Financial Terms

What’s a Mortgage Backed Security?Mortgage-Backed security (MBS) is comprised of many individual loans to home buyers, which originated from a regulated and authorized financial institution and...

What Are Pivot Points? Pivot Points are prices on a chart calculated by technical analysts. This is a very popular form of technical analysis that can be used for any market, asset, and any time...

What Is a Security?Securities are tradable financial assets. These include stocks, bonds, and derivatives through the overall list is much broader. In the past, a security was a piece of paper that...

What is Return on Investment?Return on investment, often simply called ROI is the ratio of profit to the cost of an investment. ROI is used by businesses and individuals to evaluate the efficiency of...

What Is Volatility?The volatility of a security is the expected fluctuation of its price at any given time. The expectation is based on the asset's standard deviation from the historical mean. The...

What Is Margin Account?A margin brokerage account is an account that is approved to borrow money from a broker in order to purchase securities. A margin account holder pays interest on any loans they...

What’s An Options Contract?An option contract grants the buyer of the contract the right, but not the obligation, to buy or sell an underlying asset at a specific price on a specific date....

What’s an Earnings Calendar? An earnings calendar is the quarterly schedule and timetable laying out individual release dates of financial reports containing performance data for publicly traded...

What Does Leverage Mean?Leverage is the buying or selling of an asset with a portion of the price paid by an investor and the remainder covered by a lender. Under such an agreement, the asset becomes...