Financial Terms Glossary

See definitions for some of the frequently used terms in our posts & publications below:

At-The-Money Options Definition

An option is considered At-The-Money when the price of the underlying asset (the stock) is in line with the option’s strike price. Click Above For More.

Beta

A stock’s Beta is a measurement of how volatile it is compared to the rest of the overall market. See more in the link above.

Call Option Definition

A call is a type of option contract that gives the buyer of a call the right, but not the obligation to purchase a stock or ETF at a given price (Strike Price) if exercised by a specific date (Expiration Date). Read more in the link above.

Debt/Equity (ttm)

A Stocks Debt/Equity ratio is calculated by dividing a company’s total liabilities by its shareholder equity. Read more using the link above.

Debt Rating

A company or country’s debt rating is an assessment of how they are able to pay back their debts, as well as any interest that is accrued on said debts. Read more using the link above.

Dividend Yield

A stock’s Dividend Yield is a percentage of money that they will return to shareholders via a direct payment, at a specified percentage of their share price during earnings calls. Read more by using the link above.

Expiration Date:

An option’s Expiration Date is that date at which the option must be exercised or it will expire worthless – Read more using the link above.

Industry

A stock’s Industry is its group of most closely related peers. Typically, they will offer similar products or services based on the specific industry’s name, and will contain companies of a variety of sizes. Read more by clicking the link above.

In-The-Money

An option contract is In-The-Money when the price of the underlying asset is above the strike price (for calls) or below the strike price (for puts). Read more by clicking the link above.

Market Cap

Market Capitalization, abbreviated Market Cap, is the value of a company in the market’s eyes, based on multiplying the price per share by the number of shares outstanding. Read more by clicking the link above.

Moving Average

A Moving Average is an average of all of the closing prices of a stock or ETF over a time period, most often specified in days. Read more by using the link above.

MRQ – Most Recent Quarter

MRQ, or Most Recent Quarter, refers to any metric that is being calculated by the quarterly earnings report’s data that happened last. Read more by clicking the link above.

Options Contract

An Options Contract, also called an Option or a Contract, enables a buyer to exercise the right in the future to buy or sell a security, for a certain price by a certain date. Read more by clicking the link above.

Payout Ratio

A security’s Payout Ratio refers to how much of its total earnings are dedicated towards satisfying their dividend obligations to shareholders. Read more by following the link above.

P/E (ttm) – Price To Earnings Ratio For The Trailing Twelve Months

A security’s P/E (ttm) is the result of dividing its current price per share by the company’s Earnings Per Share (EPS) for the last twelve months. Read more by clicking the link above.

P/B – Price To Book Value

A company’s Price To Book Value Ratio is found by dividing the stock’s share price by it’s underlying book value/share. Read more by following the link above.

Price

A security’s price is the dollar value at which the buyers & sellers agree to complete their transaction for 1 share of a company’s equity. Read more by clicking the link above.

Put

A call is a type of option contract that gives the buyer of a call the right, but not the obligation to sell a stock or ETF at a given price (Strike Price) if exercised by a specific date (Expiration Date). Read more in the link above.

RSI – Relative Strength Index

A security’s RSI, or Relative Strength Index, is a measurement that tracks the momentum of a stock, tracking when a stock becomes overbought or oversold. Read more in the link above.

Sector

A Sector is a portion of the economy that either produces similar goods & services, or performs with similar operating characteristics as its peers. Read more by clicking the link above.

Strike Price

An option contract’s Strike Price is the price that the underlying asset must be above (call) or below (put) before an option can be executed. Read more by following the link above.

Ticker

A Ticker, or Ticker Symbol is a string of letters & sometimes characters that is used to identify a stock, ETF or other security. Read more by following the link above.

Total Cash (mrq)

Total Cash (mrq) is the total amount of cash that a company reported having on hand in its most recent quarter. Read more by following the link above.

TTM – Trailing Twelve Months

TTM or Trailing Twelve Months refers to a security’s performance for the last twelve consecutive months prior to the report being written. Read more by clicking the link above.

Underlying Asset

An Underlying Asset is the asset on which a derivative’s price comes from. When purchasing a stock option, the underlying asset is the stock itself that your option is based upon. Read more by clicking the link above.

VIX

The VIX, also known as the Volatility Index, was created by the Chicago Board Options Exchange (CBOE), tracking the market’s anticipation of 30-day forward looking volatility. Read more by clicking the link above.

Volatility

Volatility is a measurement of the steadiness & predictability of market or a security’s performance. Read more by following the link above.

% Institutional Ownership

A security’s % Institutional Ownership is a measurement of what percentage of a company’s outstanding shares are owned by institutional investors. Read more by clicking the above link.