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PLAIN LANGUAGE

Investor glossary

The terms that matter, without circular definitions.

Dividend yield

Annual dividend as a percentage of the current share price.

P/E ratio

Share price relative to earnings per share.

Liquidity

How easily shares can be traded without moving the price sharply.

Momentum

The recent direction and strength of price or business performance.

Margin of safety

Room for error between price paid and estimated value.

Scenario

One plausible path built from explicit assumptions—not a promise.

P/B ratio

Share price relative to accounting net assets; most useful with sector context.

RSI

A momentum measure from 0 to 100; it describes speed, not an automatic trade.

Prediction confidence

Strength of evidence behind a range—not the chance of making money.