Drawdown means how much an investment or trading account has fallen from a peak before it recovers to a peak.
Drawdowns are usually given as a percentage, but dollar terms can also be used if applicable to the particular trader.
Drawdowns are a measure of downward volatility.
When evaluating drawdowns, one should also take into account the time required for the drawdown to recover.
Drawdown and loss are not necessarily the same thing. Most traders view drawdowns as a peak-to-trough indicator, while losses usually refer to the purchase price relative to the current or exit price.
The annual equivalent rate (AER) is the actual interest rate on investments, loans or savings accounts that can be obtained after compounding interest.
Automated Account Transfer Service (ACATS) can be used to transfer stocks, bonds, cash, mutual funds, mutual funds, options, and other investment products.
Average Annual Return (AAR) is a percentage that represents the average historical return of a mutual fund, typically reported over three, five, and 10 years.
The bid-ask spread is the difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept.
The Blue Ocean is considered (from a marketing point of view) as yet an untapped or uncontested market space.
– The term was coined by Chang Kim and René Mauborgne in Blue Ocean Strategy: How to Create Free Market Space and Eliminate Competition.
The book value of a company is the net difference between the total assets and total liabilities of that company, where the book value reflects the total value of the company’s assets that the company’s shareholders would have received if the company were liquidated.
“Buy and hold” is a long-term passive strategy in which investors maintain a relatively stable portfolio over time, regardless of short-term fluctuations.