A - G Archives - HowTheMarketWorks Education Center

What Is A Long Stock?

Bavan Arumugam A - G August 31, 2017October 31, 2018

Long Stock What is a long stock? A long stock is an expression used when you own shares of a company. It represents a claim on the company’s assets and earnings. As you increase your holdings of a stock, Read More

The Business Cycle

Kevin Smith A - G, Economics April 19, 2017August 20, 2018

What Is The Business Cycle? The Business Cycle is the broad, over-stretching cycle of expansion and recession in an economy. The Business Cycle is concerned with many things – unemployment, industrial expansion, inflation rates, but the most important indicator is Read More

Credit Cards

Kevin Smith A - G, Personal Finance April 19, 2017June 27, 2018borrowing, credit, credit cards

What are Credit Cards? Credit cards is a form of unsecured credit (meaning a loan without collateral) that you can use to make everyday purchases. All credit card purchases are made using a loan – you borrow money from your Read More

Credit – Using Borrowed Money

Kevin Smith A - G, Beginners, Personal Finance October 4, 2016August 29, 2017assignment

What Is Credit? “Credit” is when you have the ability to use borrowed money. This can come in many different forms, from credit cards to mortgages. There is a wide range of ways to use credit, which means that it Read More

What is Economics?

Kevin Smith A - G, Economics June 7, 2016June 8, 2016

Definition “Economics” is often called the Dismal Science – it studies the trade-offs between making choices. The purpose of economics is to look at the different incentives, assets, and choices facing people, businesses, schools, and governments, and see if there Read More

Contract

Kevin Smith A - G, Glossary May 27, 2016June 25, 2018

Definition A “Contract” is a legally binding agreement between two parties (people, companies, or both). Having a contract means that if one party does not keep their word, the other can sue them in court to either force them to Read More

Banks, Credit Unions, and Savings & Loan Institutions

Kevin Smith A - G, Glossary April 16, 2016April 25, 2016

When talking about Banking, people generally group Banks, Credit Unions, and Savings & Loan companies all in one group. They do provide similar services, but they each have specific differences that might make them a better or worse fit for Read More

What is the Federal Reserve?

Kevin Smith A - G, Beginners, Economics, Glossary January 14, 2016June 14, 2018

Definition The Federal Reserve Bank, or the “Fed”, is the central banking system of the United States. It serves as the primary regulator of the US dollar, as well as the “lender of last resort” for other banks. Regulating Currency The Read More

Cottage Industry

Kevin Smith A - G, Glossary January 13, 2016June 14, 2018

Definition Cottage Industry, or the “Putting Out System” is a production system of producing goods that relies on producing goods, or parts of goods, by craftsmen at home, or small workshops, instead of large factories. History “Cottage Industry” describes the Read More

Forex

HTMW Team A - G, Glossary, Specific Types Of Investments September 1, 2015October 31, 2018

Live Forex trading includes negotiating of national bills which is performed on a live basis at 24 hour, around-the-clock period. Forex is derived from the words Foreign Exchange which is known as the global market that does business in money trading. Read More

Bond

Phil Simard A - G, Bonds, Glossary, The 10 Terms You Need To Know August 24, 2015October 31, 2018bond investment, bond market, bonds, convertible bonds

Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time. This is seen as a loan from the bond holder to the corporation. The value of Bonds traded are greater than the value of stocks traded. Read More

Asset

Phil Simard A - G, Glossary, The 10 Terms You Need To Know August 18, 2015October 31, 2018

Definition: An asset is anything that has monetary value and can be sold. Assets can be anything from a pencil (though it is not worth much) to a skyscraper to things like Stocks and ETFs. There can also be intangible Read More

GTD Good Till Day Orders

Kevin Smith A - G, Glossary July 20, 2015October 31, 2018

Good Till Date Order Terms If you have ever placed a limit or stop order on HowTheMarketWorks, you have see the “Good Till Day” order term on the trading menu: A “Good-Till-Day” order is simply one that will cancel at Read More

What is the Dow Jones Industrial Average

HTMW Team A - G, Glossary June 26, 2015October 31, 2018djia, dow jones, what is the djia, what is the dow jones industrial average

The Dow Jones Industrial Average, also called the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is a stock market index that shows how 30 large publicly-owned companies based in the United States have traded during a standard trading session in the stock market. Read More

Gross National Product

HTMW Team A - G, Glossary October 9, 2013October 31, 2018Economic Activity, GDP, GNP, Gross Domestic Product, Gross National Product, market value of all goods and services, National Income

Gross National Product is the value of all goods and services produced by a country’s residents. Read More

Free Cash Flow

HTMW Team A - G, Glossary October 9, 2013October 31, 2018FCFE, FCFE Equations, FCFF, FCFF Equations, FCFs, Free Cash Flow

Free Cash flow is the cash available to all the capital providers of a company. There are two types of free cash flows: 1) Cash flow available to pay out to all capital providers and 2) Free Cash Flow to Equity (FCFE). Read More

Form-8K

HTMW Team A - G, Glossary October 8, 2013October 31, 201810-K, 10-Q, annual reports, Form-8K, investment decision making, quarterly reports, Securities Exchange Act

The Form-8K is a SEC-mandated report filed by public companies to report unexpected events or transactions that are material in nature, and thus have an impact on the share prices of the company. Read More

Fixed Income Analysis

HTMW Team A - G, Glossary October 8, 2013October 31, 2018assess fixed income securities, bond valuation, Credit Analysis, credit and risk analysis, Fixed Income Analysis, Government versus Corporate Bonds, valuate fixed income securities

Fixed income analysis is the process of evaluating and analyzing fixed income securities for investment purposes. Read More

Financial Modeling

HTMW Team A - G, Glossary, rewrites October 8, 2013October 31, 2018asset valuation, DCF Analysis, Debt projections, Discount Rate, financial estimates, financial forecasts, Financial Modeling, financial Projections, financial securitys value, Historical financial statements, investment decision making, investment valuation, Pro-forma financial statements, Projection of Cash Flows, valuation methodology, valuation program, value of a financial security, value of an asset

In investment valuation, financial modeling refers to the procedure and methodology performed to determine the value of an asset or financial security. Fundamentally, a business or company’s current value can be viewed as being derived from its future cash flow streams. An investor deciding whether to purchase or sell a stock, therefore, will be interested in estimating such value. Read More

Earnings Report

HTMW Team A - G, Glossary October 3, 2013October 31, 2018competitive position, earnings report, financial condition, Future performance, industry position, Key performance drivers, risk factors, strategic plans

The earnings reports released by companies can be invaluable in providing such information. Released by public companies on a quarterly and annual basis, they can be used to assess and gauge a company’s: financial condition, strategic plans, industry and competitive position, Key performance drivers and risk factors and Future performance. Read More

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