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Definition of FTSE 100 When you hear people in the financial world talk about “the FTSE,” they’re usually referring to the FTSE 100 Index(pronounced “Footsie 100”). It’s the stock market index of the 100 largest companies listed on the London Stock Exchange (LSE) by market capitalization.

Definition of Russell 2000 Index The Russell 2000 is a stock market index that tracks the performance of about 2,000 smaller publicly traded companies in the U.S. It’s considered the best measure of how small-cap stocks (companies with relatively small market values) are doing. While the S&P 500 gets all the headlines for tracking America’s biggest corporations, the Russell 2000 gives you a peek into the health of the smaller players that make up the backbone of the U.S. eco

Definition of Nasdaq The Nasdaq (short for the National Association of Securities Dealers Automated Quotations) is both a stock exchange and a stock market index. It’s known for being the world’s first electronic exchange, launched in 1971, and is home to many of the largest technology and growth companies, including Apple, Microsoft, Amazon, and Tesla.

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 Market Sentiment Market sentiment is the overall mood of investors about the market (or a specific stock, sector, or asset). Are people feeling optimistic (bullish), pessimistic (bearish), or just…meh (neutral)? That collective mood often shows up in prices, trading volume, and volatility.

Definition of Market Depth Market depth shows how much real buying and selling interest exists at different prices for a stock, ETF, or crypto. It’s the stack of limit orders waiting in line—how many shares are bid below the current price and how many are offered above it. Deeper markets = more shares at many price levels = easier to trade without moving the price.

Quick Definition of Liquidity Liquidity is how fast you can turn something you own into spendable cash without losing much value. Cash in your checking account? Ultra-liquid. A rare trumpet from 1930? Cool… but not liquid.

Definition of Bid-Ask Spread (Plain English) The bid-ask spread is the tiny gap between what buyers are willing to pay (the bid) and what sellers are asking to receive (the ask) for a stock, ETF, crypto, or any traded asset. That gap is a built-in cost of doing business—like a small toll to cross the bridge between “I want it” and “I own it.”

Definition of High-Frequency Trading High-Frequency Trading (HFT) is algorithm-driven, ultra-fast trading that uses powerful computers and direct exchange connections to place thousands of orders in milliseconds. Think “race cars on Wall Street”—built for speed, tuned for tiny price edges.

Definition of Dark Pool A dark pool is a private trading venue where large investors (think pension funds or big institutions) buy and sell stocks away from public exchanges like the NYSE or Nasdaq. Prices aren’t displayed to everyone in real time, which helps big orders get filled without tipping off the whole market.

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 Day Order When you place a stock trade, one of the key decisions you make is how long that order should stay active. A Day Order is one of the most common choices. Simply put, a Day Order is valid only for the trading day in which it was placed. If the market doesn’t meet your terms before the close, the order expires automatically. No overnight carry, no surprises the next day.

Definition of Fill or Kill If you like your stock orders the way you like your coffee—exactly how you want it or not at all—then you’ll appreciate the Fill or Kill order. A Fill or Kill (FOK) order tells the market: “Fill the entire order immediately at my stated price (or better), or cancel it right now.” There’s no partial fill, no waiting, and no compromise.

Definition of a Limit Order A limit order lets you set the maximum price you’re willing to pay to buy, or the minimum price you’re willing to accept to sell. - Buy limit order: “Buy ABC if it hits $50 or less.” - Sell limit order: “Sell ABC if it reaches $75 or more.” Your broker won’t execute unless the market meets your limit. It protects you from paying more (on buys) or accepting less (on sells) than you want.

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.

What is Preferred Stock? Preferred stock is a type of ownership in a company that has a higher claim on assets and earnings than common stock. That means if the company pays dividends, preferred shareholders get theirs first. If the company goes belly-up (let’s hope not), preferred shareholders also get paid before common stockholders—though still after bondholders.

Community property is a legal concept that applies in certain U.S. states. In simple terms, it means any assets or debts acquired during a marriage are considered equally owned by both spouses—no matter who earned it or whose name is on the title. This rule applies in nine states (known as “community property states”): Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. A few others (like Alaska) allow couples to opt in.

Tenancy in Common is a way for two or more people to own property together. Each person owns a share of the property, but those shares don’t have to be equal. One person could own 50%, another 30%, and another 20%. The key here? Each person’s share is individually owned—meaning they can sell, gift, or will their portion to someone else without needing the others’ approval.

Definition: Joint Tenancy is a form of ownership where two or more people hold equal shares in an asset—usually real estate. The defining feature? Right of survivorship. That means if one owner passes away, their share automatically transfers to the remaining owner(s), bypassing probate.

modify, amend, or cancel it—except under very rare circumstances and usually only with court approval or the beneficiaries’ consent. This is the key difference from a Revocable Trust, which you can tweak or dissolve whenever you like. With an irrevocable trust, the assets are no longer legally yours—they belong to the trust, managed by a trustee for the benefit of your chosen beneficiaries.