Asset Allocation

The process of dividing your funds among different classes of investments such as stock, bond, or real estate. You could further allocate your stock funds into value, growth, foreign, etc.

Derivatives

Options and other instrument whose value depends on an underlying security. For instance, the value of a call option on Cisco Systems (derivative) fluctuates with the price of Cisco System’s stock.

Intermarket Surveillance Group (ISG)

An international committee comprised of members from 31 exchanges around the world, including every major stock exchange. Membership in the ISG allows all members to share surveillance and investigative information to ensure that each regulator has access to the necessary information to effectively regulate its marketplace. The ISG promotes effective market surveillance among international exchanges and RS involvement helps ensure they are continually in touch with other regulators and part of the development of international best practices.

Assets

Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owed to the company or person. Assets are listed on a company’s balance sheet or an individual’s net worth statement.

Diluted Earnings (a.k.a. fully diluted earnings)

Total of after tax (bottom line) earnings divided by number of common shares including unexercised stock options, and unconverted preferred stock and convertible bonds. Undiluted earnings would be after tax earnings divided by issued stock only, not considering outstanding options, etc.

Gross Profit

Profit a company makes on goods and services before considering overhead expenses. Gross profit is sales minus cost of sales. 

International Securities Identification Number (ISIN)

The international standard that is used to uniquely identify securities. It consists of a two-character alphabetic country code specified in ISO 6166, followed by a nine-character alphanumeric security identifier (assigned by a national security numbering agency), and then an ISIN check-digit.