Investing Glossary

Plain-English definitions of the trading and investing terms we use in our daily AI market analyses. Every term includes a concrete example, related concepts, and is auto-linked from the rest of the site.

  • 52-Week HighThe highest price at which a stock has traded in the past year.
  • AI TradingUsing artificial intelligence systems to make or assist trading decisions.
  • BetaA measure of a stock's volatility relative to the broader market.
  • Dividend YieldAnnual dividends per share divided by share price, expressed as a percentage.
  • DrawdownThe peak-to-trough decline of a portfolio or stock.
  • EPSEarnings Per Share: a company's net profit divided by outstanding shares.
  • Fundamental AnalysisEvaluating a stock based on a company's financial statements and business prospects.
  • Intrinsic ValueThe estimated true value of a business based on fundamentals, independent of market price.
  • Margin of SafetyThe discount between a stock's market price and its estimated intrinsic value.
  • Market CapitalizationThe total market value of a company's outstanding shares.
  • MomentumThe tendency of a stock's recent price trend to continue.
  • P/E RatioPrice-to-Earnings ratio: a stock's price divided by its earnings per share.
  • S&P 500An index of 500 of the largest US publicly traded companies by market capitalization.
  • Sector RotationShifting investments between sectors based on the economic cycle.
  • Sentiment AnalysisMeasuring market or news mood to forecast stock moves.
  • Technical AnalysisForecasting price using historical price and volume data.
  • Value InvestingBuying stocks trading below their estimated intrinsic value.
  • VolatilityThe magnitude of price fluctuations over time.