HomeAll resourcesGlossaryGlossary letters

abcdefghijklmnopqrstuvwxyz

C (credit rating)

A C credit rating is typically a very low rating given to securities that are at significant risk of default, indicating poor credit quality.Learn more

C-Suite

The C suite refers to the highest-ranking senior executives in an organisation, beginning with the title 'chief' (eg, chief executive officer or CEO, chief financial officer or CFO).

Cable In Forex Trading

In forex trading, 'cable' is a term used specifically to describe the GBP/USD currency pair, denoting the British pound to US dollar exchange rate. It originated from the transatlantic cable used to transmit the exchange rate between the two currencies.

CAC 40 index

The CAC 40 Index is a benchmark French stock market index that tracks the performance of the 40 largest, publicly traded companies listed on the Euronext Paris, and represents a broad measure of France’s market performance.Learn more

CAGR

CAGR, or Compound Annual Growth Rate, is a measure used to calculate the mean annual growth rate of an investment over a specified time period longer than one year, smoothing out the returns as if the investment had grown at a steady rate.

Calculation products (indices)

Calculation products indices refers to the indices on which financial products like derivatives are to be based. Such calculations are high speed and fully automated.

Call Auction

A call auction is an event where people buy or sell units of a good. Participants choose whether to buy or sell units at certain prices and the orders are collected and matched to make a contract.Learn more

Call on a Call

A call on a call is an option strategy involving two call options, where buying a call option grants the investor the right to buy another call option at a specific strike price and expiration date.

Call Option

A call option gives the holder the right, but not the obligation, to buy a stock or other financial asset at a specified price within a certain period, aiming for profit if the asset’s price increases.

Calmar ratio

The Calmar ratio is a performance metric that compares the average annual compounded rate of return and the maximum drawdown risk of investment portfolios, providing insight into risk-adjusted returns.

CAMELS rating system

The CAMELS rating system is a recognised international banking rating system where bank regulators evaluate six factors of a bank’s health: Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk.

Candle Chart

A candlestick chart is a style of financial chart using in trading. It depicts price movements of an asset, displaying the high, low, open, and closing prices in a format resembling a candle with wicks.

Learn more

Capital

In finance, capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts and funds obtained from special financing sources.

Learn more

Capital asset pricing model

The capital asset pricing model (CAPM) is a theoretical representation used in finance to determine a theoretically appropriate required rate of return of an asset, considering its risk compared to the market.

Capital Expenditure (CAPEX)

Capex, or capital expenditure, refers to funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to enhance or maintain its operations.

Capital flight

Capital flight occurs when assets or money rapidly flow out of a country, due to economic or political instability, resulting in the depletion of national wealth and economic strength.

Capital gains distribution

Capital gains distribution occurs when a fund's investments have realised net gains, and these gains are paid out to the fund's shareholders, typically annually.

Capital Gains Tax

Capital gains tax is a tax on the profit realised on the sale of a non-inventory asset that was greater than the purchase price, most commonly assessed on investments or properties after they are sold.

Capital Goods

Capital goods are physical assets that an organisation uses in the production process to manufacture products and services that consumers will later use.

Learn more

Capital Market

The capital market is a financial market in which long-term debt or equity-backed securities are bought and sold, whereas money markets entail the trading of short-term debt investments.Learn more

Capital market imperfections

Capital market imperfections refer to various frictions that may prevent the financial market from operating efficiently, such as asymmetric information, transaction costs, and taxes.

Capital recovery factor

The capital recovery factor is a formula used in finance to calculate the total amount needed to recover an initial investment through instalment payments, including interest.Learn more

Capitalisation

In finance, capitalisation refers to the total value of securities issued by a company, including bonds, stock, retained earnings, and long-term debt.Learn more

Carhart four-factor model

The Carhart Four Factor Model is an extension of the Fama and French Three Factor Model that includes an additional factor for momentum, used to explain the risk and return of diversified portfolios.Learn more

Carrying cost

Carrying cost can affect how businesses manage inventory, price products and assess profitability. It can also apply to the cost of holding certain financial positions over time.

Learn more

Cascades in financial networks

Cascades in financial networks refer to a situation where a failure in one part of a financial system triggers a series of failures across other interconnected parts, potentially leading to widespread financial instability.

Cash conversion cycle

The cash conversion cycle is a financial metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Cash deposit

A cash deposit is the placement of funds in a financial institution for protective custody, which can be accessed as needed through bank accounts or ATMs.Learn more

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders, usually in the form of cash, reflecting the company's distribution of profits.

Cash Flow

Cash flow represents the total amount of money being transferred in and out of a business, particularly affecting liquidity and overall financial health.Learn more

Cash flow hedge

A cash flow hedge is a strategy used in financial risk management to protect against changes in the cash flows associated with existing assets, liabilities, or forecasted transactions due to variable rates or prices.

Cash inflow

Cash inflow refers to the movement of money into a company, typically from operations, financing, or investing activities, indicating the company's ability to generate revenue.Learn more

Cash outflow

Cash outflow is a useful part of financial analysis because it shows how and when money leaves a business. This can help investors, analysts and managers understand how a company manages its available cash.

Learn more

Cash ratio

The cash ratio is a liquidity ratio that measures a company’s ability to pay off short-term liabilities with cash and cash equivalents alone, providing a strict measure of liquidity.

Cash-flow return on investment (CFROI)

Cash flow return on investment (CFROI) is a valuation metric that looks at the cash returns a company generates relative to the economic value of its assets, providing insight into the effectiveness of a company’s financial management.

CBOT

The Chicago Board of Trade (CBOT) is one of the world's oldest futures and options exchanges where traders buy and sell contracts on agricultural and other commodities, such as grains, meat, and precious metals.

CC (credit rating)

A CC credit rating is assigned to securities that are currently highly vulnerable to nonpayment and are reliant upon favourable business, financial, and economic conditions to meet financial commitments.Learn more

CCC+ (credit rating)

A CCC credit rating indicates bonds that are of very high risk, suggesting that the issuer is at greater risk of defaulting and requires positive economic conditions to meet financial commitments.Learn more

Central Bank

A central bank is an institution that manages a state's currency, money supply, and interest rates. It oversees the commercial banking system and implements the government’s monetary policy.

Central limit order book

The central limit order book (CLOB) is an electronic system used in trading where buy and sell orders are matched based on price and time priority, providing transparency and efficiency in markets.

CFA

Chartered financial analyst (CFA) is a professional credential offered by the CFA Institute to financial and investment professionals. It's issued after passing three levels of exams covering areas such as ethics, accounting, economics, and money management.

CFP

Certified financial planner (CFP) is a formal recognition of expertise in the areas of financial planning, taxes, insurance, estate planning, and retirement, awarded by the Certified Financial Planner Board of Standards in the US.

Chart

In finance, a chart is a graphical representation of historical prices, volumes, or other financial data. Charts are essential tools for technical analysis, helping traders and analysts visualise trends and patterns.

Checkable Deposits

Checkable deposits are bank account balances that can be drawn upon by writing a check or using a debit card. These are highly liquid and are often used for day-to-day expenses.Learn more

Chicago Board Options Exchange (CBOE) VIX of VIX (VVIX)

The Chicago Board Options Exchange (CBOE) is the largest US options exchange with contracts including options on stocks, indices, and interest rates.

Chicago Mercantile Exchange

The Chicago Mercantile Exchange (CME) is a global derivatives marketplace where traders can trade futures and options in a wide range of asset classes, including agricultural products, energy, and metals.

China A50 index

The China A50 Index is an index that tracks the top 50 stocks by market capitalisation listed on the Shanghai and Shenzhen stock exchanges, representing major sectors of the Chinese economy.

China Concepts Stock

China Concepts Stocks refers to shares of companies whose assets or earnings have significant activities in mainland China but are listed on foreign exchanges, often seen in Hong Kong, New York, or London.

China Construction Bank Corporation

China Construction Bank is one of China’s 'Big Four' banks, which provides a comprehensive range of commercial banking products and services to its customers, including corporate banking, personal banking, and treasury operations.

Choice dividend

A choice dividend allows shareholders to choose between receiving dividends in the form of cash or additional shares of the company, providing flexibility to investors.

CIBI Information, Inc

CIBI Information, Inc. is the first credit bureau in the Philippines, established to provide credit information and analysis to financial institutions, businesses, and individuals. It plays a crucial role in the financial ecosystem by enhancing credit visibility and facilitating access to credit, thereby supporting economic growth and financial inclusion.

Clean Float

A clean float, also known as a pure float, occurs when a country's currency exchange rate is determined entirely by the forex market with no government intervention.

Clearing

Clearing in financial markets refers to the process of updating accounts of the trading parties and arranging for the transfer of money and securities following trades on stock, futures, and options markets.

Clearing balance requirements

The clear balance is the amount of money in an account that is available for withdrawal or processing of checks and other debits, free of holds or pending transactions.

Clearing House

A clearing house acts as an intermediary between buyers and sellers in financial markets, ensuring the smooth transfer of funds and securities and reducing the risk of default by either party.

ClearScore

ClearScore is a UK-based company that provides consumers with free access to their credit reports and scores, helping individuals understand and manage their credit status while offering personalised financial product recommendations.

Clientele effect

The clientele effect is a theory that suggests that the types of securities a company issues attract specific groups of investors who prefer certain dividend policies or corporate strategies that match their own financial goals.

Closing offset (CO) order

A CO order, or conditional order, is a set of instructions for executing a trade only if specific conditions are met, allowing traders to manage their entry and exit strategies more effectively.

Closing Price

The close price is the final price at which a security is traded on a given trading day, often used as a standard measure for tracking the daily performance of stocks and other securities.

CMO

A collateralised mortgage obligation, or CMO is a type of complex debt security that repackages individual mortgage-backed securities into tiers that depend on risk, maturity, and other factors.

Coherent risk measure

A coherent risk measure is a method of assessing the level of financial risk in a portfolio that satisfies several mathematical requirements, ensuring consistent and reliable risk evaluation.Learn more

Collateral

Collateral is any asset that a borrower offers to a lender as security for a loan. If the borrower fails to repay the loan, the lender has the right to seize the collateral and sell it to recover the money.Learn more

Collateralized debt obligation

A collateralised debt obligation (CDO) is a complex financial product that pools various types of debt, including loans and bonds, and repackages this asset-backed security for investors, categorised by varying degrees of risk.

Collateralized mortgage obligation

A collateralised mortgage describes a mortgage loan secured by collateral, typically the property purchased with the mortgage funds.

Collective action clause

A collective action clause is a provision included in the terms of a bond or other debt instrument that allows a majority of bondholders to agree to changes in terms, such as restructuring, binding all holders.

COMEX

The COMEX (Commodity Exchange Inc.) is a primary market for trading commodities and futures contracts, particularly in metals like gold, silver, and copper, located in New York.Learn more

Commercial mortgage-backed security

A commercial mortgage-backed security (CMBS) is a type of mortgage-backed security that is secured by mortgages on commercial properties rather than residential real estate.

Commission

In finance, a commission is a fee paid to a broker or agent for facilitating transactions, including the buying and selling of stocks, bonds, or other securities.

Committee of European Securities Regulators

The Committee of European Securities Regulators (CESR) was an independent committee of European regulators aimed at harmonising regulation across European securities markets, now succeeded by the European Securities and Markets Authority (ESMA).

Commodity channel index (CCI)

The Consumer Confidence Index (CCI) is an economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation.

Commodity ETF

A commodity ETF is an exchange-traded fund that invests in physical commodities, such as agricultural goods, natural resources, or precious metals, or in commodity futures contracts.Learn more

Commodity risk

Commodity risk refers to the uncertainties of future market values and of the size of the future income, caused by fluctuations in the prices of commodities that a company uses or produces.

Commodity supercycle

A commodity supercycle is an extended period during which commodity prices are well above their long-term trend, typically driven by sustained structural changes in demand and supply.

Commodity Swap

A commodity swap is a financial derivative agreement where two parties exchange cash flows related to a commodity's price, one fixed and one variable, typically used for hedging against price fluctuations.

Commodity-backed money

Commodity-backed money refers to currency that can be exchanged for a specified amount of a commodity, typically a precious metal like gold or silver, grounding the money's value in a physical resource.Learn more

Common ordinary equity

Ordinary equity, also known as common equity, represents shares that give their holders the right to vote at shareholder meetings and to receive dividends, subject to the company's performance.

Common Stock

Common stock is a type of equity security that represents ownership in a corporation, with holders often having voting rights and potentially receiving dividends.

Common stock dividends and DRIP

DRIP common stock refers to common stock that can be purchased through a dividend reinvestment plan, allowing shareholders to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.

Compliance Officer

The compliance office in a corporation or financial institution is responsible for ensuring that the company adheres to both internal policies and legal regulations, thereby protecting the organisation from risk and penalties.

Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods, leading to exponential growth.

Compounding

Compounding refers to the process where the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.

Comprehensive Capital Analysis and Review

CCAR is a regulatory framework introduced by the Federal Reserve to assess, regulate, and supervise the capital planning processes and capital adequacy of large US banks, ensuring their financial resilience.

Condition-related order

A condition related order in trading is an order that includes specific conditions that must be met before the order is executed, such as reaching a particular price point or meeting a volume threshold.

Conditional Listing Application (CLA)

A conditional listing application (CLA) is a type of filing that a company submits to a stock exchange to request that its shares be listed, subject to meeting certain conditions set by the exchange. This process is crucial for companies seeking to go public and have their stock traded on the market.

Confidential Treatment Order (CTO)

A confidential treatment order is issued by regulatory bodies such as the SEC to allow companies to withhold confidential information from public disclosures to protect sensitive business information from competitors.

Conglomerate merger

A conglomerate merger occurs between companies operating in different industries. This type of merger is typically pursued to diversify business operations and reduce overall business risk.

Consensus Mechanism

In blockchain technology, consensus mechanisms are protocols that ensure all participants in a distributed network agree on the single state of a blockchain, essential for maintaining security and consistency.

Conservative investing

Conservative investing is an investment strategy marked by a preference for lower risk securities, such as bonds and blue-chip stocks, and aims for steady and reliable returns over high-risk, high-reward investments.

Consistent pricing process

A consistent pricing process refers to a method in which a company ensures that its pricing strategy is uniform across different regions or markets, often to maintain brand integrity and customer trust.

Consolidated Quotation System

The consolidated quotation system (CQS) provides real-time quotation information for securities traded on multiple exchanges, facilitating a broader market transparency.

Consolidated Tape System

The consolidated tape system (CTS) reports and consolidates price and volume information on exchanges in the United States, providing a continuous live feed of stock transactions.

Consumer credit risk

Consumer credit risk refers to the potential of loss resulting from consumers defaulting on credit obligations, including loans and credit card payments.

Consumer price index (CPI)

The consumer price index, or CPI, measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, widely used as an indicator of inflation.

Contango

Contango is a situation where the futures price of a commodity is higher than the spot price, typically indicating that investors expect the price of the commodity to rise over time.

Contract consolidation

Contract consolidation involves combining multiple related contracts into a single contract to simplify administration and potentially achieve better terms.

Contract soulte (a type of cash settlement)

Contract soulte refers to an agreement in which a sum of money is paid to balance the difference in value between exchanged goods or properties, often seen in divisions of inheritance or joint property adjustments.

Contract split

Contract splitting refers to dividing a larger contract into several smaller ones, often to manage risk, comply with legal requirements, or achieve administrative convenience.Learn more

Control premium

Control premium is the additional amount an investor is willing to pay over the current market price of a company's shares to acquire a controlling stake in the company, reflecting the value of gaining control.

Controlling (majority) shareholder

A controlling shareholder is an individual or entity that holds a sufficient number of voting shares of a company, typically a majority of the shares, to influence the company’s policies and decisions.

Convenience Yield

Convenience yield means the benefit or premium associated with holding an actual physical commodity rather than contracts or derivatives, reflecting the value of having physical access to a commodity.

Learn more

Convergence trade

Convergence trade is an investment strategy that aims to capitalise on the price differences between similar or related financial instruments, betting on the price convergence over time.Learn more

Convertible bond

A convertible bond is a type of bond that the holder can convert into a predetermined number of shares of the issuing company, typically at the holder's option, combining features of debt and equity.

Convertible issue

A convertible issue refers to a type of security, usually a bond or a preferred stock, that can be converted into a predetermined amount of the issuer's common stock at the holder's option within a specified period.

Copy trading

Copy trading is an investment strategy that allows traders to automatically copy positions opened and managed by another selected trader, usually within a social trading network.Learn more

Core inflation

Core inflation is a measure of the underlying increase in consumer prices that excludes food and energy prices, which tend to be much more volatile, providing a clearer picture of long-term inflation trends.

Cornering the market

Cornering a market occurs when an individual or group acquires enough shares or commodities to control the market price, often to manipulate prices favourably before selling off holdings.

Corporate Actions

A corporate action is any event initiated by a company that brings material change to the organisation and affects its stakeholders, including stock splits, dividends, mergers, and acquisitions.

Corporate bonds

Corporate bonds can help companies raise capital while giving investors a defined interest-payment structure. However, returns and repayment depend on the issuer’s financial position, and bond values can change over time.

Learn more

Correlation

In finance, correlation is used to represent how closely the returns of two securities move in relation to each other, which can help in diversifying a portfolio and managing risk.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two variables on a value range of -1 to 1, where 1 means perfect correlation.

Cost Approach

The cost approach is a real estate valuation method that estimates the price a buyer should pay for a piece of property based on the cost of constructing an equivalent building.Learn more

Counterparty risk

Counterparty risk can affect many financial contracts, from bank deposits and bonds to OTC derivatives. Understanding how it works can help explain why financial institutions use tools such as collateral, credit checks and clearing houses to manage exposure.

Learn more

Coupon Payment

A payment coupon is a document attached to periodic loan statements like those for a mortgage, which indicates the amount due and provides a place for payment information if mailed.

Coupon rate

The coupon rate is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

Covenant-Lite Loan

A covenant lite loan is a type of financing that is issued with fewer restrictions on the borrower and fewer protections for the lender compared to traditional loans.

Covered interest arbitrage

Covered interest arbitrage is a strategy in which an investor uses a forward contract to hedge against exchange rate risk when investing in foreign interest-bearing instruments.

Learn more

Credibility theory

In finance, credibility often refers to the trustworthiness or reliability of a company, particularly in the ability to meet financial commitments and maintain sound financial policies.

Credit

In financial terms, credit refers to the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.

Credit Agricole

Crédit Agricole is a major French bank, one of the largest in Europe, known for its cooperative banking structure, providing a wide range of banking and financial services.

Credit Card

A credit card is a plastic card issued by a bank or financial institution that allows the cardholder to borrow funds with which to pay for goods and services with merchants that accept cards for payment, under the agreement that the cardholder will pay back the borrowed money, plus any agreed-upon additional charges, either in full by the billing date or over time.

Credit Default Swap

A credit default swap is a financial derivative or contract that allows an investor to 'swap' or offset their credit risk with that of another investor.

Credit rating

A credit rating is an assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.Learn more

Credit Rating Agency

A credit rating agency is a company that assigns credit ratings for issuers of certain types of debt securities, as well as the debt instruments themselves.

Credit Reference

Credit references are documents or reports that outline an individual's or company's past history of credit arrangements and their ability to honour them.

Credit Risk

Credit risk is the possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.Learn more

Credit score

A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual.

Credit scorecards

A credit scorecard is a tool used by lenders to provide a statistical analysis of the risk associated with extending credit to a borrower.

Credit Union

A credit union is a member-owned financial cooperative, controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members.

Credit valuation adjustment

Credit valuation adjustment is the difference between the risk-free portfolio value and the true portfolio value that considers the possibility of a counterparty’s default.

Creeping tender offer

A creeping tender offer involves gradually buying up shares of a target company in the open market, often with the aim of eventually acquiring control.

CROCI

CROCI, or cash return on capital invested, is a financial metric used to evaluate the profitability and efficiency of a company by measuring the cash returns generated on its invested capital.Learn more

Crossed Market

A crossed market occurs when the bid price of a security is higher than the ask price, typically due to timing differences in updating prices or an error, indicating a temporary misalignment in market pricing.

Crossing network

Crossing networks are alternative trading systems that match buy and sell orders from various participants without displaying the orders publicly before execution, often used to minimise market impact.

Crypto Mining

Crypto mining is the process by which new cryptocurrency tokens are created and transactions are verified and added to the blockchain digital ledger.

Learn more

Crypto Whales

A crypto whale describes an individual or entity that holds a large amount of cryptocurrency, capable of influencing market prices through large-scale transactions.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security, making it difficult to counterfeit. It operates on decentralised networks based on blockchain technology.

Learn more

Cryptocurrency fork

A cryptocurrency fork is a change to the protocol of a blockchain network that results in the creation of a new branch, either as a 'soft fork' (backward-compatible) or 'hard fork' (not backward-compatible).

CSI 300 Index

The CSI 300 Index is a market index constituting 300 A-share stocks listed on the Shanghai or Shenzhen Stock Exchanges, representing significant stocks of large enterprises in China.

Cum Dividend

Cum dividend refers to a stock that's sold with the right of the buyer to receive the next dividend. If a stock is purchased cum dividend, the seller forfeits their right to the dividend to the buyer.

Learn more

Curb trading

Curb trading is trading that takes place outside general market regulations. It usually occurs through phones or computers after the official exchanges have closed for the day.

Currency

Currency is a system of money in common use, especially in a nation, where it serves as a medium of exchange, a store of value, and a standard of value.

Currency Hedging

Currency hedging involves the use of financial instruments, like futures contracts or options, to reduce risk by protecting against potential losses in exchange rates.

Currency Pair

A currency pair is the quotation of one currency against another in the foreign exchange market, indicating how much of the quote currency is needed to purchase one unit of the base currency.Learn more

Currency Peg

A currency peg is a policy by which a national government sets a specific fixed exchange rate for its currency with a foreign currency or basket of currencies.

Learn more

Currency risk

Currency risk can affect investors, companies and analysts whenever money moves across borders or assets are valued in more than one currency.

Learn more

Currency Swap

A currency swap is a financial agreement between two parties to exchange principal and interest in different currencies. The parties use a currency swap to hedge against currency risk or to reduce borrowing costs.

Current account and savings account (CASA) ratio

A CASA account, or Current Account Saving Account, is a type of bank account that combines the features of both current and savings accounts, offering the flexibility of a current account and the interest earnings of a savings account.

Current asset / Current accounts

Current assets are all assets that a company expects to convert into cash within one year or one business cycle, whichever is longer. Typical current assets include cash, accounts receivable, and inventory.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year. Typical current liabilities include accounts payable, short-term debt, dividends, and taxes owed.

Current yield

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year. Typical current liabilities include accounts payable, short-term debt, dividends, and taxes owed.

Custodial participant

A custodial participant is an entity, often a financial institution, that holds and safeguards a client's securities for safekeeping and also provides various other services, including account administration, transaction settlements, and record keeping.

Cyclical company

A cyclical company is one whose revenue and profits are heavily influenced by the overall economic cycle. These companies do well when the economy is booming but typically perform poorly during recessions.

Cyclical Risk

Cyclical risk is the risk of business impact due to the cyclical nature of an industry, affected by macroeconomic changes such as economic downturns or upturns.

Cyclical stocks

Cyclical stocks are stocks whose price is affected significantly by economic changes, with performance closely tied to the overall economy's condition.