As we return to our stock term definitions, we come to another integral term: Return on Invested Capital (ROIC). This term can help investors determine if a company is using its money well to churn out returns. However, the ROIC is a little deeper than this; to really grasp ROIC in its entirety, we have to define "capital" and "cost of capital." Let's look at each of these and at ROIC a little more in depth.

From the Top: Capital

When it comes to general investment terms that could make a difference to you as a stock market investor, day trading is one term that should be defined. This term very well could affect you, and it might come with a few rules and regulations. So let's take a look at day trading.

What is Day Trading?

We continue our finance definitions series with our focus on stock-related terms, and we now come to the phrase "periods of illiquidity." This term is rather simple, so we'll get a little break from our intense stock terms. Even so, the phrase is an important definition to know and keep in mind as you invest, so let's dive right into the definition!

The Basic Definition

As we continue our financial definitions series, we come to two related terms: the trade date and the settlement date. These two dates define when you purchase a stock and when you take ownership. Confusing? Well, let's take a closer look.

Trade Date

Let’s take a little break from intense stock definitions to focus on the simplicity of a good ol’ finance definition: the commodity. Although this term is used in stocks as well as in general finance, it’s really an easy term that can be used to further your education on both stocks and finance. So let’s jump right in!

What is a Commodity?

On our trek through finance definitions, we cannot bypass a major influencing factor: economic cycles. These cycles have occurred since our economy began, and they are expected to continue well into the future. So let's take a closer look at economic cycles, at how they affect you and at what to do about them.

What are Economic Cycles?

Here at MomVesting, we’ve started looking at the ins and outs of bankruptcy from an easier-to-understand, simple approach. So far, topics that have been touched on include assets, debts (including secured and unsecured), creditors and debtors. Today, we’ll touch on another important aspect of bankruptcy: exemptions.

What’s In It For Me?

There are some pairings that just go together. One would just not be the same without the other. Mickey and Minnie. Peanut butter and jelly. Captain and Tenille. Puts and calls. What? (Insert that neat little record-screeching sound they play in a movie when all activity comes to a halt here.) Okay, so they might not be the first things that come to mind when famous word pairings are mentioned, but in the world of investing, puts and calls definitely go together like peas and carrots.

Options, Options, Options

As we continue our definitions series with an in-depth look at the terms on stock balance sheets, we come to the definitions that comprise the asset turnover ratios. These include receivables turnover, inventory turnover, fixed assets turnover, and the average collection period. This long list of definitions may seem intimidating, but the asset turnover ratio definitions aren't so bad. Let's take a closer look at them.

Asset Turnover Ratios

When beginning to invest in the stock market, there are a ton of terms to wade through before you can even begin to make a decision on which company is the best fit for your investing needs. Thankfully, even though these financial terms may seem intimidating, they really aren't all that difficult to understand. Let's take a look at one of them: Return on Equity.

Return on Equity