Trading Glossary Explained

Trading is a complex process, which includes many actions that a person unfamiliar with the financial world will find puzzling. Once you launch your trading career, you will be swamped with trading terms whose meaning you will not know. You will not immediately grasp how the market value of a business differs from its book value. Nor will you understand what CPI stands for and how it is different from IPO, unless we supply you with a glossary of all confusing terms that you meet in a trading business.

To help you avoid confusion, we have compiled a comprehensive glossary of financial terms used in the markets. All trading glossary is presented in our glossary in alphabetical order and is explained with linguistic precision. Any financial term that sounds baffling at you now will become crystal clear once you read its definition in our glossary below.

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There are currently 5 names in this directory beginning with the letter J.

J-Curve

This term refers to a trendline showing an initial loss immediately followed by a large gain. In a chart, this pattern of activity follows the shape of a capital letter “J”.

January Effect

This term refers to a seasonal increase in stock prices during January. This increase in prices is attributable to an increase in buying, which follows the decrease in prices typically happening in December, when investors prompt a sell-off.

Job Market

This is the market where employers look for employees and employees search for jobs. Also known as the labor market, this is not a physical place but a concept demonstrating the interplay between different labor forces.

Joint-Stock Company

This is a business owned by its investors, with each of them owning a share based on the amount of acquired stocks. Usually, joint-stocks companies are too expensive for an individual to fund. The owners of such businesses share in their profits.

Jurisdiction Risk

This is the risk that arises when operating in a foreign jurisdiction. Usually, people face such risk when they do business or lend money in another country.