Financial Glossary

Master the language of the markets. 4 terms and counting.

MACD (Moving Average Convergence Divergence)

Technical Analysis

A trend-following momentum indicator that shows the relationship between two moving averages of a security's price. Used to identify potential buy and sell signals.

Margin

Trading Strategies

Borrowed money from a brokerage to purchase securities. Buying on margin amplifies both gains and losses and requires maintaining a minimum account balance.

Market Capitalization

Fundamentals

The total market value of a company's outstanding shares. Calculated by multiplying share price by total shares outstanding. Used to classify companies as large-cap, mid-cap, or small-cap.

Moving Average

Technical Analysis

A technical indicator that smooths price data by creating a constantly updated average price over a specific time period (e.g., 50-day or 200-day moving average).