Core Financial Instruments (1–8)
- Stocks – Ownership shares in companies.
- Bonds – Loans to corporations/governments with interest payments.
- Treasury Bills (T-Bills) – Short-term government debt sold at a discount.
- Treasury Notes (T-Notes) – Medium-term government securities (2–10 years).
- Treasury Bonds (T-Bonds) – Long-term US government bonds (up to 30 years).
- Municipal Bonds (Munis) – Bonds issued by states/cities, often tax-advantaged.
- Corporate Bonds – Debt issued by companies, riskier than government bonds.
- Options – Right to buy/sell at a set price by a set date (calls/puts).
Key Economic Indicators (9–18)
- GDP (Gross Domestic Product) – Total value of goods/services produced.
- CPI (Consumer Price Index) – Measures inflation at the consumer level.
- PPI (Producer Price Index) – Measures inflation at the producer/wholesale level.
- Unemployment Rate – Measures joblessness in the economy.
- Non-Farm Payrolls (NFP) – US monthly job growth report.
- Retail Sales – Measures consumer spending.
- ISM Manufacturing Index – Economic activity in manufacturing.
- Durable Goods Orders – Measures new orders for long-lasting goods.
- Housing Starts – Number of new residential construction projects started.
- Consumer Confidence Index – Gauge of consumer optimism.
Monetary Policy and Interest Rates (19–28)
- Federal Funds Rate – Key short-term interest rate set by the Fed.
- Discount Rate – Rate the Fed charges banks for short-term loans.
- Open Market Operations – Buying/selling government securities to control money supply.
- Quantitative Easing (QE) – Central bank asset-buying program to stimulate economy.
- Tapering – Gradual reduction of QE.
- Yield Curve – Graph showing interest rates by maturity; steep or inverted curves matter.
- Inverted Yield Curve – Predictive sign of a potential recession.
- Interest Rate Hike – Fed raising rates to cool inflation.
- Interest Rate Cut – Fed lowering rates to stimulate economy.
- Monetary Policy Statement – Fed’s explanation of economic conditions and decisions.
Market Mechanics (29–38)
- Liquidity – How easily assets can be bought/sold.
- Volatility – Degree of asset price fluctuation.
- VIX (Volatility Index) – Measures expected 30-day volatility ("fear gauge").
- Bid Price – The price buyers are willing to pay.
- Ask Price – The price sellers want.
- Bid-Ask Spread – The difference between bid and ask prices.
- Volume – Number of shares/contracts traded.
- Open Interest – Total number of outstanding derivative contracts.
- Market Order – Buy/sell immediately at current price.
- Limit Order – Buy/sell only at a specific price or better.
Trading Strategies and Concepts (39–46)
- Support Level – A price level where a stock tends to stop falling.
- Resistance Level – A price level where a stock tends to stop rising.
- Breakout – When the price moves outside a defined support/resistance.
- Short Selling – Selling borrowed shares, aiming to buy back cheaper.
- Margin – Borrowing funds to trade.
- Leverage – Using margin to amplify gains/losses.
- Stop Loss Order – Automatically sell at a predefined loss level.
- Take Profit Order – Automatically sell when a target profit is hit.
Important Financial and Economic Concepts (47–50)
- Inflation – General rise in prices, reducing purchasing power.
- Deflation – General fall in prices, increasing purchasing power.
- Recession – Two consecutive quarters of GDP decline.
- Expansion – Period of economic growth following a recession.