ADR (American Depositary Receipt): An ADR is a certificate issued by a U.S. bank that represents shares of a foreign company, allowing them to trade in U.S. markets. Example: Alibaba Group trades on the New York Stock Exchange through ADRs.
ISIN (International Securities Identification Number): The ISIN is a unique 12-character code used to identify securities in financial markets. Example: The ISIN for Apple shares is US0378331005.
FX (Foreign Exchange): FX refers to the currency market where different currencies are exchanged. Example: An FX trader may buy euros and sell dollars to profit from exchange rate fluctuations.
OTC (Over the Counter): The term OTC refers to transactions that do not take place in organized markets but are conducted directly between parties. Example: Many financial derivatives are traded in the OTC market.
CAGR (Compound Annual Growth Rate): CAGR measures the compound annual growth rate of an investment over a given period. Example: If a stock rose from $100 to $150 in three years, its CAGR would be 14.47%.
TSR (Total Shareholder Return): TSR measures the total return for shareholders, including dividends and stock price appreciation. Example: If a stock rises 8% and pays a 2% dividend, the TSR is 10%.
YoY (Year over Year): YoY compares metrics from one year to the previous year. Example: A company’s revenue grew 12% YoY.
QoQ (Quarter over Quarter): QoQ compares metrics between consecutive quarters.
YTD (Year to Date): YTD measures the performance of a variable from the beginning of the year to the current date. Example: The S&P 500 index rose 10% YTD by June.
MtD (Month to Date): Evaluates performance from the beginning of the month to the current date. Example: An asset with 5% MtD has gained 5% so far this month.
WtD (Week to Date): WtD does the same for the week.
CEO (Chief Executive Officer): The CEO is the executive director of a company. Example: Tim Cook is the CEO of Apple.
CFO (Chief Financial Officer): The CFO is the financial director of a company. Example: The CFO oversees capital management and financial planning.
COO (Chief Operating Officer): The COO is the operations director, responsible for the daily management of the company.
SaaS (Software as a Service): A cloud-based software business model. Example: Salesforce is a SaaS company.
B2B (Business to Business): Sales between companies.
B2C (Business to Consumer): Direct sales to consumers.
B2G (Business to Government): Companies selling to governments.
P2B (Peer to Business): Individuals financing businesses.
ARPU (Average Revenue Per User): Average revenue per user. Used in technology and telecommunications companies to evaluate customer profitability.
AUM (Assets Under Management): The total amount of money managed by an investment fund or financial institution.
IRR (Internal Rate of Return): Internal rate of return. Measures the profitability of an investment project.
CDS (Credit Default Swap): A financial derivative that acts as insurance against debt default.
CFD (Contract for Difference): A financial derivative that allows speculation on assets without owning them.
