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Glossary

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There are 7 names in this directory beginning with the letter S.
S&P
The S&P, also known as the S&P 500, is a market-capitalization-weighted index that measures the stock performance of the largest 500 publicly-listed companies. It is one of the most widely followed indexes, with its 500 companies covering almost 80% of the available market capitalization, which has made it one of the best proxies for the U.S. stock market. Watch Video

 

SEC
The U.S. Securities and Exchange Commission (SEC) is an independent federal agency that is responsible for regulating the securities markets, and protecting investors. Some of the functions of the SEC are protecting investors against fraudulent activities through civil actions and promoting full disclosure of securities, approving registration statements for underwriting bookrunners, monitoring corporate activities in the market, and facilitating capital formation. Watch Video

 

Sector
A sector in finance is a part of the economy in which businesses share related products or services. The economy is divided into different sectors to allow for greater in-depth analysis of the economy.

 

Settlement Period
Settlement period is the time between the trade date of security(date trade order of security is executed) and the settlement date of security(date a buyer becomes the holder of security). During the settlement period, transactions of trade are being completed such as the buyer paying for the shares of a security and the seller delivering the shares of a security.

 

Sharpe Ratio
The Sharpe ratio is defined as the difference between the investment return of an asset and the return of a risk-free asset. It is a measure of risk-adjusted return used by investors to measure the performance of their investment in comparison to risk-free assets to determine the additional amount of return the investment has made per unit increase of risk, in comparison to a risk-free asset. Watch Video

 

Standard Deviation
The standard deviation is a statistical measure that, in investment analysis, allows investors to measure the deviation of securities from the mean. This reflects in the volatility of the investment by showing the range of the price swings of the security when applied to the annual rate of return of investment. Watch Video

 

Style-based ETFs
Style-based ETFs (commonly associated with Factor-based ETFs) are ETFs that invest in securities based on a certain investment style or market capitalization. The Style-based ETFs generally track either growth indexes or Value-indexes. In these indexed categories, investors can find ETFs that can give them exposure to stocks with different market capitalizations, industry focus, and country exposure. Watch Video