Investing glossary
Plain-language definitions of the investing terms you meet in filings, in the news and in Finzer.
37 terms, all of them on this page
S
S-1 Filing
An S-1 filing is the SEC registration statement a company must submit before going public in the U.S. Learn how to read it, why it matters for IPO investors, and what red flags to watch.
S&P 500
The S&P 500 is a market-cap weighted index of 500 large U.S. companies, widely used as a benchmark for the U.S. stock market. Learn how it works, what drives it, and how investors actually use it.
Seasonality
Seasonality is the tendency for markets, sectors, or individual stocks to show recurring patterns at the same time each year. Learn where these patterns come from, how reliable they really are, and how smart investors actually use them.
Secondary Offering
A secondary offering is when a public company sells additional shares after its IPO, either issuing new stock or selling existing shares. Learn how secondary offerings work, why stocks often drop, and how smart investors evaluate them.
Sector
A sector is a broad grouping of companies that operate in the same part of the economy, such as technology or healthcare. Learn how sectors work, why they drive returns, and how investors actually use them.
Sector Rotation
Sector rotation is the shifting of investment capital from one stock market sector to another as economic conditions change. Learn what drives it, how it works in practice, and how to use it without chasing noise.
SEDOL
A SEDOL is a seven-character alphanumeric code that uniquely identifies securities traded in the UK and Ireland. Learn how it works, why it matters for investors, and how it differs from ISIN and ticker symbols.
Seed Funding
Seed funding is the first external capital raised by a startup, typically used to build a product and prove early traction. Learn how it works, why valuations matter, and how investors should think about risk at this stage.
Sentiment Analysis
Sentiment analysis measures whether market, investor, or customer language is broadly positive, negative, or neutral. Learn how investors use it to spot turning points, manage risk, and avoid emotional traps.
Share Buyback
A share buyback is when a company repurchases its own shares from the market, reducing the number of shares outstanding. Learn how buybacks work, why companies use them, and how investors should evaluate them.
Share Class
A share class is a category of a company’s or fund’s shares with distinct rights, fees, or voting power. Learn how different classes affect control, returns, and what investors should watch.
Share Issuance
A share issuance is when a company creates and sells new shares to raise capital, increasing the total shares outstanding. Learn how it affects dilution, valuation, and what smart investors watch for.
Sharpe Ratio
The Sharpe Ratio measures how much return an investment generates for each unit of risk taken. Learn how to interpret it, compare portfolios, and avoid common traps.
Short Interest
Short interest is the number of shares sold short but not yet covered, often expressed as a percentage of a stock’s float. Learn how to read it, what drives it, and how investors actually use it.
Short Selling
Short selling is a strategy where an investor borrows a stock, sells it, and profits if the price falls before buying it back. Learn how it works, why it’s risky, and how smart investors actually use it.
Short Squeeze
A short squeeze is a rapid price surge caused by short sellers rushing to buy shares to cover their positions. Learn what triggers squeezes, how they unfold, and how to trade them without blowing up your portfolio.
Slippage
Slippage is the difference between the price you expect to trade at and the price you actually get. Learn why it happens, when it matters most, and how smart investors manage it.
Solvency
Solvency is a company’s ability to meet its long-term financial obligations and stay in business over time. Learn how to assess it, why it matters for investors, and how to spot trouble early.
Sortino Ratio
The Sortino Ratio measures an investment’s return relative to its downside risk, focusing only on harmful volatility below a target return. Learn how to calculate it, when to trust it, and how investors actually use it in practice.
Sovereign Debt
Sovereign debt is money borrowed by a national government, usually through bonds issued in its own or foreign currency. Learn how it works, why it matters to investors, and how to use it to assess risk and opportunity.
Sovereign Risk
Sovereign risk is the risk that a national government fails to meet its debt or financial obligations. Learn what drives it, how it hits portfolios, and how investors should respond.
Spread
A spread is the difference between two related prices, rates, or yields-most often a bid price and an ask price, or one yield versus another. Learn how spreads work, what drives them wider or tighter, and how smart investors actually use them.
Stability Ratios
Stability ratios measure how well a company can meet its long-term financial obligations and withstand economic stress. Learn which ratios matter most, how to calculate them, and how investors actually use them.
Stagflation
Stagflation is an economic environment where high inflation, weak growth, and rising unemployment happen at the same time. Learn why it’s so hard for markets, how it forms, and what investors can actually do.
Standard Deviation
Standard deviation measures how much returns vary around an average, usually expressed as a percentage. Learn how investors use it to judge risk, compare assets, and size positions.
Startup
A startup is a young company designed to scale rapidly, typically built around a new product, technology, or business model. Learn how startups work, how investors evaluate them, and when they matter for your portfolio.
Stimulus
Stimulus is government or central bank action designed to boost economic activity during slowdowns or crises. Learn how stimulus works, why markets react so strongly to it, and how investors should position around it.
Stock Index
A stock index tracks the performance of a defined group of stocks using a standardized calculation method. Learn how indexes work, what drives them, and how investors actually use them.
Stock Liquidity
Stock liquidity is how easily a stock can be bought or sold at its current price without moving the market. Learn how liquidity works, what drives it, and how to use it to avoid costly trading mistakes.
Stock Split
A stock split increases the number of shares outstanding while proportionally lowering the share price, without changing a company’s market value. Learn why companies do it, how it affects your portfolio, and how smart investors actually trade around splits.
Stop-Limit Order
A stop-limit order is a trade instruction that triggers at a stop price but only executes at a specific limit price or better. Learn how it works, when to use it, and the hidden risks most investors miss.
Stop-Loss Order
A stop-loss order is an instruction to sell a security automatically once it falls to a preset price. Learn how it works, when to use it, and how to avoid costly mistakes.
Supply and Demand
Supply and demand describe how prices are set based on how much of an asset is available versus how much buyers want at different prices. Learn how this dynamic moves markets, creates opportunities, and signals risk for investors.
Supply Shock
A supply shock is a sudden, unexpected change in the availability of goods or inputs that causes sharp price and economic disruptions. Learn what causes supply shocks, how markets react, and how investors should position portfolios when they hit.
Support and Resistance
Support and resistance are price levels where a stock historically stops falling or rising due to supply and demand. Learn how to identify them, why they matter, and how investors actually use them.
Systematic Risk
Systematic risk is the market-wide risk that affects all investments and cannot be diversified away. Learn what causes it, how it shows up, and how smart investors manage it.
Systemic Risk
Systemic risk is the risk that a failure in one part of the financial system triggers a cascade that threatens the entire market or economy. Learn what causes it, how it spreads, and how investors can protect portfolios when it shows up.