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Definition of Momentum Investing Momentum investing is an investment strategy where investors buy assets that have shown strong recent performance and sell those that have shown weak performance. It’s based on the idea that rising stocks often keep rising for a time, and falling stocks often keep falling, because of market psychology and herd behavior.

Definition of Dow Jones The Dow Jones Industrial Average (DJIA)—often just called “the Dow”—is one of the most widely recognized stock market indexes in the world. It tracks the performance of 30 large, publicly owned companies based in the United States. These companies span multiple industries, making the Dow a quick snapshot of how the stock market—and in many ways, the economy itself—is doing.

Definition of Block Trade A block trade is a very large order to buy or sell a security—typically 10,000+ shares of stock (excluding penny stocks) or $200,000+ in bonds—executed privately or off the open exchange to avoid moving the market price. These trades are usually arranged through an investment bank or a broker’s “block desk.”

Definition of Reverse Stock Split A reverse stock split is when a company reduces the number of its outstanding shares while increasing the share price proportionally. Think of it like trading in 10 dimes for 1 dollar bill — you still have the same amount of money, but in fewer pieces.

Definition of Common Stock Common stock represents ownership in a company. When you buy common stock, you’re essentially buying a small slice of that business. As a shareholder, you’re entitled to a portion of the company’s profits (usually in the form of dividends if paid), and you have voting rights to help elect the board of directors or vote on major company decisions. Think of common stock as your seat at the table—albeit maybe at the back if you only own a few shares.

Definition of a Parent Company A parent company is a corporation that owns enough voting stock in another company to control its policies and management. The company it controls is called a subsidiary. Think of a parent company as the “boss” in the business family tree. While it may not run the day-to-day operations of its subsidiaries, it has the power to call the shots when it matters—like choosing leadership, approving budgets, or selling the business.

A C Corporation (or C Corp) is a type of business structure in the United States that’s legally separate from its owners (called shareholders). This means the corporation itself can own property, enter contracts, sue or be sued, and—here’s the kicker—pay its own taxes. Unlike sole proprietorships or partnerships where profits pass through directly to the owners, a C Corp files its own tax return and pays corporate income tax on profits. In plain English? A C Corporation is

An S Corporation—or S corp for short—is a special type of corporation that allows business owners to enjoy the legal protections of a corporation while avoiding the dreaded “double taxation” that typically comes with one.

A corporation is a legal business entity that’s separate from its owners. It can own property, enter into contracts, sue or be sued, and even pay its own taxes—basically, it’s treated like its own “person” in the eyes of the law. Corporations are created when a group of individuals (or even just one person) files the proper paperwork with their state government, typically called “articles of incorporation.”

Consumer Price Index tracks the average change over time in the prices paid by urban consumers for a basket of goods and services.

Market Capitalization is the total value of a company's shares of stock; it's an indicator of a company's size, and investors watch it.

A dividend is a portion of a company's earnings, paid out to its shareholders.

Mutual funds are created by multiple investors investing in a portfolio of stocks, bonds, and other securities.

A stock represents ownership in a company. When you buy a stock, you're essentially buying a tiny piece of that company, known as a 'share'.