Financial Glossary
Clear, example-led definitions of stock market, currency, gold, crypto and economy terms.
97 terms
- AltcoinAltcoin is a term for any cryptocurrency other than Bitcoin, encompassing thousands of alternative digital assets like Ethereum, Solana, and Cardano.
- Bear MarketA market condition where prices fall significantly, typically by 20% or more, amid widespread pessimism.
- BIST 100The benchmark index of Borsa İstanbul, composed of the 100 companies with the highest market capitalization and trading volume.
- BitcoinThe first and largest cryptocurrency, a decentralized digital network for peer-to-peer value transfer without a central authority.
- BlockchainA distributed digital ledger that records transactions in secure, linked blocks, making them nearly impossible to alter.
- BondA bond is a fixed-income instrument representing a loan made by an investor to a borrower, typically a corporation or government, which pays periodic interest.
- Bonus IssueA 'bonus issue' where a company distributes free additional shares to existing shareholders from its reserves, without raising new capital.
- Brokerage FirmA licensed firm that facilitates the buying and selling of securities like stocks and bonds for investors.
- BudgetA plan that estimates income and expenses over a specific future period, used to manage finances.
- Budget DeficitA budget deficit occurs when a government's spending exceeds its revenue over a specific period.
- Bull MarketA financial market condition characterized by rising prices and widespread investor optimism.
- Capital Markets BoardThe Capital Markets Board (SPK) is the independent public authority that regulates and supervises Turkey's capital markets.
- Central BankA central bank is a national institution that manages a country's currency, money supply, and interest rates to ensure monetary stability.
- Consumer Price IndexThe Consumer Price Index (CPI) is the primary gauge used to measure inflation by tracking price changes for a basket of consumer goods and services.
- Core InflationInflation with the most volatile items — typically energy and food — stripped out, to show the underlying trend.
- CreditA sum of money lent by a bank or financial institution that is repaid with interest over time.
- Credit CardA payment card that allows you to borrow funds up to a pre-set limit to make purchases, with the balance repayable later.
- Credit RatingA numerical score that represents an individual's creditworthiness based on their financial history.
- Cross RateA cross rate is the exchange rate between two currencies, calculated indirectly through their respective rates against a common third currency, usually the US dollar.
- Crypto WalletA digital tool that stores the cryptographic keys needed to access, send, and receive cryptocurrencies on a blockchain.
- CryptocurrencyA digital asset secured by cryptography, typically operating on a decentralized blockchain network.
- Cryptocurrency ExchangeAn online platform where users can buy, sell, and store cryptocurrencies.
- Cryptocurrency MiningCryptocurrency mining is the computational process of validating transactions and creating new coins on a proof-of-work blockchain network.
- Currency PairA currency pair is the quotation of the relative value of one currency unit against another, forming the basis of forex trading.
- Current Account DeficitA current account deficit occurs when a country spends more on imports, foreign investments, and transfers than it earns from exports and foreign income.
- Decentralized FinanceDecentralized Finance (DeFi) is an ecosystem of open, blockchain-based financial services that operate without traditional intermediaries like banks.
- DeflationDeflation is a sustained decrease in the general price level of goods and services in an economy, the opposite of inflation.
- DepositMoney placed in a bank account, either for immediate access or for a fixed term to earn interest.
- DevaluationDevaluation is a deliberate downward adjustment to the official value of a country's currency relative to other currencies under a fixed or managed exchange rate system.
- DividendA portion of a company's profits distributed to its shareholders, usually in cash or additional shares.
- Dividend YieldDividend yield is the annual dividend payment per share expressed as a percentage of the stock's current market price.
- EthereumA blockchain platform that supports smart contracts and decentralized applications, powered by its native cryptocurrency, Ether (ETH).
- EurobondA long-term bond issued by a government or company in an international market, usually denominated in a currency like USD or EUR.
- Exchange RateAn exchange rate is the price of one country's currency expressed in terms of another country's currency.
- Exchange-Traded FundAn ETF, or Exchange-Traded Fund, is a type of investment fund that tracks an index, sector, or asset and trades on a stock exchange like a share.
- Fiscal PolicyThe use of government spending and taxation to influence a nation's economy, managed by the Treasury and legislative bodies.
- Foreign ExchangeForeign exchange (forex) refers to global currencies and the market where they are traded, with exchange rates determining their relative value.
- ForexForex (FX) is the global decentralized market for trading national currencies against one another, operating 24 hours a day during the week.
- FuturesA futures contract is a binding agreement to buy or sell an asset at a predetermined price on a specific future date.
- Futures and Options MarketA regulated marketplace for trading standardized derivative contracts, such as futures and options, based on underlying assets.
- Gold PurityGold purity, measured in karats (or carats), indicates the proportion of pure gold in a metal alloy, with 24 karats being pure gold.
- Gram GoldGram gold is a unit for trading gold based on its weight in grams, with its price derived from the global ounce price and the local currency exchange rate.
- Gross Domestic ProductGross Domestic Product (GDP) is the total monetary value of all final goods and services produced within a country's borders in a specific time period.
- IndexA statistical measure that tracks the performance of a specific group of securities, representing a segment of the financial market.
- InflationInflation is the sustained increase in the general price level of goods and services in an economy, eroding the purchasing power of money.
- Initial Public OfferingThe first time a private company offers its shares to the public on a stock exchange to raise capital.
- InterestInterest is the cost of borrowing money or the return earned on deposited funds, typically expressed as an annual percentage rate.
- Jewelry GoldGold crafted primarily for ornamental or gift purposes, such as jewelry or commemorative coins.
- LeverageThe use of borrowed capital or financial instruments to amplify the potential return (and risk) of an investment.
- Limit OrderA limit order is an instruction to buy or sell a security only at a specified price or better, giving the investor control over the execution price.
- LiquidityThe ease with which an asset can be quickly bought or sold in the market without affecting its price.
- LotA lot is the standardized number of units of a security that constitutes the minimum trading quantity on an exchange.
- MarginMargin is the collateral, typically cash or securities, that an investor must deposit to cover the credit risk of a leveraged position.
- Market CapitalizationMarket capitalization is the total market value of a company's outstanding shares, calculated by multiplying the current share price by the total number of shares.
- Market OrderA market order is an instruction to buy or sell a security immediately at the best available current market price.
- Minimum WageThe lowest hourly, daily, or monthly remuneration that employers are legally required to pay their workers.
- Monetary PolicyThe actions of a central bank, such as the Federal Reserve, to control the money supply and interest rates to achieve economic objectives.
- MortgageA long-term loan used to purchase real estate, where the property itself serves as collateral for the debt.
- Moving AverageA technical indicator that smooths out price data by creating a constantly updated average price over a specific period.
- Mutual FundA mutual fund is an investment vehicle that pools money from many investors to buy a diversified portfolio of stocks, bonds, or other assets, managed by professionals.
- Non-Farm Payrolls (NFP)The monthly change in US jobs outside farming — the single most closely watched economic release.
- Non-Fungible TokenAn NFT (Non-Fungible Token) is a unique digital certificate of ownership stored on a blockchain, representing a specific asset like art, music, or collectibles.
- Notice PayCompensation paid by an employer when terminating an employment contract without providing the legally required notice period.
- OptionAn option is a contract giving the buyer the right, but not the obligation, to buy or sell an asset at a set price by a certain date.
- Ounce GoldThe ounce gold price refers to the value of one troy ounce of gold, quoted in US dollars, which is the global benchmark for gold pricing.
- PMI (Purchasing Managers' Index)A monthly survey of purchasing managers, read against a threshold of 50: above is expansion, below is contraction.
- PortfolioThe complete collection of an investor's financial assets, such as stocks, bonds, and cash.
- Preemptive RightThe 'preemptive right' of existing shareholders to buy new shares in a rights issue before they are offered to the public.
- Price-to-Earnings RatioThe Price-to-Earnings (P/E) ratio measures a company's share price relative to its per-share earnings, indicating its valuation.
- Private Pension SystemA Private Pension System is a voluntary, long-term savings plan for retirement, often with government incentives.
- Producer Price IndexThe Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output.
- Public Disclosure PlatformThe Public Disclosure Platform (KAP) is the official electronic system where publicly traded companies in Turkey must announce material information.
- Pure GoldPure gold, also known as 24-karat gold, is gold with a fineness of approximately 99.5% or higher, containing almost no other metals.
- Quarter GoldA small, widely traded gold coin, often used for gifts or small-scale savings, weighing approximately 1.75 grams.
- RecessionA recession is a significant, widespread, and prolonged downturn in economic activity, often marked by falling GDP and rising unemployment.
- Relative Strength IndexA momentum oscillator that measures the speed and magnitude of price movements to identify overbought or oversold conditions.
- RepoA repurchase agreement (repo) is a short-term loan where securities are sold with an agreement to repurchase them later at a higher price.
- Rights IssueA 'rights issue' where a company raises capital by issuing new shares to existing shareholders for a payment.
- SavingsSavings is the portion of income not spent on consumption, set aside for future use or investment.
- SettlementSettlement is the process completed after a trade, where the security is delivered to the buyer and cash is delivered to the seller.
- Severance PayA lump-sum payment made to an employee upon termination of employment under specific circumstances, often based on years of service.
- Short SellingShort selling is the practice of borrowing and selling an asset you don't own, hoping to buy it back later at a lower price to profit from a decline.
- Spot TransactionA spot transaction is the immediate purchase or sale of a financial instrument, commodity, or currency for immediate delivery and settlement.
- SpreadThe spread is the difference between the bid price (what buyers are willing to pay) and the ask price (what sellers are asking) for an asset.
- StablecoinA type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar.
- StagflationStagflation is an economic condition characterized by stagnant growth, high unemployment, and high inflation occurring simultaneously.
- StakingA method of earning rewards by locking up cryptocurrency to support a blockchain network's security and operations.
- StockA security that represents fractional ownership of a corporation, entitling the holder to a claim on part of the company's assets and earnings.
- Stock ExchangeA regulated marketplace where securities like stocks and bonds are bought and sold according to specific rules.
- Support and ResistanceSupport is a price level where a downtrend may pause due to buying interest; resistance is a level where an uptrend may stall due to selling pressure.
- SwapA swap is a derivative contract where two parties agree to exchange cash flows, such as interest payments or currencies, over a set period.
- TaxA mandatory financial charge levied by a government on individuals or entities to fund public expenditures.
- Trading SessionA trading session is the specific time period during a day when a stock exchange is open for executing buy and sell orders.
- Treasury BillA Treasury bill (T-bill) is a short-term debt obligation issued by the U.S. government with a maturity of one year or less, sold at a discount to its face value.
- Unemployment RateThe unemployment rate is the percentage of the labor force that is jobless and actively seeking employment.
- VolatilityA statistical measure of the dispersion of returns for an asset or market index, often representing its price fluctuation risk.
- WarrantA warrant is a financial instrument issued by a company that gives the holder the right, but not the obligation, to buy its stock at a specific price before a set expiration date.