Plain-English definitions for the terms you'll encounter on your financial journey.
A method of evaluating a security by attempting to measure its intrinsic value using economic factors.
An option with intrinsic value, where the strike price is favorable compared to the market price.
The perceived or calculated value of an asset, an investment, or a company independent of market price.
The difference between the intrinsic value of a stock and its current market price.
An option that has no intrinsic value, where the strike price is unfavorable compared to the market price.
An investment strategy that involves picking stocks that appear to be trading for less than their intrinsic value.