Category: Definitions

An over-the-counter (OTC) market is a decentralized marketplace for trading securities and other financial instruments. It is not a physical location, but rather a network...

An order is a request to buy or sell a stock. It is a way for investors to communicate their investment intentions to a broker...

Market capitalization, also known as market cap, is the total value of all outstanding shares of a company. It is calculated by multiplying the current...

An index is a statistical measure of change in a securities market or a particular segment of the market. It is a way of measuring...

An exchange, also known as a stock exchange, is a marketplace where stocks and other securities are bought and sold. Exchanges provide a centralized platform...

Earnings per share (EPS) is a company’s net income (profit) divided by the number of outstanding shares of common stock. EPS is a valuable measure...

A dividend is a distribution of a portion of a company’s earnings to a class of its shareholders. When a company earns a profit or...

Common stock is a type of security that represents ownership in a corporation. It is the most basic form of equity, and it gives shareholders...

A call option is a contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an underlying asset...

A bull market is a market condition in which stock prices are rising. It is typically defined as a rise of 20% or more in...

Beta is a measure of a stock’s volatility relative to the market. It is calculated by comparing the stock’s price movements to the price movements...

A bear market is a term that describes a sustained period of time where stocks, securities, or assets continue to decrease in value. A bear market...