Finance, translated.

Selecting investments or changing allocations in an attempt to outperform a benchmark.

How capital is divided among asset classes such as equities, bonds, and cash.

Buying more after an investment’s price falls.

A statement of assets, liabilities, and shareholders’ equity at a point in time.

A reference index or alternative used to evaluate performance and decisions.

The gap between the highest current bid and lowest current offer.

A debt security representing money lent to a government or company.

The increase between an asset’s purchase cost and sale proceeds.

An event that may cause the market to reassess an investment.

Returns earned on both original capital and prior returns.

Favoring information that supports an existing belief.

A measure of how closely two return series tend to move together.

An area where a data provider, monitoring rule, or source set has incomplete visibility.

The recorded acquisition cost used to measure return and often tax gain or loss.

A reduction in each existing share’s ownership percentage when more shares are issued.

Spreading capital across distinct investments and risks.

A distribution a company or fund pays to shareholders.

Earnings before interest, taxes, depreciation, and amortization.

Earnings per share divided by price, the inverse of the P/E ratio.

A company value measure that combines equity value with net debt and related claims.

A pooled investment fund whose shares trade on an exchange.

A fund’s annual operating expenses expressed as a percentage of assets.

First in, first out: the oldest available tax lot is treated as sold first.

Cash generated after operating needs and necessary capital expenditure.

A result flagged as relevant even though it does not actually satisfy the intended condition.

Revenue minus direct cost of goods or services, divided by revenue.

A practical rule used to produce a useful estimate or classification without proving it is correct.

Management’s forward-looking expectations for future performance.

A fund designed to track a defined market index.

An estimate of an asset’s value based on future economic benefits and risk.

An order to buy at a maximum price or sell at a minimum price.

How readily an asset can be traded without materially moving its price.

The tendency to feel losses more strongly than equivalent gains.

A buffer between price paid and a conservative value estimate.

Share price multiplied by shares outstanding.

An instruction to trade promptly at the best available market price.

A durable advantage that helps protect attractive economics from competition.

Interest-bearing debt minus cash and cash-like assets.

The return or benefit forgone by choosing one use of capital over another.

Price per share divided by earnings per share.

An investment’s share of total portfolio value or risk.

Return after accounting for inflation.

Profit or loss recorded on shares that have been sold.

Restoring a portfolio toward its intended allocation or risk limits.

Income generated from selling goods or services before expenses.

Return considered alongside the uncertainty and potential loss taken to earn it.

Return on invested capital: an estimate of operating profit earned on capital used by the business.

The difference between an expected trade price and the actual execution price.

An order activated when a trigger price is reached, commonly becoming a market order.

A specific block of shares with its own purchase date and cost.

A falsifiable explanation of why an investment may produce an attractive outcome.

The gap between a fund’s actual return and the index it aims to follow.

A European regulatory framework for eligible collective investment funds.

The magnitude and frequency of price movement.

Short-term operating assets minus short-term operating liabilities.

Income received over a period expressed relative to price or value.