What a limit order vs market order does — limit sets a price, market executes immediately

What an automated market maker (AMM) does — uses a formula instead of an order book for trading

AMM employs a liquidity pool and a mathematical formula to set prices and facilitate trades

What supply and demand equilibrium is — the price where quantity supplied equals quantity demanded

Price at which market clears, Qs = Qd

What implied volatility tells you — the market's expectation of future price movement

Implied volatility indicates the market's anticipated future price fluctuation of an asset

What anchoring does in investing — the purchase price biases your sell decision

Anchoring bias causes investors to base sell decisions on initial purchase price rather than current market value

What a stock split does — increases share count while proportionally reducing price

Stock splits increase the number of shares, proportionally decreasing the price per share

What the efficient market hypothesis claims — prices reflect all available information

Efficient Market Hypothesis: Prices incorporate all publicly available information