Financial Glossary
180 terms explained by our editorial team with real-world examples, practical insights, and actionable takeaways for investors at every level.
P/E Ratio
FinanceThe price-to-earnings ratio compares a stock's price per share to its earnings per share, measuring how much investors pay for each dollar of profit.
By David Morrison · 3m readPanic Selling
FinanceMass selling of securities driven by fear rather than fundamentals, often creating sharp price drops and market volatility.
By Michael Torres · 3m readPortfolio Rebalancing
FinanceThe strategic process of buying and selling assets to maintain your target allocation percentages as market movements shift your portfolio.
By Dr. Emily Park · 3m readPrice Target
FinanceAn analyst's forecast of where a stock's price should trade within 12 months based on fundamental analysis and valuation models.
By Michael Torres · 3m readPrice-to-Book Ratio
FinancePrice-to-book ratio compares a stock's market price to its book value per share, showing whether investors are paying a premium or discount to assets.
By Rachel Kim · 3m readPrice-to-Sales Ratio
FinanceP/S ratio measures a stock's price relative to its revenue per share, showing how much investors pay for each dollar of company sales.
By Alex Rivera · 3m readProxy Statement
FinanceA legal document disclosing executive compensation, board details, and shareholder proposals before annual meetings.
By Dr. Emily Park · 3m readPut Option
FinanceA contract giving the holder the right to sell shares at a specific price within a set timeframe, providing downside protection.
By Elena Vasquez · 3m read