“Specialization” is when a labor force begins to divide total production, leading to a rise of experts or specialists. This is called the Division of Labor, and it typically results in much higher productivity of labor.

A Spending Plan is a plan of what you will spend each month, and includes fixed and variable spending. They are used similarly to a budget, but many find them to be more flexible

Spot and Futures contracts are a standardized, transferable legal agreement to make or take delivery of a specified amount of a certain commodity, currency, or an asset at the current date. The price is determined when the agreement is made.

The difference between the ask price and the sell price is called the “spread” and it is kept by the broker.

Stagflation is high inflation and high unemployment are occurring simultaneously.

S&P 500 Index (Standard and Poor’s 500 Index) is a composite of the 500 most actively traded public companies in all ten economic sectors of the U.S. It is maintained by Standard and Poor’s, a division of the Parent company McGraw-Hill.

By measuring the compilation of similar stocks instead of just one or two stocks, a Stock Index provides information about that particular market or segment.

The stock market crash of 1929 was a massive crash in stock prices on the New York Stock Exchange, and marks the largest financial crash in the United States.

If you are brand new to investing then take time to understand what you are reading when viewing a Stock Exchange Symbol and learn Stock Market Investing Basics.

Stock volatility information can be used in many different ways but here is a quick and easy bit of stock volatility information that you can begin using today.

Stocks are a share of ownership of a company. If you own a stock, you are involved in some of its management decisions, and you are entitled to some of the company’s profits.

A Stop (or stop loss) order and Limit order are orders that try to execute when a certain price threshold is reached. These orders are mirrors of each other; they have the same mechanics, but have opposite triggers.

A Stop Limit is an order that combines the features of stop order with the features of a limit order. A stop limit order executes at a specified price (or better) after a specified stop price is reached.

A Stop Loss Order is placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a security position.

A Stop Order is an order to buy or sell a stock when the stock price reaches a specified price, which is known as a stop price. When the specified price is reached, the stop order becomes a market order.

Straddles an option strategy that profits with volatility. You simultaneously buy long a call at Strike Price 1 and long a put at Strike Price 1. This creates a triangular shaped payoff and profit graph where the reward is based on the volatility of the stock – you’ll make a profit if the stock’s price makes a BIG move in either direction, but take a loss if it doesn’t move much.

Straight line depreciation is the most commonly used and simplest form of depreciation.

A Strangle is a volatility bet where you simultaneously long a put at Strike Price 2 and long a put at Strike Price 1, betting the stock price will make a big movement in either direction. This is similar to a Straddle, but the trader shorts the stocks instead of buying them (but the profit is basically the same)

In Economics, “Supply” means the relationship between prices and production. In general, the higher the market price of a good or service is, the more producers are willing to sell of it.

The stock market is the perfect place to see Supply and Demand in action! Many buyers and many sellers meet to trade – with the “market equilibrium” moving in real-time based on new information

In technical analysis, “Support” is a price trend line that a stock usually won’t fall below (at least in the short term), while “Resistance” is a price trend line that it has trouble rising above

Market Risk, aka Systemic Risk, which is a measure of how much of a loss an investor is facing while trading. 

Technical Analysis is the use of technical indicators comprising of statistics using past market information to predict which direction the security price will move. Read this post to learn about the 6 principles that formed the foundation of technical analysis, and some of its purposes and uses.

Tick

Tick refers to a change in price, either up or down.

A “Ticker Symbol” is a unique one to five letter code used by the stock exchanges to identify a company.

Time Decay is the inclination for options to decrease in worth as the expiration date draws near. The extent of the time decay is inversely connected to the changeability of that option.

Everywhere you turn there is another proprietary stock market timing system being sold. This is usually a computer program that tries to analyze real-time data for split-second trade decisions

A Trading Halt is the temporary suspension of trading of a security for a specific period of time. Trading Halts typically last for an hour, but can extend into days.

Trailing Orders are an order type that allows to set a moving stop or limit target price.

Trailing Stop is a Stop Loss order which is placed as a percentage value as opposed to an absolute dollar value. The order will only execute if the price of the security falls by a certain percentage.

A percentage Trailing Stop is a Stop Loss order which is placed as a percentage value as opposed to an absolute dollar value. The order will only execute if the price of the security falls by a certain percentage.

A dollar Trailing Stop is a Stop Loss order which is placed as a dollar value. The order will only execute if the price of the security falls by that dollar amount.

A Trailing Stop Loss is calculated in a manner like the way we calculated our initial stop loss, the difference being that while we calculated our stop loss from the entry price, we’re calculating our trailing stop loss from the highest price since entry.

Treasury bills, often referred to as T-bills, are short-term securities (maturities of less than one year) offered and guaranteed by the federal government. They are issued at a discount and pay their full face value at maturity.

A “Long Put” means buying the right to sell a stock at a certain price at a certain date in the future. You would buy a “Long Put” if you expected the stock’s price to go down.

A long stock is an expression used when you own shares of a company. It represents a claim on the company’s assets and earnings.

A short put, the opposite of a short call, is the term used when you sell a put option for an underlying asset. You make a flat profit if the stock’s price goes up, but lose money if the price goes down

You “Short a stock” by borrowing a stock from your broker, then immediately selling it. Later, you buy the stock back on the market, and return it to your broker. You make a profit if the stock’s price dropped between when you sold it and when you bought it back.

A short stock is an expression used when you sold shares of a company that you did not own beforehand, and is described in more detail in this post!

Solvency is the possession of assets in excess of liabilities, or more simply put, the ability for one to pay their debts. People and organizations who are not “Solvent” face bankruptcy

The New York Stock Exchange (or NYSE) is the largest stock exchange in the world, where buyers and sellers come to trade U.S. stocks!