Investment Terms

A non-fungible token is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital item, and thus they are not interchangeable. NFTs can represent digital files such as art, audio, videos, items in video games, and other forms of creative work. While the digital files themselves are infinitely reproducible, the NFTs representing them are tracked on their underlying blockchains and provide buyers with proof of ownership.[1] Blockchains such as Ethereum, and Flow each have their own token standards to define their use of NFTs.
NFTs can be used for commodity digital creations, such as digital art, video game items, and music files. Access to any copy of the original file, however, is not restricted to the owner of the token. The first NFTs were Ethereum-based and appeared around 2015. Increased interest in the market for NFTs has resulted in increased speculation, as the same investors who had previously speculated on cryptocurrencies began trading NFTs at greatly increasing volumes.
NFTs mostly run on a proof-of-work blockchain, which is less energy efficient than a proof-of-stake blockchain. This has resulted in some criticism of the carbon footprint for NFT transactions.

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A non-fungible token is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital item, and thus they are not interchangeable. NFTs can represent digital files such as art, audio, videos, items in video games, and other forms of creative work. While the digital files themselves are infinitely reproducible, the NFTs representing them are tracked on their underlying blockchains and provide buyers with proof of ownership.[1] Blockchains such as Ethereum, and Flow each have their own token standards to define their use of NFTs.NFTs can be used for commodity digital creations, such as digital art, video game items, and music files. Access to any copy of the original file, however, is not restricted to the owner of the token. The first NFTs were Ethereum-based and appeared around 2015. Increased interest in the market for NFTs has resulted in increased speculation, as the same investors who had previously speculated on cryptocurrencies began trading NFTs at greatly increasing volumes.NFTs mostly run on a proof-of-work blockchain, which is less energy efficient than a proof-of-stake blockchain. This has resulted in some criticism of the carbon footprint for NFT transactions.

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The 52-week high/low is the highest and lowest price at which a security, such as a stock, has traded during the time period that equates to one year.
A 52-week high/low is a technical indicator used by some traders and investors who view these figures as an important factor in the analysis of a stock's current value and as a predictor of its future price movement. An investor may show increased interest in a particular stock as its price nears either the high or the low end of its 52-week price range.
The 52-week high/low is based on the daily closing price for the security. Often, a stock may actually breach a 52-week high intraday, but end up closing below the previous 52-week high, thereby going unrecognized. The same applies when a stock makes a new 52-week low during a trading session but fails to close at a new 52-week low. In these cases, the failure to register as having made a new closing 52-week high/low can be very significant.

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The 52-week high/low is the highest and lowest price at which a security, such as a stock, has traded during the time period that equates to one year.A 52-week high/low is a technical indicator used by some traders and investors who view these figures as an important factor in the analysis of a stock's current value and as a predictor of its future price movement. An investor may show increased interest in a particular stock as its price nears either the high or the low end of its 52-week price range.The 52-week high/low is based on the daily closing price for the security. Often, a stock may actually breach a 52-week high intraday, but end up closing below the previous 52-week high, thereby going unrecognized. The same applies when a stock makes a new 52-week low during a trading session but fails to close at a new 52-week low. In these cases, the failure to register as having made a new closing 52-week high/low can be very significant.

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The term redemption has different uses in the finance and business world, depending on the context. In finance, redemption describes the repayment of any money market fixed-income security at or before the asset's maturity date. Investors can make redemptions by selling part or all of their investments such as shares, bonds, or mutual funds. In business and marketing, however, consumers often redeem coupons and gift cards for products and services.
People who invest in fixed-income securities receive regular interest payments at a fixed value. These instruments can be redeemed before or on the maturity date. If redeemed at the time of maturity, an investor receives the par value or the face value of the security.
Corporations that issue bonds or other securities may pay investors a redemption value when they buy back their securities on or before the maturity date. Interest payments generally stop before they do this. The redemption value is typically higher than a bond's par value.
The redemption of these bonds, referred to as called bonds, is at a premium price above par.
For a mutual fund investor to make a redemption, the investor must inform their fund manager of their request. The manager must process the request within a certain amount of time and distribute the funds to the investor. The amount owed to the investor is normally the current market value of their shares less any fees and other charges.

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The term redemption has different uses in the finance and business world, depending on the context. In finance, redemption describes the repayment of any money market fixed-income security at or before the asset's maturity date. Investors can make redemptions by selling part or all of their investments such as shares, bonds, or mutual funds. In business and marketing, however, consumers often redeem coupons and gift cards for products and services.People who invest in fixed-income securities receive regular interest payments at a fixed value. These instruments can be redeemed before or on the maturity date. If redeemed at the time of maturity, an investor receives the par value or the face value of the security.Corporations that issue bonds or other securities may pay investors a redemption value when they buy back their securities on or before the maturity date. Interest payments generally stop before they do this. The redemption value is typically higher than a bond's par value. The redemption of these bonds, referred to as called bonds, is at a premium price above par.For a mutual fund investor to make a redemption, the investor must inform their fund manager of their request. The manager must process the request within a certain amount of time and distribute the funds to the investor. The amount owed to the investor is normally the current market value of their shares less any fees and other charges.

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The Sharpe ratio was developed by Nobel laureate William F. Sharpe and is used to help investors understand the return of an investment compared to its risk.1 2 The ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Volatility is a measure of the price fluctuations of an asset or portfolio.
Subtracting the risk-free rate from the mean return allows an investor to better isolate the profits associated with risk-taking activities. The risk-free rate of return is the return on investment with zero risk, meaning it's the return investors could expect for taking no risk. The yield for a U.S. Treasury bond, for example, could be used as the risk-free rate.
Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return.
The Sharpe ratio has become the most widely used method for calculating the risk-adjusted return. Modern Portfolio Theory states that adding assets to a diversified portfolio that has low correlations can decrease portfolio risk without sacrificing return.
Adding diversification should increase the Sharpe ratio compared to similar portfolios with a lower level of diversification. For this to be true, investors must also accept the assumption that risk is equal to volatility, which is not unreasonable but may be too narrow to be applied to all investments.
The Sharpe ratio can be used to evaluate a portfolio’s past performance where actual returns are used in the formula. Alternatively, an investor could use expected portfolio performance and the expected risk-free rate to calculate an estimated Sharpe ratio.

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The Sharpe ratio was developed by Nobel laureate William F. Sharpe and is used to help investors understand the return of an investment compared to its risk.1 2 The ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Volatility is a measure of the price fluctuations of an asset or portfolio.Subtracting the risk-free rate from the mean return allows an investor to better isolate the profits associated with risk-taking activities. The risk-free rate of return is the return on investment with zero risk, meaning it's the return investors could expect for taking no risk. The yield for a U.S. Treasury bond, for example, could be used as the risk-free rate.Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return.The Sharpe ratio has become the most widely used method for calculating the risk-adjusted return. Modern Portfolio Theory states that adding assets to a diversified portfolio that has low correlations can decrease portfolio risk without sacrificing return.Adding diversification should increase the Sharpe ratio compared to similar portfolios with a lower level of diversification. For this to be true, investors must also accept the assumption that risk is equal to volatility, which is not unreasonable but may be too narrow to be applied to all investments.The Sharpe ratio can be used to evaluate a portfolio’s past performance where actual returns are used in the formula. Alternatively, an investor could use expected portfolio performance and the expected risk-free rate to calculate an estimated Sharpe ratio.

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A blue-chip index is an index that tracks shares of the well-known and financially stable publicly traded companies known as blue chips. Blue-chip stocks represent companies that provide investors with consistent returns, making them desirable investments. Blue-chip companies are considered a gauge of the relative strength of an industry or economy.
A blue-chip index is a bellwether, meaning news reports and analysts tend to emphasize the performance of major blue-chip stock indexes, such as the S&P 500 and Dow Jones Industrial Average each day.
The blue-chip index seeks to gain exposure to a variety of stable stocks by purchasing shares of an exchange-traded fund or index fund, rather than selecting individual stocks. Besides the DIJA and S&P 500, other examples of blue-chip indexes include the New Europe Blue Chip Index which tracks 30 of the top stocks traded in central, eastern and southeastern Europe, and the DAX Index, which tracks the top 30 companies on the Frankfurt Stock Exchange.
The term blue chip originates from the game of poker, where the highest denominated chip is coloured blue. While there is no universal definition of what makes up a blue-chip company, there are several qualities each company shares.

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A blue-chip index is an index that tracks shares of the well-known and financially stable publicly traded companies known as blue chips. Blue-chip stocks represent companies that provide investors with consistent returns, making them desirable investments. Blue-chip companies are considered a gauge of the relative strength of an industry or economy. A blue-chip index is a bellwether, meaning news reports and analysts tend to emphasize the performance of major blue-chip stock indexes, such as the S&P 500 and Dow Jones Industrial Average each day.The blue-chip index seeks to gain exposure to a variety of stable stocks by purchasing shares of an exchange-traded fund or index fund, rather than selecting individual stocks. Besides the DIJA and S&P 500, other examples of blue-chip indexes include the New Europe Blue Chip Index which tracks 30 of the top stocks traded in central, eastern and southeastern Europe, and the DAX Index, which tracks the top 30 companies on the Frankfurt Stock Exchange.The term blue chip originates from the game of poker, where the highest denominated chip is coloured blue. While there is no universal definition of what makes up a blue-chip company, there are several qualities each company shares.

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