Money Market Account

A type of account offered by banks and credit unions that generally pay higher interest rates than regular savings accounts.  They also typically include higher insurance protection and check writing/debit card privileges.  Though they may pay better rates, these...

Fiduciary

A person or organization legally bound to act in the best interest of their clients (and put those interests ahead of their own).  Within finance, many roles may be seen as carrying fiduciary responsibility.  This can be found in the relationships between trustee and...

Dead Cat Bounce

An example of a sucker’s rally, a Dead Cat Bounce is a temporary and short-lived uptrend within a prolonged decline/bear market that is followed by a continuation of prevailing downtrend.  Small rallies are frequent in downtrends, but must be taken for what they...

Covariance

A statistic that measures the relationship between the movement of two asset prices.  If two stocks are rising and falling together, they are said to have a positive covariance.  But when they move opposite of each other, the covariance is said to be negative. ...

Correlation

A statistic that measures how much two securities move in relation to each other.  It may also be used to measure the movement of a stock in relation to an index (for example, the S&P 500).  This can give investors an idea of how the stock is performing in...

Chicago Board Options Exchange

The world’s largest options exchange.  The Chicago Board Options Exchange (Cboe) was founded in 1973 with contracts focusing on individual equities, indexes, and interest rates.  It offers options on more than 2,200 companies, 22 stock indices, and 140...