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Financial Jargon, Decoded

Common terms explained in plain English. No MBA required!

Bear Market

A market condition where prices are falling or expected to fall, typically by 20% or more from recent highs.

Bull Market

A market condition where prices are rising or expected to rise, typically by 20% or more from recent lows.

Dividend

A payment made by a company to its shareholders, usually from profits, typically on a quarterly basis.

Market Cap

Market capitalization. The total value of a company's outstanding shares, calculated as share price times number of shares.

P/E Ratio

Price-to-Earnings ratio. A valuation measure comparing a company's stock price to its earnings per share.

Yield

The income return on an investment, such as interest or dividends, usually expressed as an annual percentage.