Financial Dictionary

Confused by Wall Street jargon? Search our comprehensive dictionary of stock market terms to build your financial vocabulary.

Bear Market

A market condition in which the prices of securities are falling, and widespread pessimism causes the stock market's downward spiral to be self-sustaining.

Bull Market

A financial market of a group of securities in which prices are rising or are expected to rise.

Blue Chip

A nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders.

ETF (Exchange Traded Fund)

A type of investment fund and exchange-traded product, i.e., they are traded on stock exchanges.

IPO (Initial Public Offering)

The process of offering shares of a private corporation to the public in a new stock issuance.

Margin

The money borrowed from a brokerage firm to purchase an investment.

Options

Financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date.