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Know your bid price from your ask price? Your long from your short? Your tick and tie from your tombstone? Good stuff. You're ready to start decoding some of the more complex terms that are used in the industry. And once you've mastered these, you'll feel like an industry insider.

Capital Structure

What it means: How a firm finances its business in reference to the amount of debt and equity used
When you'll hear it: While discussing an acquisition

Crowded

What it means: Many investors have already purchased a particular security, thereby limiting price movements due to low availability
When you'll hear it: When a stock hovers at its 52-week high price

Headwind

What it means: Macro industry trends that will likely affect price movements of a security in a negative direction
When you'll hear it: When discussing a research report

Margins

What it means: Profit divided by revenue, expressed as a percentage
When you'll hear it: Listening to a CFO discuss company financial performance

Market cap

What it means: Market capitalization, which is the total dollar value of a company's shares outstanding
When you'll hear it: When evaluating a stock

Reservation Price

What it means: Price under which a seller won't complete a deal
Where you'll hear it: On the phone with a PM

Tailwind

What it means: Macro industry trends that will likely affect price movements of a security in a positive direction
When you'll hear it: Reviewing a research report with a client

VIX

What it means: The Chicago Board Options Exchange Volatility Index, used to measure the market's anxiety level
Where you'll hear it: In market update conversations between salespeople and clients