Next video:
Loading the player...

Learn about the differences between these two words and how each one is used in the stock market.

Related Articles
  1. Investing

    Analyzing Investments With Solvency Ratios

    Solvency ratios are extremely useful in helping analyze a firm’s ability to meet its long-term obligations; but like most financial ratios, they must be used in the context of an overall company ...
  2. Financial Advisor

    What Is The Quick Ratio?

    Find out about this liquidity indicator and how it's used.
  3. Investing

    Volume

    Learn about this measure of stock activity and how investors use it to determine trading opportunities.
  4. Investing

    What Is The Difference Between The Bond Market And The Stock Market?

    The differences between the two markets involve how each product is traded and the risks they present.
  5. Insights

    Why Is Liquidity Important?

    Learn more on why liquidity is important to consider when examining a stock, next to its share price.
  6. Investing

    PEG Ratio

    Learn more about how this ratio is used to determine a stock's value based on its earnings growth.
  7. Investing

    Understanding Financial Liquidity

    Understanding how this measure works in the market can help keep your finances afloat.
  8. Financial Advisor

    What Is A Pip?

    Learn how this measure of change is used in trading currencies on the forex market.
  9. Financial Advisor

    Pivot Points

    Learn more about this technical indicator and how you can use it as a predictive tool.
  10. Insights

    Overnight Rate

    Learn about how banks use this interest rate when lending to other banks.
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  5. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  6. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
Trading Center