Investing & the Stock Market Vocabulary: 100 Key English Terms
Global markets speak English: company announcements, analyst reports, fund documents, trading platforms and financial news all use the same core vocabulary. This glossary explains the words investors and traders meet every day, from stocks, bonds and ETFs to orders, valuation ratios, risk and market news, with natural Turkish equivalents and realistic examples. It explains terms only and does not recommend any investment.
100 terms
11 topics
48 core terms
200 example sentences
Read, understand, keep going
No account needed. Read the meaning, see where the term is used, then study the examples. Click any word in the lesson for help. You can also select a word and press Alt + Enter.
Stocks & Shares
stock
noun
Meaning
A type of investment that gives you a small part of the ownership of a company. People also use the word for the shares of one particular company.
Where you use it
One of the most common words in investing, especially in American English. People buy, sell, hold and pick stocks; news reports say stocks rose, fell or closed higher. It can be countable (three tech stocks) or uncountable (we own stock in the company).
Examples
Bank stocks led the market higher after the strong quarterly results.
She has held the same three stocks for more than ten years.
Usage note
In British English 'stock' can also mean goods kept in a warehouse (Turkish 'stok'). In investing, it always means company shares.
One of the equal units into which the ownership of a company is divided. If you own shares, you own a part of the company.
Where you use it
The basic counting unit of ownership: you buy 100 shares, a company issues new shares, and the share price changes during the day. British texts prefer 'shares' where Americans often say 'stock'. Official Turkish documents use 'pay', while everyday speech uses 'hisse'.
Examples
I bought 200 shares of the airline when the price dropped below 250 lira.
The company will issue 50 million new shares to finance the expansion.
Usage note
'Share' is also a common verb (to share something), so 'shares' in a headline can be confusing. In market news, 'shares fell' always means the company's stock price fell.
Common phrases
buy shares · issue shares · share price · number of shares · shares outstanding
The amount of money one share of a company costs on the market at a given moment, set by the orders of buyers and sellers.
Where you use it
Used in every market report. A share price rises, falls, jumps, slides or recovers; it can be quoted at the open, the close or in real time. Americans also say 'stock price'.
Examples
The share price jumped 12 percent after the company announced a new contract.
A low share price does not necessarily mean that a company is cheap.
Usage note
A share price alone tells you little about value; it must be compared with earnings or book value per share.
Common phrases
share price rose · share price fell · current share price · share price target
Short for initial public offering: the first time a private company sells its shares to the public and lists them on a stock exchange.
Where you use it
Said letter by letter: I-P-O. A company launches, prices or postpones an IPO; investors subscribe to it or apply for shares; a stock debuts or makes its debut on the first trading day. The verb phrase is 'go public'.
Examples
The IPO was oversubscribed four times, so investors received only part of what they asked for.
The company postponed its IPO because of weak market conditions.
Usage note
IPO refers only to the first offering. If a listed company sells more shares later, it is a secondary offering or, in many cases, a rights issue.
Common phrases
launch an IPO · IPO price · oversubscribed IPO · go public · IPO prospectus
A person or organisation that owns one or more shares in a company and therefore owns part of it, with rights such as voting and receiving dividends.
Where you use it
Common in company reports and news. Companies talk about returning value to shareholders and hold an annual general meeting for them. A major or controlling shareholder owns a large stake; minority shareholders own small stakes. Americans often say 'stockholder'.
Examples
The founding family remains the largest shareholder with a 51 percent stake.
Shareholders approved the dividend proposal at the general meeting.
Usage note
Do not confuse 'shareholder' with 'stakeholder'. Stakeholders are all groups affected by a company, such as employees, customers and the community.
Common phrases
major shareholder · minority shareholder · shareholder value · shareholder meeting · controlling shareholder
Ownership in a company in the form of shares. In accounting, it also means the value left for shareholders after all debts are subtracted from the assets.
Where you use it
In investing, 'equities' (usually plural) is the formal word for shares as an asset class: equity markets, equity funds, global equities. In financial statements, 'equity' or 'shareholders' equity' is the owners' part of the balance sheet.
Examples
We reduced our exposure to equities and added more government bonds.
The bank's equity grew strongly thanks to retained profits.
Usage note
Turkish speakers sometimes translate 'özkaynak' as 'own source'. The correct term is 'equity' or 'shareholders' equity'.
Common phrases
equity market · equity fund · global equities · shareholders' equity · private equity
A short code of letters that identifies a company's shares on a stock exchange, used on trading screens and in price lists.
Where you use it
Investors type the ticker symbol into a trading platform to find a stock. US tickers have one to five letters, such as AAPL for Apple; Borsa Istanbul codes usually have four or five letters. People often say just 'ticker'.
Examples
What's the ticker symbol for the new airline? I can't find it on my app.
The company will trade under the ticker symbol ABCDE from Monday.
Usage note
Use the preposition 'under': a company trades under a ticker symbol.
Common phrases
trade under the ticker symbol · stock ticker · ticker tape
A share in a large, well-known and financially strong company with a long record of stable earnings, often paying regular dividends.
Where you use it
Used in news and investment talk for the biggest and most established listed companies, usually those in the main index. Writers say blue chips led the market or that investors moved into blue-chip names. Often just 'blue chips'.
Examples
In uncertain times, many investors prefer blue-chip stocks that pay steady dividends.
Blue-chip stocks held up well while smaller companies fell sharply.
Usage note
The name comes from poker, where blue chips traditionally have the highest value.
Common phrases
blue-chip stocks · blue-chip company · blue-chip index · blue chips led
A company whose shares are officially admitted to trading on a stock exchange, so anyone can buy and sell them and the company must publish regular information.
Where you use it
Listed companies must publish financial results, announce important events and follow governance rules. A company gets listed through an IPO, can be delisted, or can be dual-listed on two exchanges. Americans often say 'public company' or 'publicly traded company'.
Examples
As a listed company, we must disclose any major contract on the same day.
There are now more than 500 listed companies on the exchange.
Usage note
False friend: 'public company' means a listed company owned by shareholders, not a state company. Turkish 'kamu şirketi' is a 'state-owned company'.
Common phrases
listed company · become a listed company · publicly listed · dual-listed · delisted
The part of a company's shares that can actually be traded on the market, excluding shares held by controlling owners, the state or other long-term holders.
Where you use it
Usually given as a percentage: a free float of 25 percent. Index providers use free float to decide weights, so a company with a small free float has less weight in the index. A low free float can make a stock less liquid and more volatile.
Examples
With a free float of only 10 percent, the stock can move sharply on small orders.
The main shareholder sold a stake to increase the free float and attract index funds.
Usage note
Turkish 'halka açıklık' and 'fiili dolaşım' are not always the same number: shares registered as public can still be held by long-term owners.
Common phrases
free float ratio · low free float · increase the free float · free-float adjusted
A share in a company whose sales and profits are expected to grow much faster than the average, often paying little or no dividend because it reinvests its earnings.
Where you use it
Usually contrasted with value stocks, which look cheap on ratios such as P/E. Growth stocks often trade at high valuations and react strongly to interest rate changes. Fund managers describe their style as growth, value or a blend.
Examples
Growth stocks fell sharply when interest rates started to rise.
The software company is a classic growth stock: revenue is up 40 percent, but it pays no dividend.
Usage note
The opposite style is 'value investing'; 'value stock' means a share that looks cheap compared with its profits or assets.
Common phrases
growth stocks · growth investing · growth versus value · high-growth company
Describing a company with a relatively small market capitalization, or its shares. The exact limit depends on the market and the index provider.
Where you use it
Used as an adjective (small-cap stocks, a small-cap fund) and as a noun (small caps). The related terms are mid-cap and large-cap. Small-cap shares often offer more growth potential but also more volatility and lower liquidity.
Examples
Small-cap stocks outperformed the main index during the early stage of the recovery.
The fund focuses on small-cap companies in the industrial sector.
Usage note
'Cap' is short for 'capitalization'. Write it with a hyphen before a noun: 'small-cap stocks'.
Common phrases
small-cap stocks · small-cap index · small-cap fund · mid-cap · large-cap
A loan that an investor gives to a government or company. The issuer usually pays regular interest and returns the original amount on a fixed date.
Where you use it
A core product in every portfolio. Governments and companies issue bonds; investors buy, hold and sell them. News reports talk about bond prices, bond yields and the bond market. Short-term government debt is often called bills, not bonds.
Examples
The Treasury issued a new five-year bond with a fixed coupon.
When interest rates rise, the price of existing bonds usually falls.
Usage note
Turkish separates 'bono' (up to one year) and 'tahvil' (longer). English 'bond' usually means the longer kind; 'bill' or 'note' is used for shorter maturities.
Common phrases
issue a bond · bond yield · bond market · bond price · bond holder
The income an investment produces, shown as a yearly percentage of its price. For bonds, it is the return an investor gets if the bond is bought at today's price.
Where you use it
Used especially for bonds and dividend stocks. Bond yields rise, fall, climb or ease; news reports follow the 10-year yield closely. Because yield moves opposite to price, 'yields rose' means bond prices fell. Also a verb: 'the bond yields 7 percent'.
Examples
The 10-year government bond yield climbed to its highest level in a year.
Investors looking for income often compare the yield on bonds and dividend stocks.
Usage note
Yield and coupon are different: the coupon is fixed when the bond is issued, but the yield changes every day with the price.
Common phrases
bond yield · 10-year yield · yields rose · high yield · yield to maturity
The regular interest payment on a bond, or the interest rate the bond pays each year on its face value, fixed when the bond is issued.
Where you use it
Bond documents and traders say a bond carries or pays a coupon of, for example, 6 percent; coupons can be paid annually, semi-annually or quarterly. A bond without coupons is a zero-coupon bond, sold at a discount.
Examples
The bond pays a 7 percent coupon twice a year.
Because rates have fallen, older bonds with high coupons now trade above face value.
Usage note
The name comes from the paper coupons that investors once cut from the bond certificate to collect interest. Pronounced KOO-pon in British English and often KYOO-pon in American English.
Common phrases
coupon rate · coupon payment · pay a coupon · zero-coupon bond · fixed coupon
The date when a bond or other debt must be repaid in full, or the length of time until that date.
Where you use it
Used for bonds, bills and deposits. A bond matures or reaches maturity; investors hold it to maturity or sell earlier. People compare short, medium and long maturities, and the 'yield to maturity' is the total expected return if held until the end.
Examples
The bond has a maturity of ten years and pays interest every six months.
If you hold the bond to maturity, price swings in between do not affect your final return.
Usage note
In everyday English 'maturity' means being grown up. In finance it only means the end date of a debt.
Common phrases
hold to maturity · yield to maturity · maturity date · short maturity · reach maturity
A bond issued by a national government to borrow money, paying interest and returning the principal at maturity. It is often seen as one of the safest investments in its own currency.
Where you use it
Each market has its own names: Treasuries in the US, gilts in the UK, Bunds in Germany. News reports follow government bond yields as a guide to interest rates. Bonds issued abroad in foreign currency are often called Eurobonds.
Examples
Investors moved into government bonds as stock markets fell.
The two-year government bond yield is now higher than the ten-year yield.
Usage note
'Safe' here refers to credit risk in the home currency; government bonds can still lose value when interest rates or inflation rise.
Common phrases
government bond yield · 10-year government bond · issue government bonds · government bond market
A bond issued by a company to raise money. It usually pays a higher yield than a government bond because the risk that the company cannot pay is higher.
Where you use it
Companies issue corporate bonds to fund investment or refinance debt. Investors look at the credit rating and the extra yield over government bonds, called the spread. Bonds are described as investment grade or high yield. In Turkey, short-term company debt is often issued as 'finansman bonosu'.
Examples
The holding company sold 300 million dollars of corporate bonds to international investors.
Corporate bond spreads widened as fears of a recession grew.
Usage note
In Turkish 'özel sektör' means the private sector, but in English 'private bond' is not used; say 'corporate bond'.
Common phrases
issue a corporate bond · corporate bond market · corporate bond spread · investment-grade corporate bond
A grade given by an agency such as S&P, Moody's or Fitch that shows how likely a government or company is to pay its debts on time.
Where you use it
Agencies assign, upgrade, downgrade or affirm a credit rating and give an outlook (positive, stable or negative). Ratings of BBB- or Baa3 and above are investment grade; lower ratings are called high yield or, informally, junk. A downgrade usually raises borrowing costs.
Examples
The agency upgraded the country's credit rating by one notch and kept a positive outlook.
Only bonds with an investment-grade credit rating can be held by this fund.
Usage note
A 'notch' is one step on the rating scale. News reports say a rating was raised or cut 'by one notch'.
Common phrases
upgrade a credit rating · downgrade a credit rating · sovereign credit rating · investment-grade credit rating · rating outlook
Investments such as bonds and bills that pay a set amount of interest on a regular schedule and return the principal at maturity.
Where you use it
The professional name for the bond side of the market: fixed income desks, fixed income funds, fixed income analysts. It is also used as an adjective: fixed-income securities. Some fixed income products, such as floating-rate notes, actually pay variable interest.
Examples
She moved from equity research to the fixed income team last year.
Higher interest rates have made fixed income more attractive to cautious investors.
Usage note
'Fixed income' is a market term. Do not confuse it with a person's fixed salary or pension, which is also called a fixed income in everyday English.
Common phrases
fixed income fund · fixed income market · fixed income securities · fixed income desk
A failure by a borrower, such as a company or government, to make interest or principal payments on its debt on time, or to keep other terms of the loan.
Where you use it
Used as a noun and a verb: a company defaults on its bonds, and investors fear a default. Rating agencies estimate default risk, and markets price it in the yield. A 'sovereign default' is when a country cannot pay. Bondholders then often negotiate a restructuring.
Examples
The developer's default on its dollar bonds shook confidence in the whole sector.
High-yield bonds pay more because their default risk is higher.
Usage note
In software English 'default' means a standard setting (varsayılan). In finance it always means failing to pay.
Common phrases
default on a bond · risk of default · sovereign default · default rate · credit default swap
Short for exchange-traded fund: a fund that holds a basket of assets, often following an index, and whose units are bought and sold on a stock exchange like shares.
Where you use it
Said letter by letter: E-T-F. Investors buy an ETF through a brokerage account during trading hours. People talk about gold ETFs, bond ETFs, sector ETFs and low-cost ETFs, and compare them by expense ratio and tracking error.
Examples
Instead of picking individual stocks, he buys a global equity ETF every month.
Gold ETFs saw strong inflows as investors looked for safety.
Usage note
Many learners say 'an ETF fund'. Since the F already means fund, 'an ETF' is enough.
Common phrases
buy an ETF · gold ETF · bond ETF · ETF inflows · low-cost ETF
A fund that collects money from many investors and uses it to buy a mix of shares, bonds or other assets, managed by professionals and priced once a day.
Where you use it
The American term; British texts often say 'unit trust' or 'fund'. Investors buy units or shares in a mutual fund, and the price is the net asset value calculated after the market closes. Fund documents describe the strategy, fees and risks.
Examples
Most of her retirement savings are in a balanced mutual fund.
Mutual fund orders placed after the cut-off time are executed at the next day's price.
Usage note
'Mutual' here does not mean 'karşılıklı' in the everyday sense; the whole phrase simply means a pooled investment fund.
Common phrases
invest in a mutual fund · mutual fund manager · equity mutual fund · mutual fund units
A fund that aims to match the performance of a market index by holding the same securities in the same proportions, instead of trying to beat it.
Where you use it
Popular for long-term saving because of low fees. People invest in an index fund that tracks the S&P 500, the BIST 30 or a global index. Index funds can be mutual funds or ETFs; the difference from the index's return is called tracking error.
Examples
Instead of choosing stocks, she puts a fixed amount into an index fund every month.
Low-cost index funds have attracted huge inflows over the past decade.
Usage note
An index fund follows the market up and down; it is designed to match the index, not to protect against falls.
Common phrases
invest in an index fund · low-cost index fund · S&P 500 index fund · track an index
The yearly cost of running a fund, shown as a percentage of the money invested in it. It is taken from the fund's assets, so it reduces investors' returns.
Where you use it
Investors compare funds by their expense ratio, for example 0.10 percent for a cheap index ETF versus 1.5 percent for an active fund. Fund documents in Europe use the term 'ongoing charges'. A small difference adds up over many years.
Examples
The ETF has an expense ratio of just 0.07 percent a year.
Over twenty years, a higher expense ratio can cost you a large part of your returns.
Usage note
You do not pay the expense ratio as a separate bill; it is deducted inside the fund, so it is easy to overlook.
Common phrases
low expense ratio · high expense ratio · total expense ratio · compare expense ratios
The value of a fund's assets minus its liabilities, usually divided by the number of units to give the price of one unit of the fund.
Where you use it
Usually shortened to NAV and said letter by letter. Mutual funds are bought and sold at the NAV calculated at the end of the day. ETFs trade at market prices that may be slightly above (a premium) or below (a discount) their net asset value.
Examples
The fund's net asset value per unit rose 2 percent this week.
The closed-end fund trades at a 15 percent discount to its net asset value.
Usage note
For a holding company, analysts also calculate a 'NAV discount': the gap between its market value and the value of the companies it owns.
Common phrases
net asset value per share · NAV per unit · discount to NAV · premium to NAV · daily NAV
A privately managed investment fund for wealthy or professional investors that can use flexible strategies such as short selling, leverage and derivatives.
Where you use it
Hedge funds face fewer rules than ordinary funds and usually charge a management fee plus a performance fee. News reports mention hedge funds betting against a stock or a currency. Strategies include long/short equity, macro and arbitrage.
Examples
Several hedge funds built large short positions in the retailer before its results.
Only qualified investors can invest in this hedge fund.
Usage note
Despite the name, many hedge funds take large risks; the name comes from early funds that hedged their long positions with short ones.
Common phrases
hedge fund manager · macro hedge fund · hedge fund strategy · performance fee
A strategy of buying funds that follow a market index and holding them for a long time, rather than choosing individual stocks or timing the market.
Where you use it
Often compared with active management, where managers try to beat the index. Supporters point to lower costs and the difficulty of beating the market after fees. Reports talk about the growth of passive investing and money flowing from active to passive funds.
Examples
Passive investing now accounts for more than half of US fund assets.
Low fees are the main reason many savers choose passive investing.
Usage note
'Passive' is not negative here; it simply means following an index instead of making frequent decisions.
Common phrases
passive investing strategy · active versus passive · passive fund · rise of passive investing
A person or firm that buys and sells shares and other securities for clients, usually in exchange for a fee called a commission.
Where you use it
Today it usually means a brokerage firm or online platform rather than a person. You open an account with a broker, place orders through a broker and compare brokers by fees. 'Stockbroker' is the older word for a person doing the job.
Examples
I switched to an online broker because the commissions were much lower.
Call your broker before the market opens if you want to change the order.
Usage note
Turkish 'broker' is sometimes used for currency or forex dealers in everyday speech; in English it covers any intermediary for securities.
Common phrases
online broker · discount broker · open an account with a broker · broker fees
An instruction to buy or sell a security immediately at the best price currently available, without setting a price limit.
Where you use it
The simplest order type on any trading platform. You place or send a market order when speed matters more than the exact price. In fast or thin markets the final price can differ from the last price you saw; this difference is called slippage.
Examples
I placed a market order at the open and got filled at 41.20.
Avoid market orders on illiquid stocks; the spread can be very wide.
Usage note
'Order' here means an instruction to trade, not a purchase from a shop. You 'place' or 'enter' an order rather than 'give' one.
Common phrases
place a market order · send a market order · market order to buy · fill a market order
An instruction to buy at or below a chosen price, or to sell at or above a chosen price. The order is only executed if the market reaches that price.
Where you use it
Used when price control matters more than speed. You set a limit price; the order waits in the order book until it is filled, partly filled, cancelled or expires. Many platforms let you choose how long it stays active, for example for the day only.
Examples
I put in a limit order to buy at 95 lira, but the price never came down that far.
Only half of my limit order was filled before the market closed.
Usage note
A limit order guarantees the price but not the execution; a market order guarantees execution but not the price.
Common phrases
place a limit order · limit price · buy limit order · sell limit order · cancel a limit order
An order that automatically sells a security if its price falls to a chosen level, used to limit how much an investor can lose on a position.
Where you use it
Very common among active traders. You set, place, move or tighten a stop-loss order; when the price reaches the level the stop is triggered or hit. In speech it is often just 'a stop' or 'a stop-loss'. Large gaps in price can cause the sale to happen below the stop level.
Examples
I set a stop-loss order 8 percent below my purchase price.
The stock opened sharply lower, so my stop-loss order was executed below the level I had chosen.
Usage note
Turkish traders say 'stop oldum' (my stop was hit). In English say 'I got stopped out' or 'my stop was hit'.
Common phrases
set a stop-loss order · stop-loss level · trigger a stop-loss · tight stop-loss · trailing stop-loss
The difference between the highest price a buyer is offering (the bid) and the lowest price a seller will accept (the ask) for a security at a given moment.
Where you use it
Traders check the bid-ask spread to judge liquidity and trading cost. Spreads widen when markets are nervous or a stock is rarely traded, and narrow or tighten when trading is active. British texts often say 'offer' instead of 'ask'.
Examples
The bid-ask spread on this small company is almost two percent, which makes trading expensive.
Spreads widened sharply in the first minutes of trading, so the bid and ask were far apart.
Usage note
Remember the direction: you buy at the ask (the higher price) and sell at the bid (the lower price).
The number of shares or contracts traded, or their total value, during a given period such as one day.
Where you use it
Shown on every trading screen. Traders watch whether a price move happens on high or low trading volume; heavy volume makes a move more meaningful. News reports say trading volume was thin, light, heavy or above average. Often just 'volume'.
Examples
Trading volume was unusually light ahead of the holiday.
The breakout came on heavy trading volume, which made traders more confident.
Usage note
In English you say 'high volume' or 'heavy volume'; 'big volume' sounds unnatural.
Common phrases
daily trading volume · heavy trading volume · thin trading volume · average volume
An account at a broker that holds your cash and investments and lets you buy and sell shares, bonds, funds and other securities.
Where you use it
You open, fund, transfer or close a brokerage account. Platforms show the account balance, cash available and open positions. In the UK it is often called a trading account or an investment account.
Examples
You need to open a brokerage account before you can apply for the IPO.
I transferred 20,000 lira from my bank to my brokerage account this morning.
Usage note
'Brokerage' is pronounced BROH-ker-ij, with the stress on the first syllable.
Common phrases
open a brokerage account · fund a brokerage account · online brokerage account · account balance
The situation of owning a security because you expect its price to rise. You gain if the price goes up and lose if it falls.
Where you use it
Traders and fund managers say they are long a stock, have a long position in it, or go long. The opposite is a short position. To close a long position you sell the security.
Examples
The fund has a large long position in European banks.
I closed my long position in gold after the price hit my target.
Usage note
'Long' here has nothing to do with time. A long position can be held for only a few minutes.
Common phrases
open a long position · close a long position · go long · be long a stock
Selling borrowed shares in the hope of buying them back later at a lower price and returning them, so that the seller profits from a fall in price.
Where you use it
Used by hedge funds and active traders. You short a stock, go short or take a short position; later you cover the short by buying back. Regulators can restrict or temporarily ban short selling during market stress. Losses can be unlimited because a price can keep rising.
Examples
The regulator temporarily banned short selling on bank shares after the sharp drop.
Short selling is risky because there is no limit to how high a price can go.
Usage note
A 'short squeeze' happens when a rising price forces many short sellers to buy back at the same time, pushing the price even higher.
Common phrases
short selling ban · short a stock · go short · cover a short position · short seller
Buying securities with money partly borrowed from a broker, using the investments in the account as security for the loan.
Where you use it
Investors buy on margin to increase their position size. If prices fall and the account value drops below a required level, the broker issues a margin call and the investor must add cash or the broker may sell positions. Interest is charged on the borrowed amount.
Examples
Margin trading doubled his gains last year but also doubled his losses this spring.
The broker raised its requirements for margin trading after the market became more volatile.
Usage note
Turkish traders often say 'marjin' for collateral in futures. In English, 'margin' is used for both stock and futures accounts.
The use of borrowed money or financial products to control a larger investment than your own money would allow, which increases both possible gains and losses.
Where you use it
Common in trading, derivatives and corporate finance. Platforms offer leverage of, for example, 1:10; traders use or reduce leverage. For companies, it means how much debt they carry. The verb 'leverage' also means 'make good use of' in general business English.
Examples
With ten times leverage, a 5 percent price drop wipes out half of your capital.
Investors are worried about the high leverage of some property developers.
Usage note
American English says LEV-er-ij and British English says LEE-ver-ij. British texts also use 'gearing' for company debt levels.
Common phrases
use leverage · high leverage · reduce leverage · leveraged position · leveraged ETF
Buying and selling securities within the same trading day, trying to profit from small price moves and closing all positions before the market closes.
Where you use it
A day trader watches charts and news all day, uses fast order types and often trades with leverage. Studies of retail accounts show that most day traders lose money over time. Brokers may have special rules or higher margin requirements for day trading.
Examples
He quit his job to try day trading but returned to work after a year of losses.
Day trading requires a fast platform and strict stop-loss discipline.
Usage note
'Intraday' is the adjective used for things that happen within one trading day: an intraday high, intraday volatility.
Common phrases
day trader · day trading strategy · day trading account · intraday
A fee that a broker charges for carrying out a buy or sell order, either a fixed amount per trade or a percentage of the trade's value.
Where you use it
Brokers charge commission; investors pay or negotiate it. Many platforms now advertise commission-free trading, but costs can still appear in the bid-ask spread, currency conversion or other fees. Frequent traders watch commissions closely because they add up.
Examples
My broker charges a commission of 0.1 percent on each trade.
Commission-free apps still make money from spreads and other services.
Usage note
Turkish brokers often quote fees in 'binde' (per thousand). In English this is usually given as a percentage or in basis points: 'binde 1' is 0.1 percent or 10 basis points.
The final step of a trade, when the buyer pays the money and the seller delivers the securities, making the transfer of ownership complete.
Where you use it
Settlement times are written as T+1 or T+2, meaning one or two business days after the trade date (T). Borsa Istanbul and many European markets use T+2 for shares; the US moved to T+1 in 2024. A trade that does not settle on time is a 'failed settlement'.
Examples
You can sell the shares today, but the cash will only be available after settlement on T+2.
The move to shorter settlement cycles reduces risk for both buyers and sellers.
Usage note
In law and everyday English 'settlement' also means an agreement that ends a dispute, or a place where people live. In markets it only means completing a trade.
Common phrases
settlement date · T+2 settlement · settlement cycle · failed settlement · clearing and settlement
The whole system in which shares of companies are bought and sold, including the exchanges, the investors and the prices they create.
Where you use it
Used in news, conversation and reports to talk about share prices in general: the stock market rose, crashed or had a good year. People invest in the stock market or put money into the stock market. Often shortened to 'the market'.
Examples
The stock market has recovered most of its losses from the spring.
My parents never invested in the stock market; they preferred gold and property.
Usage note
'Stock market' is the activity and the prices; 'stock exchange' is the organisation or place where trading happens. Turkish 'borsa' covers both.
Common phrases
invest in the stock market · stock market crash · stock market rally · the stock market closed
An organisation that runs a regulated market where shares and other securities are listed and traded, such as Borsa Istanbul or the New York Stock Exchange.
Where you use it
Used for the institution itself: a company is listed on a stock exchange, goes public on an exchange or is delisted from it. Often shortened to 'the exchange'. Official names include Borsa Istanbul (BIST), the London Stock Exchange (LSE) and the NYSE.
Examples
The company plans to list its shares on the stock exchange next year.
Trading on the stock exchange opens at 10 a.m. local time.
Usage note
Do not say 'stock exchange market' for Turkish 'borsa piyasası'; 'stock market' is enough.
Common phrases
listed on the stock exchange · stock exchange listing · stock exchange rules · London Stock Exchange
A person or organisation that puts money into shares, bonds, funds or other assets in the hope of earning a profit or income over time.
Where you use it
Very common in news and reports. Writers distinguish retail investors (individuals), institutional investors (funds, banks, insurers) and foreign investors. Investors buy, sell, flee, return or pile into an asset; a company holds investor meetings.
Examples
Foreign investors bought a net 300 million dollars of Turkish equities last week.
Retail investors now account for most of the daily trading volume.
Usage note
An investor usually holds assets for months or years; a trader buys and sells more often to profit from short-term price moves.
A number that shows how the prices of a selected group of shares or bonds change over time, used to measure a whole market or sector.
Where you use it
News reports say an index rose, fell, closed at a level or hit a record. Well-known examples are the BIST 100, the S&P 500, the Dow Jones and the FTSE 100. Companies are added to or removed from an index; funds track an index.
Examples
The BIST 100 index closed the day up 1.8 percent at a record level.
The company will join the index at the next quarterly review.
Usage note
The plural is 'indices' in financial writing and 'indexes' in many American texts; both are correct.
Common phrases
stock index · index rose · track an index · benchmark index · index fund
How easily an asset can be bought or sold quickly without a big change in its price. A liquid market has many buyers and sellers.
Where you use it
Traders and fund managers talk about the liquidity of a stock, a bond or a whole market. Liquidity dries up in a crisis and improves when more investors trade. The adjectives are 'liquid' and 'illiquid'. In economic news, 'liquidity' can also mean money supply in the system.
Examples
Large banks offer good liquidity, so you can sell big positions quickly.
Liquidity dried up in corporate bonds during the crisis.
Usage note
Liquidity is about how easily you can trade, not about how much the asset is worth.
Common phrases
high liquidity · low liquidity · liquidity dried up · market liquidity · liquidity risk
A group of companies that do similar business, such as banking, energy or technology, used to compare companies and follow parts of the market.
Where you use it
Analysts cover a sector, fund managers overweight or underweight sectors, and news reports say which sectors gained or lagged. Many exchanges publish sector indices, for example the BIST Banks index. 'Sector rotation' means money moving from one sector to another.
Examples
The energy sector was the best performer this quarter as oil prices climbed.
She covers the retail sector for a regional investment bank.
Usage note
'Industry' and 'sector' are often used loosely as synonyms, but in classification systems a sector is broader and contains several industries.
Common phrases
banking sector · sector index · sector rotation · cover a sector · defensive sector
A standard, usually a market index, against which the performance of a fund, portfolio or investment manager is measured.
Where you use it
Fund documents name a benchmark, and managers try to beat, outperform or track it. Reports say a fund underperformed its benchmark by two percentage points. In bond markets, a 'benchmark bond' is the most traded issue that sets the reference rate.
Examples
The fund beat its benchmark by three percentage points last year.
The yield on the two-year benchmark bond fell after the inflation data.
Usage note
Turkish news says 'gösterge faiz' for the benchmark bond yield. In English this is 'the benchmark yield', not 'the indicator interest'.
Common phrases
beat the benchmark · benchmark index · benchmark bond · relative to the benchmark · underperform the benchmark
The financial markets of countries whose economies are growing and becoming more developed, but which are still seen as riskier than developed markets.
Where you use it
Index providers such as MSCI classify countries as developed, emerging or frontier; Türkiye, Brazil and India are usually in emerging market indices. Reports discuss flows into emerging markets, EM currencies and EM bonds. Often shortened to EM.
Examples
Emerging markets attracted strong inflows after the dollar weakened.
Turkish stocks make up only a small share of the main emerging markets index.
Usage note
Used as an adjective, it is usually singular: 'an emerging market economy', 'emerging market bonds'.
Common phrases
emerging markets fund · emerging market currencies · emerging market bonds · flows into emerging markets
Buying or selling a company's shares using important information that has not yet been made public, which is illegal in most countries.
Where you use it
Regulators investigate insider trading, and people are charged with or convicted of it. Company employees and advisers who know about results, mergers or contracts are called insiders. In Turkey, the Capital Markets Law treats this as 'bilgi suistimali', and the Capital Markets Board (SPK) oversees markets.
Examples
The regulator fined two former managers for insider trading before the merger was announced.
Unusual trading volume a day before the news raised suspicions of insider trading.
Usage note
Legal trading by insiders also exists: directors may buy or sell their company's shares if they follow disclosure rules. News calls these 'insider purchases' or 'insider sales'.
The total market value of a company's shares, calculated by multiplying the share price by the number of shares in issue.
Where you use it
Often shortened to 'market cap'. Analysts use it to compare company size and to group companies into large-cap, mid-cap and small-cap. News reports say a company's market capitalization reached or passed a certain level, such as one trillion dollars.
Examples
With a market capitalization of 2 billion dollars, it is one of the largest companies in the sector.
The index is weighted by market capitalization, so the biggest companies have the most influence.
Usage note
British texts spell it 'market capitalisation'. Market capitalization is not the same as company value in accounting (book value).
Common phrases
market capitalization of · total market capitalization · market cap · large market capitalization
Short for price-to-earnings ratio: a company's share price divided by its earnings per share. It shows how much investors pay for each unit of yearly profit.
Where you use it
The most quoted valuation ratio. Analysts say a stock trades at a P/E ratio of 12, or 'at 12 times earnings'. They compare it with the sector, the market and the company's own history; a trailing P/E uses past earnings and a forward P/E uses forecasts.
Examples
The bank trades at a P/E ratio of only 5, well below its regional peers.
A high P/E ratio often means investors expect strong future growth.
Usage note
Read it as 'P-E ratio'. A company with a loss has no meaningful P/E ratio, so data sites often show it as 'n/a'.
Common phrases
high P/E ratio · low P/E ratio · forward P/E · trailing P/E · trade at a P/E of
A company's net profit for a period divided by the number of its shares. It shows how much profit belongs to each single share.
Where you use it
Usually shortened to EPS and said letter by letter. Analysts forecast it, companies report it every quarter, and news reports say whether earnings per share beat or missed expectations. Diluted EPS also counts shares that could be created later, such as from options.
Examples
Earnings per share rose to 4.20 lira, ahead of the analysts' forecast of 3.90.
The buyback increased earnings per share because profit was shared among fewer shares.
Usage note
'Earnings' is always plural in this sense and means profit, not salary.
Common phrases
earnings per share rose · EPS forecast · beat EPS estimates · diluted earnings per share
The value of a company according to its balance sheet: total assets minus total liabilities. It is the shareholders' equity shown in the accounts.
Where you use it
Analysts compare book value with market value, especially for banks, insurers and holding companies. Book value per share is book value divided by the number of shares. When a stock trades below book value, some investors see it as cheap, others as a sign of problems.
Examples
The bank trades at only 70 percent of its book value.
Book value per share rose because the company kept most of its profits.
Usage note
Book value comes from accounting rules, so it can differ a lot from what the assets would actually sell for. In high-inflation periods, inflation accounting can change it significantly.
Common phrases
book value per share · below book value · tangible book value · net book value
A company's share price divided by its book value per share, or its market capitalization divided by its book value. It compares market value with accounting value.
Where you use it
Often written P/B or P/BV and said 'P-B ratio' or 'price to book'. Especially important for banks and financial companies. A ratio below 1 means the market values the company at less than its book value.
Examples
Turkish banks were trading at a price-to-book ratio below one for most of the year.
A low price-to-book ratio alone does not make a stock a bargain.
Usage note
Analysts usually look at P/B together with return on equity: a company with higher returns on its equity tends to have a higher P/B.
Common phrases
low price-to-book ratio · P/B multiple · trade at a price-to-book of · price-to-book below one
Priced higher than its estimated real value, based on things like profits, growth or assets. It describes an opinion, not a proven fact.
Where you use it
Analysts and commentators say a stock, sector or market looks overvalued, often pointing to a high P/E ratio. 'Expensive' and 'rich' are informal alternatives. The opposite is undervalued; 'fairly valued' sits in between.
Examples
Some analysts think the sector is overvalued after its 80 percent rally.
An overvalued stock can stay expensive for a long time if earnings keep growing.
Usage note
Different valuation methods can give different answers, so writers usually say a stock 'looks' or 'appears' overvalued.
Priced lower than its estimated real value, based on profits, assets, cash flow or growth prospects. Like 'overvalued', it is a judgement.
Where you use it
Value investors search for undervalued stocks; analysts write that a share is undervalued compared with peers or with its own history. People also say a stock 'trades at a discount'. Turkish market reports often use 'iskonto' for this idea.
Examples
The analyst believes the stock is undervalued because the market ignores its new export business.
Undervalued companies can stay cheap for years if nothing changes.
Usage note
A cheap stock is not automatically undervalued; a low price can reflect real problems. Analysts call this a 'value trap'.
Common phrases
undervalued stock · significantly undervalued · look undervalued · trade at a discount
A company's net profit divided by its shareholders' equity, shown as a percentage. It measures how much profit a company makes with the money its owners have invested.
Where you use it
Usually shortened to ROE and said letter by letter. A key ratio for banks and a common way to compare management performance. Analysts look at whether ROE comes from real profitability or from high debt, and compare ROE with the cost of equity.
Examples
The bank's return on equity reached 30 percent, but much of that reflects high inflation.
Companies with a stable return on equity above 15 percent often trade at higher multiples.
Usage note
Do not confuse ROE with ROA (return on assets), which divides profit by total assets instead of equity.
Common phrases
high return on equity · ROE of · improve return on equity · return on equity target
A part of a company's profit that it pays to its shareholders, usually in cash and usually a fixed amount for each share.
Where you use it
Companies declare, pay, raise, cut or suspend dividends. Analysts talk about dividend per share, dividend yield and dividend policy. In the US many companies pay quarterly; in Turkey dividends are usually paid once or twice a year after the general assembly.
Examples
The board proposed a cash dividend of 3 lira per share.
Several banks cut their dividends to protect their capital during the crisis.
Usage note
In English 'dividend' is countable: 'the company paid two dividends this year'.
Common phrases
pay a dividend · declare a dividend · cash dividend · dividend per share · cut the dividend
A company's yearly dividend per share divided by its current share price, shown as a percentage. It shows how much income the share pays compared with its price.
Where you use it
Income investors screen for stocks with a high dividend yield and compare it with bond yields and deposit rates. Because it uses the share price, the yield rises when the price falls. A very high dividend yield can be a warning that the dividend may be cut.
Examples
The utility has a dividend yield of about 6 percent, much higher than the market average.
Its dividend yield rose sharply only because the share price collapsed.
Usage note
A 'high yield' alone usually refers to bonds; say 'high dividend yield' when you mean shares.
Common phrases
high dividend yield · dividend yield of · forward dividend yield · dividend yield stocks
A company's decision to divide each existing share into several new shares. The share price falls in the same proportion, so the total value does not change.
Where you use it
Companies announce a split described as a ratio, such as two-for-one or ten-for-one; shares then begin trading on a split-adjusted basis. The aim is often to make each share cheaper for small investors. A reverse split combines shares into fewer, higher-priced ones.
Examples
After the ten-for-one stock split, each share traded at around 90 dollars instead of 900.
A stock split does not make shareholders richer; it just cuts the pie into more slices.
Usage note
Data sites adjust old prices after a split, so a historical chart will not show a sudden drop on the split date.
A company buying back its own shares from the market, which reduces the number of shares available and returns cash to shareholders in a different way from dividends.
Where you use it
Companies announce, launch, extend or suspend a share buyback programme, usually with a maximum amount or number of shares. Analysts say buybacks support the share price and raise earnings per share. Americans also say 'stock repurchase'.
Examples
The board approved a share buyback of up to 500 million lira.
Some investors prefer a share buyback to a dividend because of how each is taxed.
Usage note
The noun is 'buyback' (one word); the phrasal verb is 'buy back' (two words): 'the company will buy back 5 percent of its shares'.
Common phrases
share buyback programme · announce a share buyback · buy back shares · stock repurchase
A way for a listed company to raise new money by offering existing shareholders the right to buy additional shares, usually at a discount and in proportion to what they already own.
Where you use it
Companies launch a rights issue to pay debt or fund growth. Shareholders can take up their rights, sell them or let them lapse. The share price is adjusted when the rights are separated. American texts often say 'rights offering'.
Examples
The airline launched a rights issue to strengthen its balance sheet.
Shareholders who do not take part in the rights issue will see their stake diluted.
Usage note
Dilution means each existing share represents a smaller part of the company after new shares are created.
Common phrases
launch a rights issue · take up rights · rights issue price · fully subscribed rights issue
An issue of new shares given free to existing shareholders in proportion to their holdings, usually by turning reserves or retained profits into share capital.
Where you use it
British and international term; in the US it is closer to a 'stock dividend'. The company's value does not change, so the share price is adjusted down on the effective date. Bonus issues are very popular news in the Turkish market, where they are often expected to attract investors.
Examples
The company announced a 100 percent bonus issue, giving one new share for every share held.
After the bonus issue, the share price was adjusted from 60 lira to 30 lira.
Usage note
Another British name is 'scrip issue' or 'capitalisation issue'. In English never call it a 'free capital increase'.
Common phrases
announce a bonus issue · bonus shares · bonus issue ratio · scrip issue
The first trading day on which a share is sold without the right to the next dividend. Buyers on or after this date do not receive that payment.
Where you use it
Investors check the ex-dividend date to know when to own the shares. On that morning the share price usually opens lower by about the dividend amount. Traders say a stock 'goes ex-dividend' or 'trades ex-dividend'. The record date and payment date follow it.
Examples
If you buy the shares on the ex-dividend date, you will not get this year's dividend.
The stock fell 3 lira at the open because today is the ex-dividend date.
Usage note
'Ex' comes from Latin and means 'without': ex-dividend means 'without the dividend'.
Common phrases
ex-dividend date · go ex-dividend · trade ex-dividend · record date · payment date
All the investments that one person or organisation owns, such as shares, bonds, funds and cash, seen together as a whole.
Where you use it
Used by private investors and professionals alike. You build, manage, review and rebalance a portfolio; a portfolio manager makes the decisions for a fund. People talk about the weight of each asset in the portfolio and the portfolio's overall return and risk.
Examples
Technology stocks now make up almost 40 percent of her portfolio.
We review the portfolio every quarter and adjust it if needed.
Usage note
Pronounced port-FOH-lee-oh, with stress on the second syllable. The plural is 'portfolios'.
The gain or loss on an investment over a period, including price changes and any income such as dividends or interest, usually shown as a percentage.
Where you use it
One of the most important words in investing. Investors earn, generate or expect a return; reports compare annual returns, total returns and returns after fees and inflation. 'Returns' in the plural is common when talking about results over time.
Examples
The fund delivered a return of 18 percent last year, slightly above its benchmark.
Higher expected returns usually come with higher risk.
Usage note
Do not translate 'getiri' as 'income' in this sense; 'income' means only the regular payments, while 'return' includes price changes too.
Common phrases
annual return · total return · real return · expected return · rate of return
Spreading money across different investments, sectors, countries or asset classes so that a loss in one of them has a smaller effect on the whole portfolio.
Where you use it
A key idea in portfolio management, summed up by the saying 'don't put all your eggs in one basket'. Advisers and fund documents talk about the benefits of diversification and a lack of diversification. The verb is 'diversify' and the adjective is 'diversified'.
Examples
Holding only bank stocks gives you very little diversification.
Global diversification reduced the impact of the local sell-off on our fund.
Usage note
Diversification reduces the risk of a single investment; it cannot remove the risk of the whole market falling.
Common phrases
benefits of diversification · lack of diversification · international diversification · achieve diversification
How much and how quickly the price of an investment or a market moves up and down. High volatility means large, frequent price swings.
Where you use it
Used in news, risk reports and fund documents. Volatility rises, spikes or calms down; investors fear, tolerate or manage volatility. It is often measured by standard deviation, and the VIX index is called the 'fear gauge'. The adjective is 'volatile'.
Examples
Volatility spiked after the surprise interest rate decision.
Small-cap stocks usually show higher volatility than large companies.
Usage note
Volatility is not the same as loss: a volatile stock can rise sharply as well as fall.
The profit you make when you sell an investment for more than you paid for it. If you sell for less, the result is a capital loss.
Where you use it
Used in investment reports and especially in tax rules. A gain is realised when you sell and unrealised (on paper) while you still hold the asset. Investors talk about capital gains versus income from dividends and interest; many countries tax them differently.
Examples
She made a capital gain of 40,000 lira when she sold the shares.
Most of the fund's return came from capital gains rather than dividends.
Usage note
In tax contexts the plural 'capital gains' is very common: 'capital gains tax', not 'capital gain tax'.
Common phrases
realise a capital gain · capital gains tax · unrealised capital gain · capital loss
The way an investor divides money between different types of assets, such as shares, bonds, gold and cash, based on goals, time and attitude to risk.
Where you use it
A central topic in financial planning and fund management. Advisers recommend, review or change an asset allocation; fund factsheets show it as a pie chart. People describe it in ratios, for example a 60/40 portfolio of shares and bonds.
Examples
Our asset allocation is 50 percent equities, 30 percent bonds and 20 percent gold.
Studies suggest asset allocation explains much of the difference in long-term portfolio results.
Usage note
'Allocation' is often confused with 'location'. Allocation means sharing out, not placing somewhere.
Common phrases
strategic asset allocation · change the asset allocation · asset allocation model · target asset allocation
How much loss or how big a swing in value an investor is willing and able to accept in exchange for the chance of higher returns.
Where you use it
Advisers and brokers assess a client's risk tolerance with questionnaires before offering products. People describe it as low, moderate or high. It depends on age, income, goals and personality. In Turkey, brokers use suitability tests (uygunluk testi) for this purpose.
Examples
A portfolio of 90 percent stocks only makes sense for someone with a high risk tolerance.
Her risk tolerance fell after she started saving for a house.
Usage note
'Risk appetite' is close in meaning but is used more for markets as a whole: 'global risk appetite improved'.
To buy and sell assets in a portfolio so that it returns to the planned mix, for example after shares have risen and now take up too large a part.
Where you use it
Investors rebalance a portfolio on a schedule, such as once a year, or when weights drift too far from targets. The noun is 'rebalancing'. Index funds also rebalance when an index changes its members, which can cause large trades on that day.
Examples
We rebalance the portfolio every January to bring it back to 60/40.
Index rebalancing caused unusually high volume in the final minutes of trading.
Usage note
The stress is on the second syllable when it is a verb: re-BAL-ance.
Common phrases
rebalance a portfolio · annual rebalancing · index rebalancing · rebalance back to target
Investing the same amount of money at regular intervals, whatever the price, so that you buy more units when prices are low and fewer when they are high.
Where you use it
A common approach for monthly saving plans and pension contributions. It reduces the risk of investing everything at a bad moment, although a single lump sum can do better when markets rise steadily. British texts sometimes call it 'pound-cost averaging'.
Examples
Dollar-cost averaging helped me keep investing during the bear market.
With dollar-cost averaging, she puts 5,000 lira into the same index fund on the first day of every month.
Usage note
Despite the name, it has nothing to do with US dollars; it works in any currency.
Common phrases
use dollar-cost averaging · dollar-cost averaging strategy · regular investment plan · lump sum
A group of investments with similar features that tend to behave in similar ways, such as shares, bonds, cash, real estate or commodities.
Where you use it
Used in asset allocation and market reviews: which asset class performed best this year, how money moved between asset classes. Gold, private equity and crypto assets are also discussed as asset classes. Fund managers talk about multi-asset funds.
Examples
Gold was the best-performing asset class in our portfolio last year.
Bonds and shares are different asset classes, so they often react differently to the same news.
Usage note
Do not say 'asset type' in professional texts; 'asset class' is the standard term.
Common phrases
asset class returns · across asset classes · alternative asset class · multi-asset
A way of judging an investment by studying the company's business, financial statements, management, industry and the wider economy to estimate its real value.
Where you use it
Used by analysts, fund managers and long-term investors. They read annual reports, build models, look at ratios such as P/E and ROE, and compare the result with the share price. It is usually contrasted with technical analysis.
Examples
Our fundamental analysis suggests the company's profits will keep growing for several years.
He relies on fundamental analysis and ignores short-term price charts.
Usage note
Analysts often say 'the fundamentals' (plural) for a company's basic financial health: 'the fundamentals are strong'.
Common phrases
do fundamental analysis · based on fundamental analysis · fundamental analyst · company fundamentals
A way of studying past prices and trading volume on charts to identify trends and patterns that traders use to time their buying and selling.
Where you use it
Popular with short-term traders. Technical analysts, or chartists, talk about trends, support and resistance, moving averages and indicators such as RSI. Reports say a stock 'looks strong on technical grounds' or that 'technicals' point lower.
Examples
Technical analysis shows the stock is close to a strong resistance level.
Many day traders combine technical analysis with news alerts.
Usage note
Technical analysis describes patterns; it cannot guarantee what prices will do next.
Common phrases
use technical analysis · technical indicator · technical analyst · on technical grounds
A company's official announcement of its revenue, profit and other financial results for a quarter or a year, often with comments on what it expects next.
Where you use it
Investors wait for the earnings report, analysts compare it with forecasts, and the share price often moves sharply after it. Companies release or publish results and hold an earnings call with analysts. The weeks when most companies report are called earnings season.
Examples
The shares fell 7 percent after a weak earnings report.
The company will publish its third-quarter earnings report after the market closes on Thursday.
Usage note
Turkish investors say 'bilanço' for the whole set of results. In English the balance sheet is only one statement; say 'earnings' or 'results' for the announcement.
Common phrases
quarterly earnings report · release an earnings report · earnings call · earnings season · strong earnings report
The average price of a security over a fixed number of recent days, recalculated every day, used to smooth out short-term swings and show the trend.
Where you use it
One of the most used tools in technical analysis. Traders watch the 50-day and 200-day moving averages; a price that breaks above or below them is seen as a signal. When the 50-day crosses above the 200-day, chartists call it a golden cross; the opposite is a death cross.
Examples
The stock is trading below its 200-day moving average for the first time this year.
Many traders use the 50-day moving average as a guide to the medium-term trend.
Usage note
Often shortened to MA; SMA is a simple moving average and EMA is an exponential one that gives more weight to recent prices.
Common phrases
50-day moving average · 200-day moving average · break above the moving average · exponential moving average
A price level where a falling stock has often stopped and turned back up in the past, because buyers tend to step in at that price.
Where you use it
Technical analysts identify, test and watch support levels. A price can bounce off support, hold support or break below it. When support breaks, chartists often expect further falls. In reports and talk it is often just 'support'.
Examples
The index is testing an important support level at 9,500 points.
If the stock breaks this support level, the next one is around 42 lira.
Usage note
Once a support level is broken, it often starts acting as resistance, and the opposite is also true.
Common phrases
key support level · test support · break support · hold support · bounce off support
A price level where a rising stock has often stopped and turned back down in the past, because sellers tend to appear at that price.
Where you use it
The opposite of support. A price meets, tests or fails at resistance; if it breaks through or clears resistance on strong volume, traders call it a breakout. Previous highs and round numbers often act as resistance.
Examples
Gold failed again at the resistance level of 2,500 dollars an ounce.
A close above this resistance level could open the way to new highs.
Usage note
Pronounced ri-ZIS-tunce, with the stress on the second syllable.
Common phrases
strong resistance level · break through resistance · test resistance · fail at resistance
A price chart in which each period is shown as a 'candle': the body shows the opening and closing prices, and thin lines show the highest and lowest prices.
Where you use it
The default chart on most trading platforms. Traders read candles and patterns with names such as doji, hammer and engulfing. A green or white candle usually means the close was above the open; a red or black one means it was below. The thin lines are called wicks or shadows.
Examples
On the daily candlestick chart, the stock formed a long red candle after the news.
I prefer a candlestick chart because it shows the open, high, low and close at a glance.
Usage note
Candlestick charts were first developed by rice traders in Japan, which is why many pattern names are Japanese.
Common phrases
daily candlestick chart · candlestick pattern · red candle · green candle
A financial contract whose value depends on the price of something else, such as a share, an index, a currency, an interest rate or a commodity.
Where you use it
Used for futures, options, forwards and swaps. The asset a derivative is based on is called the underlying. Companies and funds use derivatives to hedge risks; traders also use them to speculate with leverage. Derivatives trade on exchanges or over the counter (OTC).
Examples
The exporter uses currency derivatives to protect itself against swings in the lira.
Derivatives can magnify losses quickly if they are used with high leverage.
Usage note
In everyday English 'derivative' can mean 'not original'. In mathematics it means 'türev' too, so Turkish speakers usually find the financial meaning easy to remember.
A contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a fixed price before or on a certain date, in exchange for a payment called the premium.
Where you use it
Traders buy or write (sell) options, exercise them or let them expire. Key words are strike price, expiry date and premium. The two basic types are call options and put options. American-style options can be exercised any time before expiry; European-style only at expiry.
Examples
The option expired worthless because the share price never reached the strike price.
Buying an option limits your loss to the premium you paid.
Usage note
In employment contracts 'stock options' are rights given to employees to buy company shares; they are related but not the same as exchange-traded options.
Common phrases
buy an option · exercise an option · option premium · strike price · option expires
A standard contract traded on an exchange that obliges the buyer and seller to trade an asset at a fixed price on a future date. Both sides must keep a margin deposit.
Where you use it
Used on indices, currencies, commodities and interest rates. Traders go long or short futures, roll them over before expiry, and receive or pay daily gains and losses through margin. People usually just say 'futures': index futures, oil futures. Futures often trade before the stock market opens.
Examples
Index futures contracts pointed to a weak open before the stock market started trading.
The airline bought fuel futures contracts to lock in prices for next year.
Usage note
Unlike an option, a futures contract is an obligation for both sides, not a right.
Common phrases
index futures · oil futures · futures market · roll over futures · futures contract expiry
An option that gives the buyer the right to buy an asset at a fixed price, the strike price, until or on a set date. Its value usually rises when the asset's price rises.
Where you use it
Traders buy calls when they expect a price to rise and sell or write calls to earn the premium. A call is 'in the money' when the market price is above the strike and 'out of the money' when it is below. In speech people simply say 'calls'.
Examples
He bought call options with a strike price of 50 because he expected strong results.
The call option became valuable when the index rose well above the strike.
Usage note
A 'covered call' means selling a call on shares you already own; it earns a premium but limits your gain if the price rises sharply.
Common phrases
buy a call option · sell call options · call option premium · in the money · covered call
An option that gives the buyer the right to sell an asset at a fixed price, the strike price, until or on a set date. Its value usually rises when the asset's price falls.
Where you use it
Investors buy puts to protect a portfolio against a fall, in the same way as buying insurance, or to bet on a decline. Market reports watch the put-call ratio as a sign of fear. In speech people say 'puts': 'demand for puts jumped'.
Examples
The fund bought put options on the index to protect itself before the election.
If the stock stays above the strike, the put option will expire worthless.
Usage note
Remember: a call lets you 'call' the asset to you (buy); a put lets you 'put' it to someone else (sell).
Common phrases
buy a put option · protective put · put option premium · put-call ratio
To reduce the risk of losing money on an investment or business exposure by taking an opposite position, often with derivatives such as futures or options.
Where you use it
Used as a verb and a noun. Companies hedge currency or commodity risk; investors hedge a portfolio or hedge against inflation. 'Gold is a hedge against inflation' is a common phrase. A hedge costs money and limits gains as well as losses.
Examples
The exporter hedges about half of its dollar income with forward contracts.
Many investors hold gold to hedge against currency weakness.
Usage note
The word comes from a hedge, a line of bushes around a garden that protects it. The noun form for the activity is 'hedging'.
Common phrases
hedge against inflation · hedge currency risk · hedge a position · natural hedge · hedging strategy
A long period in which prices in a market rise and investors are generally confident. A common rule of thumb is a 20 percent rise from a recent low.
Where you use it
Common in market news and analyst comments. A bull market begins, continues, ends or runs out of steam; commentators ask how long the bull market can last. 'Bull run' is a more informal phrase for the same idea.
Examples
The bull market that began in March has now lasted more than two years.
In a bull market, almost every stock seems to go up.
Usage note
The image comes from how a bull attacks: it pushes its horns upwards.
Common phrases
bull market rally · long bull market · enter a bull market · bull run
A long period in which prices in a market fall and investors are generally pessimistic. It is often defined as a fall of 20 percent or more from a recent high.
Where you use it
Used in news and analysis, especially when an index crosses the 20 percent threshold: 'the index entered bear market territory'. Commentators discuss when the bear market will end and whether a rise is only a bear market rally.
Examples
The index officially entered a bear market after falling 21 percent from its peak.
Many investors who sold during the bear market missed the recovery.
Usage note
The image comes from how a bear attacks: it swipes its paws downwards.
Common phrases
enter a bear market · bear market territory · bear market rally · prolonged bear market
Expecting prices to rise, or showing signs that prices will rise. It can describe an investor, an opinion, a chart or the general mood.
Where you use it
Very common in analyst comments and market chat. You are bullish on a stock, a sector or a market; a chart pattern can be a bullish signal. Writers also say someone 'turned bullish' when they changed their view.
Examples
Most analysts are bullish on the banking sector for the next six months.
The strong close above resistance is a bullish sign.
Usage note
Use 'on' after it: 'bullish on gold', not 'bullish about gold' (although 'about' is also heard).
Common phrases
bullish on · bullish signal · turn bullish · bullish sentiment · bullish outlook
Expecting prices to fall, or showing signs that prices will fall. It can describe an investor, a forecast, a chart pattern or the mood of the market.
Where you use it
The opposite of bullish and used in the same patterns: bearish on a stock, a bearish signal, a bearish outlook. Analysts may 'turn bearish' after bad data. A bearish investor might reduce positions, hedge or sell short.
Examples
Several strategists turned bearish on emerging markets after the latest inflation data.
A close below the 200-day average would be a bearish signal.
Usage note
Do not confuse 'bearish' with 'bear' meaning 'carry' (to bear a cost). Only the animal image is used here.
Common phrases
bearish on · bearish signal · turn bearish · bearish outlook · bearish bet
A period of strong and fairly quick rises in prices, either in one stock or in the whole market, often after a fall or a quiet period.
Where you use it
A favourite word of market news. A rally starts, gathers pace, fades or stalls; it can be broad (most stocks rise) or narrow (led by a few names). It is also a verb: 'stocks rallied after the announcement'. A 'relief rally' follows good news after a period of worry.
Examples
Bank shares led a broad rally after the central bank's decision.
Oil stocks rallied 5 percent as crude prices jumped.
Usage note
In everyday English a rally is also a political gathering or a car race. In market news it always means rising prices.
A fall in prices of usually at least 10 percent from a recent high, seen as a pause or adjustment after a strong rise rather than the start of a long decline.
Where you use it
News reports say a market entered correction territory or that a stock is in a correction. Analysts may describe a fall as 'a healthy correction'. If the fall reaches 20 percent, it is usually called a bear market instead.
Examples
After a 40 percent rise this year, a correction was not surprising.
The technology index is now in correction territory, down 11 percent from its peak.
Usage note
In this sense 'correction' does not mean fixing a mistake; it means prices coming down after rising too fast.
A sudden period in which many investors sell at the same time, causing prices of a stock, sector or whole market to fall quickly.
Where you use it
Used in news headlines: a sell-off hits, deepens, spreads or eases. It can be triggered by bad data, a profit warning or global events. The phrasal verb is 'sell off': 'investors sold off tech shares'. The noun has a hyphen; the verb does not.
Examples
The sell-off spread from technology to almost every sector by midday.
Investors started to sell off airline shares after fuel prices jumped.
Usage note
A sell-off describes a quick event that can last hours or days; a bear market is a much longer trend.
Common phrases
sharp sell-off · market sell-off · trigger a sell-off · the sell-off deepened · sell off shares
The highest price or level that a stock, index or other asset has ever reached since trading in it began.
Where you use it
Common in headlines: an index hits, reaches, sets or closes at an all-time high. Traders shorten it to ATH. The opposite is an all-time low. Also used as an adjective: an all-time-high close. In high-inflation economies, records in local currency are often compared with dollar terms.
Examples
The index closed at an all-time high for the third day in a row.
In dollar terms, the market is still far below its all-time high.
Usage note
'Record high' means the same and is very common in news. Do not say 'all times high'.
Common phrases
hit an all-time high · record high · close at an all-time high · all-time low
The general mood or attitude of investors towards a market or asset, such as optimism or fear, which can push prices in one direction.
Where you use it
News reports say market sentiment improved, turned negative, soured or was fragile. It is measured with surveys, volatility indices and flows. Writers also talk about 'risk appetite' and 'risk-on' or 'risk-off' moods.
Examples
Market sentiment improved after the inflation figures came in lower than expected.
Weak global market sentiment pushed investors towards gold and government bonds.
Usage note
'Sentiment' in English is not Turkish 'sentimental' (duygusal); in markets it simply means the overall mood.
An analyst's estimate of the price a stock could reach within a certain period, usually 12 months, based on their valuation of the company.
Where you use it
Analysts set, raise, cut or keep a price target, usually together with a rating such as buy, hold or sell. News reports compare it with the current price to show the implied upside or downside. Targets are opinions and are often revised.
Examples
The bank raised its price target on the stock from 120 to 150 lira.
The average analyst price target implies about 20 percent upside from today's level.
Usage note
Turkish speakers sometimes say 'target price', which is also correct, but 'price target' is more common in news.
Common phrases
raise a price target · cut a price target · 12-month price target · consensus price target
Selling investments after their price has risen in order to turn paper gains into real cash, which can cause a short fall in prices.
Where you use it
A favourite explanation in market reports for a small fall after a strong run: 'stocks slipped on profit-taking'. The verb phrase is 'take profits'. It suggests a temporary pause rather than a change in outlook.
Examples
The index fell 1 percent on profit-taking after hitting a record yesterday.
Some profit-taking is normal after such a fast rally.
Usage note
Write 'profit-taking' with a hyphen as a noun. 'Taking profit' without the hyphen describes the action of one investor.
Common phrases
profit-taking pressure · slip on profit-taking · take profits · wave of profit-taking
Ten questions from this glossary. Pick the right meaning for each term and see your score.
How to learn investing & the stock market vocabulary
Read real texts from the field: the English versions of company announcements on Borsa Istanbul's Public Disclosure Platform (KAP), annual reports of listed companies, fund factsheets and daily market reports. Compare them with the Turkish versions to see how each term is translated.
Learn terms in opposite pairs: bull and bear, bid and ask, long and short, support and resistance, overvalued and undervalued. Market news constantly uses them side by side.
Pay attention to the verbs of market news: stocks rise, climb, gain, surge and rally; they also fall, slip, drop, tumble and plunge. Each verb shows how big the move was.
Learn how abbreviations are said: ETF, IPO, EPS and NAV are spelled letter by letter, while the P/E ratio is read as 'P-E ratio' and ROE as 'R-O-E'.
Notice the difference between American and British usage: Americans usually say stocks and stockholders, while British texts prefer shares and shareholders; a rights issue in the UK is often a rights offering in the US.
Frequently asked questions
What is the difference between a stock and a share?
In everyday use they mean almost the same thing: a piece of ownership in a company. 'Share' is the unit you count ('I bought 200 shares'), while 'stock' often refers to ownership in general or to a company's shares as an investment ('tech stocks'). Americans use 'stock' more, the British prefer 'shares'. In Turkish both are usually 'hisse' or 'pay'.
What do 'bull' and 'bear' mean in the stock market?
A bull market is a long period of rising prices and a bear market is a long period of falling prices. A common rule of thumb is a 20 percent rise from a recent low or a 20 percent fall from a recent high. 'Bullish' describes someone who expects prices to rise and 'bearish' someone who expects them to fall. Turkish uses 'boğa piyasası' and 'ayı piyasası' in the same way.
Why do bond prices fall when interest rates rise?
An existing bond pays a fixed coupon. When new bonds start paying higher rates, the older bond becomes less attractive, so its price drops until its yield matches the market. This is why news reports say that bond prices and yields move in opposite directions.
Is an ETF the same as a mutual fund?
Both pool money from many investors into a basket of assets, but an ETF is traded on a stock exchange throughout the day like a share, while a classic mutual fund is bought and sold once a day at its net asset value. In Turkey, ETFs are called 'borsa yatırım fonu' (BYF), and mutual funds are mostly traded through the TEFAS platform.
Do Turkish investors use the English terms or the Turkish ones?
Both. Traders and analysts often keep English words such as stop-loss, hedge, short, rally, spread and target in everyday talk. Official documents, KAP announcements and regulatory texts use Turkish terms such as 'zarar durdur emri', 'açığa satış', 'halka arz' and 'bedelsiz sermaye artırımı'. Knowing both helps you follow Turkish and international sources at the same time.
