Financial Slang

  • Alpha:
    • Meaning: A measure of an investment’s performance relative to a benchmark index, indicating the excess return over the market.
      • The fund manager achieved a high alpha last year, outperforming the S&P 500 by several percentage points.
  • Bear Market:
    • Meaning: A market condition characterized by declining prices and widespread pessimism.
      • During the bear market, many investors felt uncertain and chose to move their assets to safer investments.
  • Cash Cow:
    • A business investment that generates a steady, reliable stream of income.
      • The company’s flagship product is a cash cow, consistently bringing in revenue that funds other projects.
  • Churning:
    • Meaning: Excessive buying and selling of securities to generate commissions for a broker.
    • Example Sentence: “The SEC investigates cases of churning to ensure fair and transparent trading practices.”
  • Dough:
    • Meaning: Slang for money or wealth.
    • Example Sentence: “He made a lot of dough in the stock market during the bull run.”
  • Earnings Call Bingo:
    • Meaning: A humorous term referring to predicting common phrases or buzzwords during corporate earnings conference calls.
    • Example Sentence: “Let’s play earnings call bingo and see how many times they mention ‘synergy’ and ‘strategic initiatives.’”
  • FOMO:
    • (Fear Of Missing Out) The anxiety that one might miss out on potential investment gains.
      • Her decision to buy into the rapidly rising tech stock was driven by FOMO, fear she would miss the next big opportunity.
  • Gravy Train:
    • Meaning: A situation where profits are easily made with little effort.
    • Example Sentence: “Investors enjoyed the gravy train during the cryptocurrency boom, but it didn’t last forever.”
  • Hot Money:
    • Meaning: Funds that are rapidly moved between financial markets in search of the best short-term returns.
    • Example Sentence: “Hot money inflows can create volatility in emerging markets, impacting local currencies.”
  • Insider Trading:
    • Meaning: Buying or selling a security based on material, non-public information.
    • Example Sentence: “The executive was charged with insider trading after selling shares just before the company’s negative earnings announcement.”
  • Jitters:
    • Meaning: Nervousness or anxiety in the financial markets, often leading to increased volatility.
    • Example Sentence: “The market experienced jitters ahead of the economic data release.”
  • Kick the Tires:
    • Meaning: To thoroughly examine and assess an investment or business opportunity.
    • Example Sentence: “Before committing to the deal, the investor wanted to kick the tires and review the company’s financial statements.”