Financial Glossary
Quick definitions for the metrics and concepts you see in StockLrn.
Amortization
The gradual write-off of an intangible asset's cost or a loan principal over time.
Coupon Rate
The annual interest rate paid by a bond issuer on the bond's face value.
Credit Rating
An assessment of the creditworthiness of a bond issuer, assigned by rating agencies.
Municipal Bonds
Debt securities issued by state and local governments, often offering tax-exempt interest income.
Treasury Securities
Debt instruments issued by the U.S. government, considered among the safest investments.
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 Maker
A firm that provides liquidity by continuously quoting buy and sell prices for a security.
Alpha
A measure of investment performance relative to a benchmark.
Relative Strength Index
A momentum oscillator measuring speed and magnitude of price changes on a 0–100 scale.
Bollinger Bands
Volatility bands placed above and below a moving average, widening and narrowing with market volatility.
Candlestick Patterns
Visual price patterns formed by one or more candlesticks that signal potential reversals or continuations.
Head and Shoulders
A bearish reversal chart pattern with three peaks—the middle peak (head) being the highest.
Volume Profile
A chart study showing trading volume distributed across price levels rather than time.
PEG Ratio
P/E ratio divided by expected earnings growth rate, adjusting valuation for growth.
Discounted Cash Flow
A valuation method that estimates present value of a company's future cash flows.
Margin of Safety
The difference between a stock's intrinsic value and its market price, providing a buffer against error.
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