Investment Glossary

Plain-language definitions of P/E ratio, leverage, short selling, FOMC, halving and more — essential terms for stock, crypto, and forex investors.

Base interest rate is the policy rate set by a central bank for lending to commercial banks. CPI measures inflation — a key input for rate decisions. FOMC sets US rates 8 times a year. P/E ratio (price ÷ earnings per share) is the most-used equity valuation metric. Leverage lets you invest more than your capital using borrowed funds; short selling lets you profit from falling prices. The Bitcoin halving cuts mining rewards in half every ~4 years, reducing supply.