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Learn Trading and Investing Terminology | Hopium

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A filing from a public company that outlines major announcements and events information that is crucial for shareholders.

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Bull Market

A market that has an upward trend. Investors who believe that the market will rise are called “bulls”.

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Dollar Cost Averaging

The strategy of how an investor allocates their investments into different time periods towards a stock. This strategy reduces risks and volatility on an investment.

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ETF

A type of investment fund that comprises different types of securities. The basket of securities are traded throughout the day on the stock market and fluctuate prices all day.

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Going Private

When a company is able to deregister a class of its equity securities. It’s because the securities are no longer held or they are delisted from an exchange.

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Margin of Safety

The provided room available for error when investors only purchase securities when the market price is below their intrinsic value

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Payback Period

The amount of time it takes for investors to receive their ROI. It’s the amount of time where investments reach a break-even point. A shorter payback period is more desirable since the longer an investment takes the less opportunity investors have to invest in other securities

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Short Selling

The process of borrowing securities and immediately selling them. This requires short sellers to be able to have good insights and decision making abilities to buy back securities at a lower price.

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Short Squeeze

A stock that has a sudden steep increase that forces other buyers and traders who anticipated a decline to buy in order to reduce the amount of loss. This occurs from external reasons from politics to new policies that change a stock. As a result, that stock is being bought up and shorts are being “squeezed” out.

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