🎓 INVESTING 101
← Back to terminal

Investing 101 — the terms, in plain English

New to markets or running a class stock competition? Here's what the words on the terminal actually mean. Skim it, or search the page (Ctrl/Cmd-F) for a term.

The basics

Stock / Share

A share is a small piece of ownership in a company. Own a share of Apple and you own a tiny slice of Apple. "Stock" is the general word; "shares" are the individual units you buy.

Shareholder

Anyone who owns shares of a company. As a part-owner you can benefit if the company grows (and lose if it shrinks).

Stock exchange

A marketplace where shares are bought and sold. The two big U.S. ones are the NYSE and the Nasdaq.

Ticker symbol

The short code for a stock — Apple is AAPL, Microsoft is MSFT, Tesla is TSLA. You search by ticker in this terminal.

Large-cap

"Cap" = market value. Large-cap means the biggest companies (roughly $10B+). This terminal focuses on them because they're widely followed and have lots of data.

Indexes (how the "market" is measured)

S&P 500

An index tracking 500 of the largest U.S. companies. It's the most common stand-in for "the U.S. stock market." When people say "the market was up today," they usually mean the S&P 500.

Nasdaq 100

The 100 largest non-financial companies on the Nasdaq exchange — heavily tech (Apple, Microsoft, Nvidia). It tends to move more than the S&P because it's tech-concentrated.

Dow Jones (the "Dow")

An older index of 30 big, well-known U.S. companies. Influential and quoted in the news, but only 30 names.

Russell 2000

Tracks 2,000 smaller ("small-cap") U.S. companies. A read on how smaller businesses are doing.

ETF proxy

You can't buy an index directly, so we track each index using an ETF that mirrors it: S&P 500→SPY, Nasdaq 100→QQQ, Dow→DIA, Russell 2000→IWM. The numbers move together.

Funds

ETF (Exchange-Traded Fund)

A basket of many stocks you can buy as one ticker, trading all day like a stock. SPY holds all 500 S&P companies, so one purchase gives you broad exposure.

Mutual fund

Also a basket of stocks, but it only prices once per day (after the close) and is often bought through a brokerage or retirement plan.

Index fund

A fund that simply copies an index (like the S&P 500) instead of trying to beat it. Usually low-cost and popular for long-term investing.

Holdings / weight

The individual stocks inside a fund, and how much of the fund each one makes up (its "weight" %). Use the Fund Holdings Lookup to see what's inside QQQ, SPY, etc.

Reading a quote

Price & % change

The last traded price, and how much it's moved today versus yesterday's close. Green = up, red = down.

Day range / 52-week range

The low–high the price hit today (day range) and over the past year (52-week range). The 52-week range shows where today's price sits versus the year.

Volume

How many shares traded. High volume means lots of activity/interest; a "volume spike" can signal big news.

Market cap

The company's total value = share price × number of shares. Apple at a few trillion dollars is "mega-cap."

Valuation metrics (is it cheap or expensive?)

EPS (Earnings Per Share)

The company's profit divided by its shares. Higher generally means more profitable per share.

P/E (Price-to-Earnings)

Price ÷ EPS. Roughly, how many dollars you pay for each dollar of profit. A high P/E means investors expect strong growth (or the stock is pricey); a low P/E can mean it's cheap (or troubled). Always compare within the same industry.

P/B (Price-to-Book)

Price versus the company's net assets ("book value"). Under ~1 can mean undervalued; very high can mean investors expect growth.

P/S (Price-to-Sales)

Price versus revenue. Useful for companies that aren't profitable yet.

PEG

P/E adjusted for growth. A PEG near 1 is often seen as "fairly priced for its growth."

Dividend & dividend yield

A dividend is a cash payment some companies send shareholders. The yield is that payment as a % of the share price — like interest for holding the stock.

Beta

How much a stock moves relative to the overall market. Beta of 1 ≈ moves with the market; above 1 = more volatile; below 1 = steadier.

Earnings & analysts

Earnings report

Every quarter, companies report how much they made. Stocks often swing hard on these.

Beat vs. miss

Analysts estimate earnings ahead of time. Coming in above estimate = a "beat" (usually good); below = a "miss." This terminal labels both.

Guidance

The company's own forecast for future quarters. Weak guidance can sink a stock even after a "beat."

Analyst rating

Wall Street analysts rate stocks Buy / Hold / Sell. An "upgrade" is a more positive rating; a "downgrade" is more negative.

Price target

An analyst's estimate of where a stock's price should go. It's an opinion, not a guarantee.

Market conditions

Bull vs. bear market

A bull market is a sustained rise (optimism); a bear market is a sustained fall of ~20%+ (pessimism).

Volatility

How much prices swing. High volatility = bigger, faster moves up and down.

Sector

Stocks are grouped into sectors (Technology, Healthcare, Energy, etc.). The sector heatmap and rankings show which groups are leading or lagging.

Market breadth

How many stocks are rising versus falling. Strong breadth (most stocks up) is a healthier rally than just a few big names carrying the market.

Accounts & this terminal

Qualified vs. non-qualified

Qualified = tax-advantaged retirement accounts (IRA, 401k). Non-qualified = a regular taxable brokerage account. In Portfolio you can tag each holding so you see both balances.

Market Mood (our gauge)

A 0–100 "fear vs. greed" style score we build from market momentum, breadth, and safe-haven demand. It's a rough read to gauge the vibe — click "what goes into this?" to see the math. It's a heuristic, not an official index.

Rumor / Unverified

Social-media chatter we surface for sentiment. It is clearly labeled and is NOT confirmed fact — always verify before trusting it.

Educational overview only — not financial advice. Definitions are simplified for learning; real-world details can be more nuanced. Always verify with primary sources.