Glossary of Key Terms

Asset: Something of value that a person or company owns.

Capital: Money used to start or grow a business.

Commodity: Raw materials, like oil or gold, that are traded.

Dividend: A share of profits paid to shareholders.

Equity: Ownership in a company, represented by stock.

Exchange: A marketplace where securities are bought and sold.

Index: A benchmark that tracks the performance of a group of stocks.

Liquidity: How easily an asset can be converted to cash.

Market Capitalization: The total value of a company's outstanding shares.

Portfolio: A collection of investments held by an individual or institution.

Prospectus: A document with details about a security offering.

Return: The profit or loss on an investment.

Security: A tradable financial asset, like a stock or bond.

Shareholder: Someone who owns stock in a company.

Stock Exchange: A marketplace where stocks are bought and sold.

Ticker Symbol: A short code that represents a company's stock.

Volatility: How much the price of a security fluctuates.

Yield: The income return on an investment.

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