Plain-English definitions for the terms you'll encounter on your financial journey.
A condition in which securities prices fall and widespread pessimism causes the downward spiral.
The difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept for an asset.
A limited-risk options strategy that combines multiple spreads to profit from a stock staying within a specific price range.
A neutral options strategy that involves selling both a bull put spread and a bear call spread to profit from low price movement.
A significant decline in economic activity spread across the economy, lasting more than a few months. It is traditionally defined as two consecutive quarters of negative GDP growth.
The practice of grouping many individuals together to spread the financial risk of potential losses across the entire group.
The difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept for an asset.