Glossary

A debt security issued by local government to fund capital expenditures.

A professionally managed fund that combines the investments by a group of individuals to purchase securities, bonds or other assets.

The opposite of a Covered Call, this is an options strategy where a trader sells an options contract without owning the underlying asset.

A computerized system designed by the National Association of Securities Dealers for efficient securities transactions.

An attribute of the Average Directional Index (ADX) that quantifies the occurrence of an downtrend.

An attribute of a security that gives the owner the right to transfer ownership.

A company’s total profit after operating expenses, depreciation, interest, and taxes have been backed out of revenue.

The difference in a trader’s open long and open short positions in a specific option or stock. 

The oldest stock exchange (based upon market capitalization) within the United States — owned by Intercontinental Exchange and regulated by the Securities and Exchange Commission.

A mutual fund where shares may be bought or sold void of commission or sales fees.