Investing

“The trading of a public company’s stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company.” Source: Gabriel Weinberg's Mental Models I Find Repeatedly Useful

“A type of defensive tactic used by a corporation’s board of directors against a takeover. Typically, such a plan gives shareholders the right to buy more shares at a discount if one shareholder buys a certain percentage or more of the company’s

“Allows one to estimate what the exchange rate between two currencies would have to be in order for the exchange to be at par with the purchasing power of the two countries’ currencies.” Source: Gabriel Weinberg's Mental Models I Find Repeatedly Useful

“A monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly).” Source: Gabriel Weinberg's Mental Models I Find Repeatedly Useful

“Asset prices fully reflect all available information…Investors, including the likes of Warren Buffett, and researchers have disputed the efficient-market hypothesis both empirically and theoretically.” (related: alpha) - Gabriel Weinberg "The efficient-market hypothesis (EMH) is a theory in financial economics that states that

“A sustained increase in the general price level of goods and services in an economy over a period of time.” (related: real vs nominal value, hyperinflation, deflation, debasement) Source: Gabriel Weinberg's Mental Models I Find Repeatedly Useful

“Typically, high-risk trades that are almost akin to gambling fall under the umbrella of speculation, whereas lower-risk investments based on fundamentals and analysis fall into the category of investing.” Source: Gabriel Weinberg's Mental Models I Find Repeatedly Useful

“Preferred stock is a type of stock which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.” Source: Gabriel Weinberg's Mental Models I