Common Acronyms of the Investment World – Part 2

A few blogs ago, we went through a list of some of the most common financial terms. As a financial advisor, you are likely familiar with these terms. However, with the way the financial industry continues to change, there always seem to be one more acronym to learn. Today, we want to explore a few more acronyms and what they mean.

OTC

This acronym stands for over-the-counter. It is used to refer to a trade that was made outside of formal trading. It has also been referred to as off-exchange trading.

PMI

This stands for purchasing managers index. This index is used to indicate the health of certain economic sectors.

RSI

This acronym stands for relative strength index. It’s a very important tool for technical analysis because it helps assess the momentum of assets. When you know an asset’s momentum, you know if it’s in oversold or overbought territory.

SEC

When you hear someone use this acronym, they’re referring to the U.S. Securities and Exchange Commission. This is a government agency that regulates markets. Its job is to protect U.S. investors and oversee acquisitions and mergers.

SET

This acronym stands for secure electronic transaction. It’s protocol for credit card payments that is secure. It keeps things secure by blocking the details of the credit card information, preventing merchants, electronic thieves, and hackers from stealing information.

SIPS

Financial advisors are familiar with this term because it stands for structured investment products. These are investments designed to fulfill an investor’s needs by customizing a product mix to match their risk tolerance. AlphaDroid’s software is designed to facilitate smart decisions and make sure the client’s investments stay safe.

UCCC

This is the Uniform Consumer Credit Code. It guides the use and purchase of any type of credit product. It was created to protect consumers, who sometimes are taken advantage of by fraudulent companies and misinformation.

VIX

When people use VIX, they’re talking about the Chicago Board Options Exchange Volatility Index. The VIX is a measure that can track volatility on the S&P 500 index. It is the most well-known volatility index.

VER

This acronym stands for voluntary export restraint. It is a restriction on how much of a certain good that an exporting country can export to another country. The exporting country self-imposed the limit, usually at the request of the importing country in order to protect its own businesses.

WTI

This stands for West Texas Intermediate. Often called Texas Light Sweet, it is an oil benchmark central to commodity training, and is one of the three big oil benchmarks used in trading. The other two are Dubai/Oman and Brent crude.

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