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1586 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

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Geometric mean

Risk & psychology
Also called: Geometric average

The per-period rate that, compounded over the whole series, reproduces the actual outcome.

In plain terms

The number that describes what happened to the money, as opposed to the arithmetic mean, which describes a typical single period. The two are equal only when every period return is identical.

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Indian stock market glossary · Market Vidyalaya