Deflation Definition: What is Deflation? Deflation is a period of falling prices of goods and services in the economy. This is the opposite of inflation, which is when general prices rise over time. Normally, economies are inflationary over the long term. This means that the value of money declines over time. A dollar is able… [Read More]
Basic Investment Terms and Definitions
Welcome to the comprehensive list of investment terms and their definitions, designed for investors at all levels.
Please refer to the basic stock market terms here.
The definitions here of the various basic investment terms expand and augment the list referenced above. These definitions are of interest to intermediate and advanced readers, specially for practicing investors in the stock market. We go into sufficient detail necessary to make the concept clear, and give examples where necessary.
View articles in other categories: Dividend Stocks, Large Cap Stocks, Mid Cap Stocks, small cap stocks, Macro-economic, Value Investing Tips, Investing Questions, Business, Personal Finance, Investment Guide
Recommended investing sites
Value premium refers to the observation that value stocks tend to return better than growth stocks on a risk-adjusted basis. Fama and French defined the value premium as the difference in returns between high book to market stocks and low book to market stocks, also referred to as HML. Value premium has been shown to… [Read More]
Definition of Stocks Stock, equity or share as used in finance represents a part ownership in a company. Ownership of a stock entitles the owner (stockholder or shareholder) with all the profits distributed in form of dividends in direct proportion to the amount of shares owned. For example, consider a hypothetical company that has issued… [Read More]