Financial Glossary
Quick definitions for the metrics and concepts you see in StockLrn.
Goodwill
An intangible asset representing the premium paid over fair market value in an acquisition.
Amortization
The gradual write-off of an intangible asset's cost or a loan principal over time.
Current Ratio
A liquidity ratio comparing current assets to current liabilities.
Put Option
A contract giving the holder the right to sell an asset at a specified price before expiration.
Implied Volatility
The market's forecast of the likely magnitude of a stock's price movement, reflected in option prices.
Options Greeks
Metrics (Delta, Gamma, Theta, Vega, Rho) that measure different risk dimensions of an options position.
Financial Statements
Core reports that show profitability, balance sheet strength, and cash generation over time.
EBITDA
Earnings before interest, taxes, depreciation, and amortization (a rough cash-earnings proxy).
EPS (Earnings Per Share)
Net income divided by shares outstanding; profit per share.
Coupon Rate
The annual interest rate paid by a bond issuer on the bond's face value.
Duration
A measure of a bond's sensitivity to interest rate changes, expressed in years.
Market Capitalization
Company value based on stock price × shares outstanding.
Order Book
A real-time list of all outstanding buy and sell orders for a security at various price levels.
FINRA
A self-regulatory organization overseeing U.S. broker-dealers and their registered representatives.
MACD
Moving Average Convergence Divergence—a trend-following momentum indicator.
Bollinger Bands
Volatility bands placed above and below a moving average, widening and narrowing with market volatility.
Fibonacci Retracement
Horizontal lines indicating potential support/resistance at key Fibonacci ratio levels.
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.
Price-to-Sales Ratio
A valuation metric comparing a company's stock price to its revenue per share.
EV/EBITDA
Enterprise value divided by EBITDA, used to compare companies regardless of capital structure.
New to Investing?
Explore our Learning Center for structured lessons, flashcards, and quizzes.