Investing basics
stocks · ETFs · indexes · diversification
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Understand the number before you use it
Reviewed 08-21-2026
GDP growth
1.5% SAAR
Q2 2026 advance estimate · BEA
Period Q2 2026 advance · BEA
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Each guide explains what a figure is, how to read its period and what it cannot tell you.
Plain-English definitions · Primary sources · Dated figures
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Market mechanics
bid · ask · orders · trading objects
Company analysis
revenue · EPS · cash flow · filings
Options & futures
contracts · expiration · settlement · risk
Margin & leverage
exposure · collateral · liquidation risk
Bonds & yields
prices · coupons · duration · the curve
Economy
Fed · GDP · inflation · employment
From figure to method
GDP growth
1.5% SAAR
Q2 2026 advance estimate · BEA
Period Q2 2026 advance · BEA
Method
SAAR is a pace, not a total
A seasonally adjusted annual rate takes a quarter-to-quarter or month-to-month change, strips the usual seasonal pattern, and states it as if that pace lasted a year.
Reference library
Practical guides, organized by use
16 complete guides
Investing basics
stocks · ETFs · indexes · diversification
Investing basics
Stocks, ETFs and indexes are different objects
A stock is an ownership interest in one company.
Investing basics
Diversification reduces concentration; it does not remove risk
Diversification means spreading exposure across holdings whose risks are not identical.
Market mechanics
bid · ask · orders · trading objects
Market mechanics
Bid, ask and order type shape how a trade is attempted
The bid is the highest displayed price a buyer is offering; the ask is the lowest displayed price a seller is offering.
Company analysis
revenue · EPS · cash flow · filings
Company analysis
Revenue, EPS and guidance answer different earnings questions
Revenue is the top-line amount recognized from a company’s activities under its accounting policy.
Company analysis
The three financial statements describe one business from different angles
The income statement records revenue and expenses over a period.
Options & futures
contracts · expiration · settlement · risk
Options
An option is a time-limited contract, not a cheaper share
A call gives its holder a contractual right to buy the underlying at the strike price before or at expiration, subject to the contract’s terms.
Futures
A futures contract defines delivery or cash settlement on set terms
A futures contract is a standardized agreement traded on a regulated venue to buy or sell an underlying exposure under specified terms at a future date.
Margin & leverage
exposure · collateral · liquidation risk
Margin & leverage
Margin funds a position; leverage magnifies its movement
Margin is collateral or borrowed funding used to establish and maintain an exposure.
Bonds & yields
prices · coupons · duration · the curve
Bonds & yields
Bond prices and yields usually move in opposite directions
A bond promises contractual cash flows subject to the issuer’s ability to pay.
Economy
Fed · GDP · inflation · employment
Method
Federal funds target range
The federal funds rate is the overnight rate banks charge each other for reserve balances.
Sources
statement vs minutes
The FOMC statement is the decision document.
Method
what a dissent is
A dissent is a named member’s recorded preference against the action the Committee took.
Method
Advance, second, third — three GDPs for one quarter
BEA does not publish one GDP number for a quarter and walk away.
Method
PCE and CPI are not two names for one index
The PCE price index is BEA’s chain-type index of prices paid for personal consumption.
Method
SAAR is a pace, not a total
A seasonally adjusted annual rate takes a quarter-to-quarter or month-to-month change, strips the usual seasonal pattern, and states it as if that pace lasted a year.
Method
A CMT yield is interpolated. A 10s–2s gap is subtraction.
A constant-maturity Treasury yield is a point read off Treasury’s official par curve at a fixed tenor.