Running a trading or allocation strategy against historical data to estimate how it would have performed.
A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time. It follows the accounting equation: Assets = Liabilities + Equity.
A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equal to 0.01% or one-hundredth of a percent.
A market condition in which prices fall by 20% or more from recent highs, often accompanied by widespread pessimism and negative investor sentiment.
A measure of a stock's volatility in relation to the overall market. A beta greater than 1 indicates higher volatility than the market, while less than 1 indicates lower volatility.
A well-established, financially sound, and historically secure company. Blue-chip stocks are known for their reliability and ability to operate profitably in good and bad economic times.
A fixed-income instrument that represents a loan made by an investor to a borrower, typically a corporation or government. The borrower agrees to pay periodic interest and return the principal at maturity.
The accounting value of a company's assets minus its liabilities, sometimes expressed per share.
A financial market condition in which prices are rising or are expected to rise. It is typically associated with investor confidence and optimism.
A company repurchasing its own shares, reducing share count and lifting per-share metrics.