Polygon.io - Market Definitions Glossary

Market Definitions


AggregateA whole formed by combining several (typically disparate) elements.
American Depository SharesA U.S. dollar-denominated equity share of a foreign-based company available for purchase on an American stock exchange.
American Option A version of an options contract that allows holders to exercise the option rights at any time before and including the day of expiration.
Amortization The process of graduallly writing off the initial cost of an asset.
Anticipated Holding periodThe period of time an individual expects to hold an asset.
Antidilutive effectResult of a transaction that increases earning per common share.
ArbitrageThe simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk.
AskThis is the quoted ask, or the lowest price an investor will accept to sell a stock.
Bank Investment ContractInterest guaranteed by the bank in a portfolio over a specific time frame with a specific yield
BaseA technical analysis tool that depicts a chart pattern that visualizes when when the supply and demand of a certain stock are in relative equillibrium, resulting in a narrow trading range.
Basic Earnings per shareThe amount of a company's earnings allocableto each share of it's company's stock.
BearAn investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more.
Bear MarketAny market in which prices exhibit a declining trend. For a prolonged period, usually falling by 20% or more.
BlockLarge quantity of stock or large dollar amount of bonds held or traded. As a rule of thumb, 10,000 shares or more of stock and $200,000 or more worth of bonds would be described as a block.
Blue Chip CompanyUsed in the context of general equities. Large and creditworthy company. Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends. Gilt-edged security.
BondsBonds are debt and are issued for a period of more than one year. The US government, local governments, water districts, companies and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principalamount of the loan at a specified time. Interest-bearing bonds pay interest periodically.
Book Value Per ShareA market value ratio that weighs stockholders' equity against shares outstanding. The value of all shares divided by the number of shares issued.
BullAn investor who thinks the market will rise.
Bull MarketA period of increased stock trading and rising stock prices.
CapitalMoney available for investment.
Capital ExpenditureMoney spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.
Capital GainThe difference between a higher selling price and a lower purchasing price, resulting in a financial gain for the seller.
Capital LossThe difference between a lower selling price and a higher purchase price resulting in a financial loss to the seller.
CommodityA commodity is food, metal, or another fixed physical substance that investors buy or sell, usually via futures contracts.
Common StockTerm used to describe the total amount paid in by stockholders for the shares they purchase.
Consolidated Income StatementAn Income statement that combines the revenue, expenses, and income of a parent company and its subsidiaries.
Consolidated TapeUsed for listed equity securities. Combined ticker tapes of the NYSE and the curb. Network A covers the NYSE-listed securities and is used to identify the originating market. Network B does the same for AMEX-listed securities and also reports on securities listed on regional stock exchanges.
CornerWhen one party is able to acquire enough shares of a particular security type, such as those of a firm in a niche industry, or to hold a significant commodity position to be able to manipulate its price.
CryptocurrencyA digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Current DebtA liquidity ratio that includes the formal borrowings of a company outside of accounts payable.
Current RatioA liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.
Debt to Equity RatioCalculated by dividing a company's liabilities by its shareholder's equity.
Declaration DateThe date on which the board of directors of a company anounces the next dividend payment. This includes the dividend's size, ex-dividend date, and payment date.
Deferred RevenueAdvance payments a company recieves fpr products or services that are to be delivered or performed in the future.
Direct TransferWhen a business sells its stocks or bonds directly to savers, without going through any type of financial institution.
DividendA portion of a company's profit paid to common and preferred shareholders.
Dividend YeildRatio of a company's annual dividend compared to its share price.
Earnings Per Diluted ShareA calculation used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised.
EBITDA MarginMeasurement of a company's earnings before interest, taxes, depreciation, and amortization as a percentage of its total revenue.
Enterprise Value Over EBITDACalculated by: EV divided by EBITDA or earnings before interest, taxes, depreciation, and amortization.
ForexCurrency of another country. "Foreign Exchange".
Free Cash FlowThe cash a company produces through its operations, less the cost of expenditures on assets.
Free Cash Flow Per ShareA measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.
Futures Contract"A legally binding agreement to buy or sell a commodity or financial instrument in a designated future month at a price agreed upon at the initiation of the contract by the buyer and seller. Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity. A futures contract differs from an option in that an option gives one of the counterparties a right and the other an obligation to buy or sell, while a futures contract represents an obligation to both counterparties, one to deliver and the other to accept delivery."
Fundamental AnalysisSecurity analysis that seeks to detect misvalued securities through an analysis of the firm's business prospects. Research often focuses on earnings, dividend prospects, expectations for future interest rates, and risk evaluation of the firm.
Gross MarginCompany's net sales revenue minus its cost of goods sold.
Gross ProfitThe profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
Hedge FundInstitution that will accept funds from large institutions and high net worth individuals to buy various securities.
Interest ExpenseThis represents interest payable on any borrowings - bonds, loans, convertible debt or lines of credit.
Interest IncomeThe amount of interest that has been earned during a specific time period.
Issuance Debt SecuritiesA debt issue refers to a financial obligation that allows the issuer to raise funds by promising to repay the lender at a certain point in the future and in accordance with the terms of the contract.
Issuance Equity Shares"Issued shares are the authorized shares sold to and held by the shareholders of a company, regardless of whether they are insiders, institutional investors or the general public, as shown in the company’s annual report."
Invested CapitalTotal amount of money raise by a company issuing securities to equity shareholders and debt to bondholders, where the total debt and capital lease obligations are added to the amount of equity issued to investors.
Interest IncomeThe amount of interest that has been earned during a specific time period.
Invested Capital"Total amount of money raise by a company issuing securities to equity shareholders and debt to bondholders, where the total debt and capital lease obligations are added to the amount of equity issued to investors"
Issuance Debt SecuritiesA debt issue refers to a financial obligation that allows the issuer to raise funds by promising to repay the lender at a certain point in the future and in accordance with the terms of the contract
Issuance Equity SharesIssued shares are the authorized shares sold to and held by the shareholders of a company, regardless of whether they are insiders, institutional investors or the general public, as shown in the company’s annual report.
Long Term Capital GainAn investment sold at profit that was held for more than one year.
Market HoursUS Equities: 9:30am-4pm
Primary MarketMarket where corporations raise capital by issuing new securities.
Secondary MarketMarket in which existing, already outstanding securities, are traded among investor after they have been issued by corporations.
Spot/Cash MarketMarket where assets are bought or sold for "on the spot" delivery.
Market CapitalizationThe total dollar value of all outstanding shares. Computed as shares times current market price. Capitalization is a measure of corporate size.
Market SnapshotA Market Snapshot is a real – time MLS market update and trend analysis overview. It provides the most current sold data, active listings, inventory, and days on market counts – information that is unavailable on any other similar website.
Municipal BondsA bond issued by a state or local government.
Mutual FundsAn investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Net Cash FlowRefers to the difference between a company's cash inflows and outflows in a given period.
Net IncomeThe residual amount of earnings after all expenses have been deducted from sales.
Odd LotThe number of shares being traded is less than 100.
Open CorporationA corporation whose stock is sold to the public at large.
Operating ExpensesAn expense incurred in carrying out an organizations day-to-day activities, but not directly associated with producion.
Operating IncomeThe amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).
Options ContractThe legal right to buy or sell a specific number of shares at a set prices within a limited time period.
Paper ProfitProfit that is created when the price rises but before stock has actually been sold.
Payout RatioThe residual amount of earnings after all expenses have been deducted from sales.
Pension FundA type of mutual fund that holds assets in order to provide retirement income to its members.
PortfolioHoldings of stocks, bonds, and other investments by individual investors, banks, companies, and brokerages.
Preferred SharesShares of stock that entitle owner to a fixed dividend amount. Dividend must be paid by the company before common stock owners get paid. Shareholders usually do not have voting rights.
Price to Book RatioThe ratio of market value of a company's shares over its book value of equity.
Price to Earnings RatioIndicates the dollar amount an investor can expect to invest in a company in order to recieve one dollar of that company's earnings.
Price to Sales RatioCalculated by taking a company's market capitalization and divide it by the company's total sales or revenue over the past 12 months.
Primary Market TransactionWhen a firm's new securities are issued through an Investment Bank and the firm receives the proceeds of sale.
ProspectusDocument issued to possible buyers of a stocks and bonds outlining the financial condition of the company issuing those securities. Required by the SEC.
Qualified DividendsDividend that falls under the capital gains tax rates that are lower than the income tax rates on unqualified, or ordianry dividends.
QuoteThe price at which the last trade of a particular security or commodity took place.
RallyA rapid increase in the prices of stock after a period of decline in the stock market. (A rally can apply to an individual stock or to the entire market).
RecessionAn economic slowdown of the economy which results in rising unemployment, increased business failures, declining economic growth and higher personal bankruptcies.
Retained Earningsthe amount of net income left over for the business after it has paid out dividends to its shareholders.
Return on Average EquityFinancial ratio that measures the profitability of a company in relation to the average shareholder's equity.
Return on Invested CapitalA calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments.
Return on SalesA measure of how efficiently a company turns sales into profit.
Round LotThe number of shares being traded is at least 100.
Sales Per ShareRepresents the portion of a company's revenue that is allocated to each share of common stock.
Share Based CompensationA way of paying employees, executives, and directors of a company with shares of ownership in the business.
Shareholder's EquityDifference between total assets and total liabilities.
Share Price Adjusted CloseShows the stock's value after proposing a dividend.
Short Sale RuleNov 2010, the SEC introduced Rule 201 (Alternative Uptick Rule), a short sale-related circuit breaker that when triggered, will impose a restriction on prices at which securities may be sold short.
Specualtive StockA very high risk stock from a company with potential for substantial earnings in the future.
SplitSometimes companies split their outstanding shares into more shares. If a company with 1 million shares executes a two-for-one split, the company would have 2 million shares.
TapeService that reports prices and sizes of transactions on major exchanges-ticker tape. (2) Dow Jonesand other news wires.
Tangible Asset ValueThe value of all physical (“tangible”) assets minus all liabilities.
Tangible Book Value Per ShareThe value of a company's tangible assets divided by its current outstanding shares.
Tax LiabilityThe total amount of tax debt owed by an individual, corporation or other entity to a taxing authority like the Internal Revenue Service (IRS).
TCPTCP (Transmission Control Protocol) is a standard that defines how to establish and maintain a network conversation via which application programs can exchange data. TCP works with the Internet Protocol (IP), which defines how computers send packets of data to each other.
TradeAn oral (or electronic) transaction involving one party buying a security from another party. Once a trade is consummated, it is considered "done" or final.
Treasury BondA federal government bond that can be issued for as long as 30 years.
TrustFiduciary relationship in which one person is the holder of the title of the property subject to equitable obligation to keep or use the property fo the benefit of another.
Trust CompanyLegal institutoins that have trust functions.
TrusteeIn whom confidence is reposed as regard to the property for the benefit of another person.
TrustorAn individual or organization that gifts funds or assets to others.
Trust PropertyAssets that have been placed into a fiduciary relationship between a trustor and trustee for a designated beneficiary.
Weighted Average SharesCalculated by taking the number of outstanding shares and multiplying the portion of the reporting period those shares covered, doing this for each portion and, finally, summing the total.