

Index Components: The components of an index consist of the individual corporations that are listed on
a stock index. As an example, Apple is a constituent of the Nasdaq stock index.

Index Fund: A type of mutual fund designed with the goal of attaining a return that closely
mirrors the performance of a specific market index.

Individual Mining: This process is carried out by an individual who is registered as a miner. Each
independent user receives a mathematical problem to solve, and the first one to
successfully solve it earns a profit or reward.

Inflation: Inflation refers to the erosion of the purchasing power of a particular currency over
time. It is determined by assessing the expenses associated with a collection of
commonly consumed goods and services within an economy.

Inheritance Tax: Traders are required to pay inheritance tax once they receive assets. While there is
no federal inheritance tax, six states impose taxes on inheritances. It’s important to
note that the majority of beneficiaries, such as children, grandchildren, husbands,
and wives, are typically exempt from paying inheritance taxes.

Initial Deposit: Minimum deposit required to trade on the market

Initial Margin Requirement: The initial margin is the upfront cash needed to start trading, expressed as a
percentage of your desired position size.

Initial Public Offering (IPO): The scenario in which a company initially offers its shares to the general public.

Instant Settlement: The processing or settlement of transfers to and from a bank account may require 3-
5 business days before the funds become available for stock investment. However,
there’s a positive aspect: once your Public account holds a minimum of $100 in
settled funds, subsequent deposits will be immediately accessible for investment, up
to the total amount of settled funds in your account (with a maximum limit of
$1,000).

Interest: The cost associated with obtaining a loan, presented as a percentage rate over a
specific duration.

Interest Payment: The payment amount is calculated based on the interest rate associated with an
account. For borrowers, the interest payment signifies the fee imposed for
borrowing funds.

Interest Rate: The interest rate represents the interest accrued per time period, expressed as a
percentage of the lent, deposited, or borrowed amount. The overall interest on a lent
or borrowed sum is influenced by factors such as the principal amount, the interest
rate, the frequency of compounding, and the duration of the lending, depositing, or
borrowing period.

Interval Fund: An interval fund refers to an investment company that regularly extends the option
to buy back its shares from its investors.

Invest: Participating in any endeavor where financial resources are jeopardized with the
aim of generating a financial gain.

Investment Advisor: Individual or entity involved in the business of offering investment advice to third
parties.

Investment Advisor Public Disclosure: The database holds registration documents submitted electronically by investment
adviser firms.

Investment Company: A financial institution that pools money from investors and uses it to buy and sell
various securities. There are three main types: mutual funds, closed-end funds, and
unit investment trusts.

Investment Objectives: Financial objectives or accomplishments in the short, medium, and long run vary
based on investment goals.

Issuer: Organization responsible for repaying the principal amount and interest associated
with a bond.

JMD: Abbreviation of Jamaican dollar

Kiwi: Informal way to refer to New Zealand dollar

Knock in options: A knock-in option is a specific type of options contract that remains dormant until a pre-established price level is attained. Until the designated price is reached, the knock-in
options contract remains inactive.

Knock out options: An alternative that voids a previously purchased option when the underlying product
reaches a specified trading threshold. Once the knock-out level is attained, the original
option becomes invalid, and any associated hedging positions may need to be reversed.

Large Cap: A phrase employed to characterize the dimensions and market worth, or market
capitalization, of a company.

Large Market Capitalization: A market capitalization, or market cap, serves as a measure for assessing the
magnitude and worth of a company. Blue-chip stocks typically fall into the category
of large-cap stocks, indicating a market valuation surpassing $10 billion.

Last dealing day: The final day on which you can engage in trading for a specific product.

Last dealing time: The final opportunity to engage in trading for a specific product.

Last trading days: The final trading day occurs one day before the derivatives contract reaches its
expiration date. It represents the ultimate opportunity to engage in trading activities or
finalize your position before the commodity is either delivered or settled in cash on
the subsequent day. After the conclusion of the last trading day, the derivative
becomes ineligible for further trading, initiating the commencement of the settlement
process.

Leverage: Leverage serves as a trading instrument, allowing you to command a substantial
capital amount without the need to cover the entire value of your position in advance.

Leverage Loan: Loan provided to individuals with existing high levels of debt and/or a diminished
credit rating.

Liability: Financial commitments arising from debts, leases, supplier expenses, wages,
environmental remediation, and taxes.

Limit Order: A limit order functions as a directive to your trading provider or broker, instructing
them to carry out a trade at a price more advantageous than the present market rate.
This type of order can be employed for both entering and exiting a position.

Liquidity: Describes the speed or ease with which a security or asset can be traded on the
secondary market.

Listing Standards: Criteria that a company needs to meet before its stocks can commence trading in the
market.

Load: The total contribution made by investors when they purchase units in an investment
fund.

Lock-Up Period: Lockup agreements prevent individuals associated with the company, such as
employees, their close associates, family members, and venture capitalists, from
divesting their shares within a specified timeframe.

Long Positions: A long position refers to a trading strategy that generates profit when the market’s
underlying asset experiences an upward price movement. Initiating a long position
involves purchasing a financial asset. Should the asset appreciate in value, you have
the opportunity to sell it at a profit. Conversely, if the asset depreciates, you might
need to sell it at a loss.

Lot Size: It pertains to the particular quantity of currency or currency units that traders have the
ability to purchase and sell.

Macro trader: A macro trader is someone who seeks to gain profits through the analysis of economic
indicators such as GDP growth, inflation, and unemployment. Their decision-making
process is grounded in the broader economic and political perspectives of different
nations, as well as the principles of macroeconomics.

Margin: Utilizing borrowed funds from your broker to purchase stocks and leveraging your
investment as security. Typically, investors employ margin to enhance their buying
capacity, allowing them to acquire a greater amount of stock without covering the
entire cost upfront.

Margin Account: A brokerage account type where the broker-dealer provides the investor with a loan,
utilizing the account as collateral, for the acquisition of securities.

Margin Call: In a scenario where a trader initiates a margin buy and the value of the assets
decreases, the brokerage firm mandates an immediate deposit of cash or securities into
the trader’s account. Alternatively, the trader may need to sell securities from the
account to address any deficit, with no prior notification from the brokerage firm.

Margin Maintenance: Once you purchase stocks on margin, it is mandatory according to FINRA regulations
to maintain a minimum level of equity in your margin account. The equity in your
account is calculated as the difference between the value of your securities and the
amount you owe to your brokerage firm.

Market Capitalization: Market capitalization is calculated by multiplying the prevailing public market price of
a single share of a corporation by the total number of outstanding shares, determining
the overall value of the company.

Market Hours: The regular trading session for stocks listed on major exchanges and select other
markets runs from 9:30 AM Eastern Time to 4:00 PM Eastern Time.

Market Index: Assessing the performance of a designated collection of assets intended to mirror a
specific market or economic sector

Market Indices: The overall success of a designated set of stocks that mirror a specific market or
economic sector.

Market Manipulation: When an individual intentionally manipulates the supply or demand of an asset or
security.

Market Order: Market buy/sell order

Markups: The variance between the actual market price of an asset and the amount a trader
spends to obtain it through a broker-dealer.

Maturity: The maturity of a bond signifies the time required for a trader to recoup the bond’s
nominal value. While the majority of bonds cease to exist upon reaching maturity, this
is not universally applicable to all bonds.

Minimum Balance: For a trader to keep the high yield savings account as full of cash as possible, banks
and credit unions will waive account maintenance fees and offer their most competitive
APY as long as your balance stays above the account minimum balance requirement.

Momentum: Momentum trading involves a strategy aimed at leveraging the momentum of a
security’s price, whether it is on an upward or downward trajectory. The goal is to
initiate a position when the price starts to surge, typically utilizing technical indicators
and established chart patterns for assistance.

Money Managers: For investors with substantial portfolios, a money manager can offer a comprehensive
solution. These financial professionals develop and execute personalized investment
strategies, encompassing asset selection, transaction execution, and ongoing portfolio
monitoring. Unlike brokers who act as intermediaries, money managers take full
responsibility for managing your investments, justifying their higher fees through
active involvement and potential for growth.

Money Market Funds: Money market funds pool money in safe, short-term government and corporate loans,
offering steady returns with minimal risk.

Money Markets: This is the most common term used for a market specializing in short-term debt
instruments.

Municipal Bonds: Governments at all levels, from states to local agencies, borrow money through debt
securities.

Mutual Fund: This is the most straightforward and widely understood term for an open-end
investment company.

Mutual Funds Benefits: Mutual funds appeal to investors for several reasons, including immediate
diversification, time efficiency, and the potential for outperformance.

NASDAQ: The NASDAQ Stock Market, commonly referred to as NASDAQ, stands as a national
securities exchange owned and operated by the NASDAQ OMX Group.

NYSE: NYSE (New York Stock Exchange)

Negative Divergence: Occurs when price and technical indicators disagree, hinting at a potential price drop.

Net Asset Value: Net assets refer to the difference between a company’s total assets and its total liabilities.

Net Income: The profit a company realizes once all expenditures and taxes are subtracted from its
revenue.

Net Position: Net position can encompass the aggregate worth of all active positions or the equilibrium
between long and short positions. In the context of trading, it denotes the disparity in
value between all ongoing profitable trades and those incurring losses, leading to either a
net positive or net negative position. Additionally, it can signify whether a trader holds a
net long or net short position.

No-Load Fund: A fund that imposes no sales load fees of any kind.

Nominal Yield: The annual interest payment of a bond divided by its nominal value.

Offer: The offer price represents the amount at which you, as a trader, have the opportunity to
purchase an underlying asset that is actively traded in the market.

Offered: If a market is described as trading on the offer, it indicates that a currency pair is
drawing significant selling interest or receiving offers.

Online Trading: Engaging in trade using an internet-connected device such as a mobile device or
computer.

Open Order: An open order refers to an active, yet incomplete order that will be processed once the
specified conditions are satisfied, unless the customer decides to cancel it or it reaches
its expiration date.

Open Position: A live trade, known as an open position, has the potential to yield profits or losses and
can be either a long or short position. Once the profit or loss is realized, the trade is then
considered a closed position.

Open-End Company: The official designation for a mutual fund is its legal name. An open-end company
represents a specific category within the realm of investment companies.

Options: Contracts known as options provide the buyer with the privilege to purchase or sell a
security at a predetermined price within a designated time frame.

Order: An indication to initiate a financial transaction

PIPE Offerings (Private Investment in Public Equity): A scenario in which investors agree to buy a specific quantity of restricted shares
from a company at a designated price.

Paid: Refers to the offer side of the market dealing.

Pattern Day Trader: Any client engaging in four or more “day trades” within a span of five business
days will be subject to the condition that these day trades constitute over six
percent of the total trades conducted in the customer’s margin account during the
same five-business-day duration.

Penny Stock: Stocks traded on the OTC market, often including penny stocks, frequently face
challenges with both information availability and liquidity.

Pip: In forex trading, a pip is the basic unit of movement for a currency pair.

Pool Mining: When a collective of individuals works together to resolve a mathematical
challenge, the ensuing reward is distributed among the successful participants.
Certain miners opt to establish their own groups, with some going as far as levying
fees for membership in specific pools, recognizing that certain groups may achieve
greater success than others.

Portfolio: The aggregate portfolio of stocks, bonds, commodities, real estate, and additional
investments owned by an individual or institutional investor.

Positive Divergence: A mismatch between asset price and a technical indicator can signal a potential
upward price move.

Preferred Stock: Individuals with preferred stock enjoy special privileges. Typically, preferred stock
units are not actively traded on exchanges and lack voting rights. Nevertheless,
holders of preferred stock are granted priority in receiving dividends, often
receiving higher dividend amounts, making them the initial beneficiaries.

Premium: The premium is the excess of a bond’s price over its principal (par) amount.

Prepayment Risk: The potential for early principal repayment, leading the investor to reinvest at
lower prevailing rates than originally anticipated.

Price Level: A price level reflects the average cost of buying goods or services. It fluctuates
with demand, going up when things are popular and down when they’re not.

Primary Market: These are markets where newly issued assets are offered to investors, and the
issuer obtains the generated funds.

Profit: Earnings generated from a financial transaction.

Proof of Work: The implementation of the Proof-of-Work (PoW) consensus protocol is designed
to guarantee that only authenticated cryptocurrency miners have the ability to mine
and authenticate transactions. PoW involves solving a mathematical challenge to
validate transactions and earn compensation. The individual who successfully
completes the transaction first reaps the financial reward.

Purchase Fee: Some funds charge a shareholder fee when investors buy shares, separate from or
in addition to a front-end load.

Purchasing Power: The purchasing power of a specific unit of currency, considering the impact of
inflation, determines the quantity of goods and services that can be acquired.

Put Option: Put options are financial agreements that grant the holder the right, without
imposing an obligation, to sell an underlying asset at a predetermined price within
a designated time frame. A put buyer can capitalize on a decline in the value of the
underlying asset.

Q Ratio /Robin´s Q: This metric, introduced in 1966 by Nicholas Kaldor and popularized by Nobel Laureate
James Tobin, is calculated by dividing the market value of a company by the replacement
cost of its assets. It serves as a gauge to determine whether a firm or the overall market is
comparatively overvalued or undervalued.

Quartely CFDs: A future type characterized by expiration dates occurring every three months,
corresponding to a quarterly schedule.

Quote: A quotation represents the ultimate value at which an asset is exchanged upon the
completion of a transaction.

Rally: A rally refers to a sequence of upward movements in the prices of stocks, indices, orbonds within a brief timeframe on the stock market.

Range: A trading range is observed when a financial asset consistently fluctuates within a
specific high and low price range over a defined period. To identify this confined
range, one can chart the upper and lower price points using horizontal trendlines.

Rate: The rate indicates the relative value between two currencies, illustrating the amount
of one currency needed to purchase the other.

Real Return: What is gained from an investment net of taxes and inflation.

Real vs. Personal Property: Real property refers to real estate, whereas personal property encompasses everything
else that can be inherited, excluding real estate.

Realized Yield: The anticipated yield serves as a projection for the prospective price of the bond. It is
computed when the bondholder plans to sell the bond before it matures. While the
realized yield is, at best, an estimate, it remains a valuable tool nonetheless.

Rebalancing: Reallocating a portfolio to restore its initial composition of asset allocation.

Redeemable Bonds: The issuer has the option to redeem or settle bonds before their maturity date.

Registered Owner: Individual with direct ownership of company stocks, holding the record for stock
ownership.

Resistance Level: A resistance level, also known simply as resistance, signifies the price level where
selling activity surpasses buying interest, leading to a reversal in value and the
formation of a peak on a price chart.

Restricted Securities: Stocks or bonds bought directly from a company or its insiders, without going
through any official registration process.

Revenue: The overall financial sum, known as gross income, that a company generates through
the sale of its products and services.

Risk: The level of unpredictability regarding the anticipated return on an investment and the
possible negative consequences that may occur if the financial outcomes do not align
with the investor’s expectations.

Risk Management: Utilizing financial analysis and trading strategies, including implementing stops and
limits, to minimize and manage exposure to different forms of risk.

Risk Tolerance: An investor’s capacity and readiness to accept a partial or complete loss of an
investment in return for the possibility of higher potential gains.

Robo-Adviser: An automated digital investment advisory program designed to gather market
information and other financial data tailored to a trader’s specific goals or investment
horizons.

Rollover: A forex rollover occurs when you choose to maintain an open currency position past
the end of the trading day. This isn’t a literal closing and reopening, but rather a
seamless extension handled by your broker. You’ll experience a “swap” charge or
credit based on the interest rate differential between the two currencies involved.

Rulemaking: The procedure employed by federal agencies to formulate regulations.

Running profitor loss: Your current profit or loss while trading denotes the amount of money you would
gain or lose upon closing your active trades

SEC: SEC is an acronym for the Securities and Exchange Commission, a governmental
regulatory agency in the United States responsible for overseeing markets and
safeguarding the interests of investors.

Sales Charge: Commission for entering/exiting a mutual fund.

Saving Funds: Action to keep account funds secure.

Saving and Investing Apps: Various mobile applications leverage technology to assist individuals in savingand investing.

Savings: Earnings set aside instead of being used for consumption.

Sector: A sector refers to a subdivision within a market or economy that serves the
purpose of grouping together companies with comparable outputs for
performance analysis.

Secure Bond: A secured bond is supported by specific collateral, and in the event of a default,the designated asset is distributed among the bondholders.

Security: A financial asset that can potentially provide returns in the form of dividends(stocks) or interest payments (bonds).

Sell: When initiating a trade, traders can choose to “sell” the asset, expecting its future
value to decrease.

Senior Bond: A bond with superior precedence over another bond in asserting rights to the same
category of assets in the event of a default or bankruptcy.

Short Sales: This situation arises when a trader sells an asset that they do not currently possess.
Such selling practices are employed when traders anticipate a decline in the asset’s
price. In the event that the asset’s value decreases further, traders may capitalize
on the opportunity to buy and generate a profit.

Short Selling: A short sale involves selling a stock that an investor does not possess, or it can be
executed by delivering a borrowed stock on behalf of the investor. Typically, short
sales are resolved through the delivery of a borrowed security arranged for or on
behalf of the investor.

Small-Cap Stock: Small-cap firms possess a market capitalization within the range of $300 million
to $2 billion. These companies might find themselves in the early stages of their
existence, catering to a specific niche, or operating within an emerging sector.
Investing in small-cap companies is considered riskier due to factors such as their
relatively youthful age, modest size, and the industries they operate in.

Solo Mining: This task is undertaken by an individual who is registered as a miner. Every user
operating independently receives a mathematical problem to solve. The individual
who successfully solves it first earns a profit or is rewarded.

Speculative Stocks: Speculative stocks pertain to emerging companies whose future prospects are
uncertain. A prime illustration of a speculative stock is a startup, characterized by
a higher level of risk in terms of investment.

Spike Price: The indicated cost of an option.

Spot Market: A marketplace where goods are exchanged instantly at their current market prices

Spot Trade: Buying or selling a foreign currency, financial instrument, or commodity for
immediate delivery on a designated spot date.

Spread: These are the spreads shown in the prices of different digital assets.

Stock: A stock, also referred to as an equity, represents ownership in a company. Stocks
are available for purchase at the price of each individual share, and this cost can
differ from one company to another.

Stock Dividend Split: A stock split takes place when a company opts to distribute additional shares to its
shareholders, proportionate to the amount of stock they currently own. This is a
common event that often occurs in the aftermath of an Initial Public Offering
(IPO).

Stock Fund: It delineates a category of investment firm that predominantly allocates its
investments to stocks or equities.

Stock Market: A broad term encompassing the structured buying and selling of stocks across
various platforms, including exchanges, over-the-counter markets, and
computerized trading venues.

Stock Quotes: Catalogs displaying the prices for purchasing and selling a particular stock. These
catalogs illustrate bids, indicating the prices at which buyers are prepared to make
a purchase, and offers, representing the prices at which sellers are willing to make
a sale.

Stock Slice: At Public, you have the opportunity to become a stakeholder in any company by
investing any sum of money, irrespective of the current share price.

Stock Split: An augmentation in the quantity of a company’s stock shares without altering the
shareholders’ equity.

Stock market Circuit Breaker /Market Wide Circuit Breaker: Structured protocols established to suspend trading in the event of a significant
decrease in prices.

Stop Loss Order: A stop-loss order is a specific order type designed to initiate a buy or sell trade
when an asset reaches a predetermined price. Traders often use stop-loss orders to
safeguard their positions; by establishing a stop-loss below their current trade
value, they can mitigate the risk of significant losses.

Stop Order: Place an order to purchase or sell an asset when its price either reaches adesignated amount or the stop price is triggered.

Stop-Limit Order: A stop-limit order is a trading instruction used for purchasing or selling stocks,
incorporating elements from both stop and limit orders. Upon reaching the
designated stop price, this order transforms into a limit order, ensuring execution
at the specified price or a more favorable one.

Support: A price serving as a minimum threshold for historical or prospective price
fluctuations.

Support Levels: A support level for an asset is the price threshold that it remains above for a
certain duration. Technical analysts employ support levels, in conjunction with
resistance levels, to map out price points and forecast the stock’s performance
over time.

Suspended Trading: Trading suspension takes place when a central regulatory authority instigates a
temporary pause in the trading of a specific product. Traders and investors are not
allowed to make or initiate trades in that product during this period.

Swap: A currency swap, also known simply as a swap, refers to a foreign exchange
transaction where two parties mutually agree to exchange one currency for
another at a specified future date.

Take Profit: A take profit order is a specific instruction that automatically concludes a trade once the
price reaches a predetermined level. This proactive measure ensures that your trade
preserves its accumulated gains in the event of a market reversal, closing the position at
a targeted price point to safeguard profits.

Target-Date Fund: Target-date funds, also known as lifecycle funds, dynamically adjust their asset
allocation, incorporating a blend of stocks, bonds, and investments to align with the
fund’s overarching objectives. Specifically tailored to reach maturity around specific
retirement dates, these funds offer a diversified approach to investment management.

Technical Analysis: Technical analysis involves examining historical price movements to recognize patterns
that can aid in predicting future price changes. Utilizing indicators that automatically
monitor price activity, technical analysis generates signals that guide traders in deciding
when to initiate or conclude trades.

Tender Offer: A tender offer usually involves a proactive and extensive effort by a company or a third
party to acquire a significant portion of the securities issued by the company.

Ticker: Every publicly traded common stock in the United States is assigned a brief
abbreviation, referred to as the ticker symbol, for identification purposes.

Time Horizon: The duration of time, whether measured in months, years, or decades, that an individual
must dedicate to reach their financial objective.

Trading: It is the name given to the action of trading digital assets.

Trading Psychology: Trading psychology encompasses emotions, encompassing various mental states that can
lead a trader to either make sound or misguided decisions. It encapsulates the behaviors
that significantly impact trading actions.

Transaction cost: Transaction costs refer to the fees that traders must pay when carrying out or
maintaining their orders.

Transaction date: The day when a trade takes place.

Trend: A trend denotes the direction in which the market experiences upward or downward
movement over a defined timeframe.

Undervalued Stock: A discounted stock is one whose current market price is lower than its intrinsic value.
Capitalizing on the potential for profit in the stock market often involves investing in
stocks poised to appreciate in value, making an undervalued stock a particularly
advantageous discovery.

Unsecured Bond: A non-secured bond derives its value solely from the credibility of the issuer, as it lacks
backing from any specific asset.

Value Investing: The value investment strategy involves purchasing undervalued stocks and retaining them
until their true worth increases. This approach requires a patient investor, but making the
correct decisions can lead to substantial financial gains.

Variation margin: The amount of margin traders must hold depends on the volatility of the asset they’re
trading and the leverage they’re using.

Volatility: A high-volume market experiencing significant price fluctuations, which could present
trading opportunities depending on risk tolerance

Wash Sale: The scenario arises when a trader incurs a loss by selling or trading securities or
assets. Within a timeframe of 30 days, either before or after the sale, they engage in
activities such as acquiring a contract or option to purchase assets that are
substantially identical, directly buying substantially identical assets, or obtaining
substantially identical assets through a fully taxable trade.

Whipsaw: Whipsaw is a colloquial expression employed by traders to characterize a situation in
a highly volatile market, wherein rapid and substantial price fluctuations are swiftly
succeeded by a sharp reversal.

Wrap10-K: A summary report of a company’s annual performance that bundles the 10-K report required by the Securities and Exchange Commission (SEC) with additional commentary from the company, covering such things as the corporate vision, letter to shareholders, and business overview, among other topics.

YTD Change: Year to date (YTD) denotes the duration commencing from the initial day of the present
calendar year up to the current date. YTD percentage change pertains to evaluating the
current YTD with the corresponding time frame from the preceding year.