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Glossary

Glossary

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Glossary

Credit Default Swap

What Is A Credit Default Swap? A credit default swap (CDS) is a financial derivatives contract that acts as an insurance policy that an investor takes out in order to…

Glossary

Pump And Dump Scheme

A "pump and dump" is an illegal scheme used to artificially boost the price of a stock by making false and misleading claims about a company's business prospects. Then, the…

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Glossary

Quick Ratio

The quick ratio is an accounting formula that measures a company's short-term liquidity. Also known as the "acid test" ratio, the quick ratio is a more stringent measurement than the…

Glossary

Current Ratio

The current ratio is a business accounting formula that measures a company's ability to pay its short-term obligations, namely those due within a year. The mathematical formula is expressed as:…

Glossary

Monetary Policy

Monetary policy is made up of the decisions and actions taken by a central bank to achieve its goals, which are typically to promote economic growth, create jobs and lower…

Glossary

Money Supply

The money supply is the amount of currency available to consumers and businesses to make payments, in addition to the money held in checking and savings accounts. It is also…

Glossary

Weighted Average

An important part of measuring various items in investing, a weighted average is a mathematical formula that takes into account the relative size or importance of each item in a…

Glossary

Repurchase Agreement (Repo)

A repurchase agreement is a short-term loan structured as the sale of securities. As part of the repo, the seller agrees to buy the securities back at a later date.…

Glossary

Ponzi Scheme

A Ponzi scheme is a type of financial fraud that occurs when the perpetrator promises consistent, guaranteed returns on an investment. In reality, however, it simply involves paying early investors…

Glossary

Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a statistic derived and used around the globe to identify prevailing inflationary or deflationary pressures. It is calculated by averaging the prices of a…

Glossary

Layering

Layering is an illegal tactic used to manipulate markets as a means of driving the price of an asset up or down, which is followed by a trade in the…

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