Pit: A specific location on the trading floor of an exchange designated for the trading of a specific option class or stock.

Capital Gain: The profit realized when a capital asset is sold for a higher price than the purchase price.

Capital Loss: The loss incurred when a capital asset is sold for a lower price than the purchase price.

Capitalization: Refers to the current value of a corporation's outstanding shares in dollars.

Capitalization-Weighted Index: A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index.