Financial Glossary

MACD is a momentum indicator that compares two moving averages to spot trend changes and generate buy/sell signals for traders.

Buying securities with borrowed money from your broker, amplifying both potential gains and losses on your investment.

Market cap is a company's total value calculated by multiplying its stock price by the number of outstanding shares.

A market order executes immediately at the best available price, prioritizing speed over price control.

A stock driven by social media hype and retail investor enthusiasm rather than fundamental business metrics or traditional valuation models.

Investment framework that optimizes portfolio returns for a given level of risk by diversifying across uncorrelated assets.

Investment strategy that buys stocks showing strong recent price performance, betting that winners will continue winning in the near term.

Central bank actions controlling money supply and interest rates to influence economic growth, inflation, and employment levels.

A technical indicator that smooths price data by creating a constantly updated average price over a specific time period.

A pooled investment vehicle where many investors combine money to buy a diversified portfolio managed by professionals.