E55 20 New Words

E55 20 New Words by LB

Arbitrage

The simultaneous purchase and sale of the same asset in different markets to profit from tiny differences in the asset's listed price. 💰📈🤝 | profit, advantage, exploitation

Liquidity

The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. 💧💸🏃‍♂️ | solvency, cash availability, marketability

Settlement

The process of transferring assets and cash to fulfill the obligations of a trade. 🤝✔️📦 | resolution, clearance, conclusion

Trading

The buying and selling of assets (financial instruments, commodities, etc.) with the goal of generating a profit. 📈📉🔄 | speculation, investing, transaction

Stock Exchange

A marketplace where stocks, bonds, and other securities are bought and sold. 🏢📈🤝 | market, bourse, trading floor

Trading Volume

The total number of shares or contracts exchanged during a specific period. 📈🔢📊 | turnover, market activity, volume

Capital Gain

The profit earned from the sale of an asset that exceeds the original purchase price. 💰⬆️🎉 | profit, appreciation, return

Mutual Fund

A professionally managed investment fund that pools money from many investors to purchase a diversified portfolio of securities. 🤝💰💼 | fund, investment pool, portfolio

ETF (Exchange Traded Fund)

A type of investment fund that is traded on stock exchanges, similar to stocks. It holds assets such as stocks, bonds, or commodities and typically tracks an index. 📈📊🤝 | index fund, basket, investment product

Order

An instruction to buy or sell a security or other asset in the market. 📝📈➡️ | command, direction, instruction

Financial Risk

The possibility of losing money on an investment or business venture. ⚠️📉💸 | uncertainty, peril, hazard

Investor

An individual or entity that commits capital with the expectation of receiving financial returns. 💰📈🎯 | shareholder, backer, financier

Market Capitalization (Market Cap)

The total value of a company's outstanding shares of stock, calculated by multiplying the share price by the number of shares outstanding. 🏢🔢💰 | valuation, market value, capitalization

Earnings Per Share (EPS)

A company's profit allocated to each outstanding share of common stock. It serves as an indicator of a company's profitability. 🏢📊💰 | profitability, per

Price to Earnings Ratio (P/E Ratio)

The ratio for valuing a company that measures its current share price relative to its per

Asset

A resource with economic value that an individual, company, or organization owns or controls with the expectation that it will provide future benefit. 💰🏢✅ | resource, holding, property

Sector

A group of companies that operate in the same segment of the economy or share similar business activities. 🏢🏢🏢 | industry, field, category

Stock Quote

Real

Bond

A debt security issued by a corporation or government entity to raise capital. It represents a loan made by investors to the issuer. 🤝💰📜 | fixed income, debt, security

Diversification

An investment strategy of spreading investments across different assets and sectors to reduce risk. 💰📊🛡️ | allocation, spreading, balancing