Financial Terms

Question 1

Define

“Secular Market”

Answer 1

• Also known as a secular trend, refers to a long-term trend or pattern in the financial markets. It’s like the big picture or the overall direction that the market moves in over many years.
• In finance, a secular market can be a bull market, where stock prices generally go up over a long period, or a bear market, where stock prices generally go down over a long period. Understanding the secular market helps investors make decisions about when to buy or sell investments based on the long-term direction of the market.

Question 2

Catalyst

Answer 2

• A catalyst in the markets can be anything that leads to a drastic change in a stock’s current price trend.
• The most common catalysts come in the form of new, often unexpected, information that causes the market to reevaluate a company’s business prospects.
• Examples of catalysts include earnings reports, new legislation, and product announcements.
  Some investors and traders look for catalysts to create short-term market opportunities for profit.

Question 3

Standard Deviation

Answer 3

• Standard deviation is a measure of how much the returns on an investment tend to vary or deviate from the average or expected return over time.
• when you’re comparing investments, the one with a lower standard deviation is generally considered less risky because it’s more consistent, while the one with a higher standard deviation is riskier because it can have more significant ups and downs

Question 4

ESPP

Acronym

Answer 4

Employee Stock Purchase Plan

Question 5

ACATS

Acronym

Answer 5

Automated Customer Account Transfer System