Financial Glossary
Quick definitions for the metrics and concepts you see in StockLrn.
Treasury Securities
Debt instruments issued by the U.S. government, considered among the safest investments.
Dividend Yield
Annual dividend payment divided by stock price, expressed as a percentage.
Index Fund
A fund designed to track the performance of a market index.
Gross Domestic Product
The total monetary value of all goods and services produced within a country over a period.
Inflation Rate
The rate at which the general level of prices for goods and services rises over time.
Federal Funds Rate
The interest rate at which banks lend reserves to each other overnight, set by the Federal Reserve.
Consumer Price Index
A measure that tracks the average change in prices paid by consumers for goods and services.
Unemployment Rate
The percentage of the labor force that is jobless and actively seeking employment.
Trade Deficit
Occurs when a country imports more goods and services than it exports.
Market Capitalization
Company value based on stock price × shares outstanding.
Market Maker
A firm that provides liquidity by continuously quoting buy and sell prices for a security.
Dark Pool
A private exchange where large institutional orders are executed without pre-trade transparency.
Circuit Breaker
Automatic trading halts triggered when markets decline by specified percentages.
Bid-Ask Spread
The difference between the highest price a buyer will pay and the lowest price a seller will accept.
Order Book
A real-time list of all outstanding buy and sell orders for a security at various price levels.
Institutional Ownership
The portion of shares held by large institutions like mutual funds and asset managers.
Alpha
A measure of investment performance relative to a benchmark.
Securities and Exchange Commission
The U.S. federal agency responsible for regulating securities markets and protecting investors.
FINRA
A self-regulatory organization overseeing U.S. broker-dealers and their registered representatives.
Insider Trading
Buying or selling securities based on material, non-public information—illegal when it breaches a duty.
Fiduciary Duty
A legal obligation to act in the best interest of another party, such as a client or beneficiary.
Accredited Investor
An individual or entity that meets SEC financial thresholds to invest in unregistered securities.
Analyst Ratings
Opinions from research analysts (e.g., Buy/Hold/Sell) and sometimes price targets.
Beta
A measure of volatility compared to the overall market.
Leverage
The use of borrowed money to amplify potential returns.
Moving Average
A technical indicator that smooths price data over a specific period.
Resistance
A price level where selling pressure prevents further price increases.
Support
A price level where buying pressure prevents further price declines.
Relative Strength Index
A momentum oscillator measuring speed and magnitude of price changes on a 0–100 scale.
MACD
Moving Average Convergence Divergence—a trend-following momentum indicator.
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