Investing Glossary
Simplified explanations of the most important financial and investing terms.
A
Asset Allocation(توزيع الأصول)
An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.
B
Bear Market(سوق هابط (السوق الدببي))
A condition in which securities prices fall and widespread pessimism causes the stock market's downward spiral to be self-sustaining. Typically defined by a 20% drop from recent highs.
Bull Market(سوق صاعد (السوق الثوري))
The condition of a financial market in which prices are rising or are expected to rise.
C
Compound Interest(الفائدة المركبة)
The addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
D
DCA (Dollar Cost Averaging)(متوسط التكلفة بالدولار (DCA))
An investment strategy in which an investor divides up the total amount to be invested across periodic purchases in an effort to reduce the impact of volatility.
Dividend(توزيعات الأرباح)
A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders.
Dividend Yield(عائد التوزيعات)
A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.
E
ETF (Exchange Traded Fund)(صندوق مؤشرات متداول (ETF))
A type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other asset.
Expense Ratio(نسبة المصروفات)
The annual fee that all funds or ETFs charge their shareholders. It expresses the percentage of assets deducted each fiscal year for fund expenses.
I
Index Fund(صندوق المؤشر)
A type of mutual fund or ETF with a portfolio constructed to match or track the components of a financial market index, such as the S&P 500.
M
Market Cap(القيمة السوقية)
The total value of a company's shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares.
P
P/E Ratio (Price-to-Earnings)(مكرر الربحية (P/E))
The ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS).
R
ROIC (Return on Invested Capital)(العائد على رأس المال المستثمر)
A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments.
T
Total Return(العائد الإجمالي)
The actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends, and distributions realized over a given period of time.
V
Volatility(التقلب (التذبذب))
A statistical measure of the dispersion of returns for a given security or market index. Higher volatility means riskier.