Dictionary
Balance Sheet
balance sheet
asset
real asset
commodity
asset class
financial asset
liability
owners' equity
initial public offering (IPO)
mark-to-market accounting
write down
off-balance sheet
mergers and acquisitions (M&A)
hostile takeover
joint venture (JV)
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Currencies
fiat money
Federal Reserve System (The Fed)
regional Fed Banks
Federal Open Market Committee (FOMC)
Beige Book
European Central Bank (ECB)
euro area
European Union (E.U.)
ECB Governing Council
Bank of England (BoE)
Swiss National Bank (SNB)
Bank of Canada (BoC)
Reserve Bank of Australia (RBA)
Bank of Korea (BoK)
Bank of Thailand (BoT)
other currencies
exchange rate
pip
appreciate
depreciate
devalue
exchange rate risk
convertible
U.S. Dollar Index (DXY)
Bank of Japan (BoJ)
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Fixed Income
fixed income
cash flow
time value of money
maturity
default
haircut
bankruptcy
bond
creditor
debtor
bondholder
par value
principal
coupon
fixed-rate
floating-rate
zero-coupon
premium
discount
yield to maturity (YTM)
yield curve
inverted
U.S. Treasury Security
bund
yield
interest rate risk
credit risk
collateral
secured
unsecured
basis points (bps)
convertible bond
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Fundamental Analysis
fundamental analysis
buy and hold
diversification
management bias
fiscal year
quarter
earnings season
price-to-earnings (P/E) ratio
trailing earnings
forward earnings
profit margin
book value
price-to-book (P/B) ratio
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History, Politics, and International Organizations
Weimar Republic
Smoot-Hawley Tariff Act of 1930
Great Depression
populism
International Monetary Fund (IMF)
Organization of Petroleum Exporting Countries (OPEC)
Group of Seven (G7)
Group of Twenty (G20)
Lost Decade
Great Recession
Arab Spring
Occupy Wall Street (OWS)
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Macroeconomics
inflation
Consumer Price Index (CPI)
Producer Price Index (PPI)
purchasing power
nominal
real
inflation risk
hyperinflation
disinflation
deflation
gross domestic product (GDP)
consumption
investment
government spending
import
export
balance of trade
trade surplus
trade deficit
debt-to-GDP ratio
recession
v-shaped recovery
double dip recession
leading indicator
lagging indicator
survey data
hard data
unemployment rate
working-age population
labor force
U3 unemployment rate
U6 unemployment rate
U1, U2, U4, and U5
initial jobless claims
continuing jobless claims
stagflation
supply shock
consumer confidence
The Conference Board
Consumer Confidence Index (CCI)
University of Michigan/Thomson Reuters Consumer Sentiment Index
Bureau of Labor Statistics (BLS)
S&P/Case-Shiller Home Price Index
fiscal policy
fiscal stimulus
subsidy
tax
austerity
deleverage
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Options
option
strike price
call
put
expiration
in-the-money (ITM)
at-the-money (ATM)
out-of-the-money (OTM)
write
premium
intrinsic value
time value
American option
European option
implied volatility
Black-Scholes model
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Securities
security
counterparty
exchange
over-the-counter (OTC)
liquidity
liquidity risk
financial markets
capital markets
money markets
primary market
bid-to-cover ratio
underwriter
secondary market
secondary offering
securitization
asset-backed security (ABS)
mortgage-backed security (MBS)
derivative
underlying
spot transaction
forward contract
futures contract
swap
Delta One
exchange-traded fund (ETF)
exchange-traded note (ETN)
long
sell short
buy to cover
short
short squeeze
bullish
bearish
delist
trading halt
insider information
insider trading
portfolio
asset allocation
idiosyncratic risk
systematic risk
credit rating
investment grade
junk
Moody's
Fitch Ratings
Standard & Poor's
Commodity Futures Trading Commission (CFTC)
risk asset
safe haven
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Stocks
market capitalization (market cap)
shareholder
board of directors
dividend
ex-dividend date
dividend yield
share buyback
stock dilution
value stock
growth stock
blue-chip
large cap
mid cap
small cap
Dow Jones Industrial Average (DJIA)
Nasdaq
Standard & Poor's 500 Index (S&P 500)
Russell 2000 Index (Russell 2000)
New York Stock Exchange (NYSE)
Toronto Stock Exchange (TSX)
FTSE 100 Index
Deutscher Aktien Index (DAX)
Euronext Paris
CAC 40
Bovespa Index (Bovespa)
Nikkei 225
Tokyo Stock Exchange (TSE)
Shanghai Stock Exchange (SSE) Composite Index
Hang Seng Index (HSI)
Taiwan Stock Exchange Corporation (TSEC)
Bombay Stock Exchange (BSE) Sensex
stock
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Technical Analysis
technical analysis
volatility
mean reversion
moving average
simple moving average (SMA)
exponential moving average (EMA)
oversold
overbought
trend line
reversal
support
resistance
pullback
correction
pre-market
intraday
after-hours
52-week high
52-week low
volume
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The Monetary System
fractional reserve banking
deposit
bank reserves
required reserve ratio (RRR)
bank run
bank
credit union
Federal Deposit Insurance Corporation (FDIC)
National Credit Union Shared Insurance Fund (NCSIF
money supply
M0
monetary base
M1
M2
money market account (MMA)
M3
money market fund (MMF)
repurchase (repo) agreement
M4 and M5
central bank
monetary policy
hawkish
dovish
monetary stimulus
zero lower bound
quantitative easing (QE)
interbank rate
London Interbank Offered Rate (LIBOR)
Shanghai Interbank Offered Rate (SHIBOR)
systemic risk
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Trade
protectionism
trade war
tariff
quota
embargo
sanctions
free trade agreement (FTA)
repatriate
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Current Term
principal
Category: Fixed Income
The principal of a bond is equivalent to the bond's face value. Bondholders receive two kinds of payments: principal and interest, or coupon. All bonds pay principal payments, but not all bonds pay interest or coupon payments. Have a Question?
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