Basic Terms and Acronyms

• ROI (Return on Investment) : Return on investment. A key measure for assessing the profitability of an investment.

• CAGR (Compound Annual Growth Rate) : Compound annual growth rate, used to measure the average growth of an investment over several years.

• IRR (Internal Rate of Return): Internal rate of return. It shows the expected average annual return of an investment.

• DCF (Discounted Cash Flow): Discounted cash flow. A method for evaluating the value of an investment by considering projected future income.

Portfolio Management Related Concepts

• ETF (Exchange Traded Fund) : An exchange-traded fund that groups multiple assets and tracks an index. It allows for automatic diversification with lower fees.

• P/E Ratio (Price to Earnings Ratio) : Price-to-earnings ratio. It measures the value of a company by dividing its stock price by its earnings per share.

• Sharpe Ratio : An indicator that measures the return of a portfolio relative to its risk. A higher ratio is preferable.

• Beta : A measure of the volatility of an asset compared to the overall market. A beta greater than 1 indicates a higher risk.

The Different Types of Assets and Their Acronyms

• REIT (Real Estate Investment Trust): A real estate investment trust allowing investment in commercial or residential real estate without directly purchasing properties.

• MBS (Mortgage-Backed Securities) : Mortgage-backed securities. Often used to diversify a portfolio.

• IPO (Initial Public Offering) : Initial public offering. When a private company sells its shares to the public for the first time.

• SPAC (Special Purpose Acquisition Company) : A company created to raise funds in the stock market and acquire another company.

Returns, Performance, and Technical Analysis

• EPS (Earnings Per Share): Earnings per share. An indicator of a company's profitability.

• P/B Ratio (Price to Book Ratio) : An indicator comparing a company's market value to its book value.

• RSI (Relative Strength Index) : A technical analysis indicator used to evaluate whether an asset is overbought or oversold.

• MACD (Moving Average Convergence Divergence) : A trend indicator used in technical analysis to identify buying or selling opportunities.

Conclusion

This technical glossary covers the acronyms and advanced terms you will encounter in your financial analyses. Learning these concepts will help you better understand your investments and optimize your decisions.