# Investopedia API: Define finance term > Explains a finance, business, or investing term using its Investopedia dictionary article. Unofficial. Not affiliated with or endorsed by Investopedia. - Page: https://fous.com/methods/investopedia.com/define-term - Method: `investopedia.com/define_term`, version 1 - Website: investopedia.com - Returns: term, short definition, full explanation, key takeaways, example, related terms, author, updated date, article link - Effect: read (it gets data and changes nothing) - Sign-in: none needed - Cost: 1 credit per completed run (1¢ with pay as you go); failed runs are free - Verified: Nov 2, 2026 ## Inputs | Field | Type | Required | In the run below | Description | |---|---|---|---|---| | `term` | string | yes | `"P/E ratio"` | Finance, business, or investing word or phrase to define, for example EBITDA. | ## Output From a run on Oct 23, 2026, shortened. Its input: ```json { "term": "P/E ratio" } ``` Its output: ```json { "term": "Price-to-Earnings (P/E) Ratio", "author": "Jason Fernando", "example": "Let's clarify this with an example, looking at FedEx Corporation ( FDX ). We can calculate the P/E ratio for FDX as of Aug. 8, 2025, when the company's stock price closed at $228.05. The company's EPS for the TTM was $16.81. Therefore, FDX's P/E ratio was as follows: $228.05 / $16.81 = 13.57 Let's l…", "article_link": "https://www.investopedia.com/terms/p/price-earningsratio.asp", "key_takeaways": [ "The price-to-earnings (P/E) ratio is the proportion of a company's share price to its earnings per share (EPS).", "A high P/E ratio could mean that a company's stock is overvalued or that investors expect high growth rates.", "Companies with no earnings or that are losing money don't have a P/E ratio because there's nothing to put in the denominator." ], "related_terms": [ { "link": "https://www.investopedia.com/terms/b/businesscycle.asp", "name": "business cycles" }, { "link": "https://www.investopedia.com/terms/f/forwardpe.asp", "name": "forward P/E" }, { "link": "https://www.investopedia.com/terms/t/trailingpe.asp", "name": "trailing P/E" } ], "full_explanation": "What Is the Price-to-Earnings (P/E) Ratio?\n\nThe price-to-earnings (P/E) ratio measures a company's share price relative to its earnings per share (EPS). Often called the price or earnings multiple, the P/E ratio helps assess the relative value of a company's stock. It's handy for comparing a company…", "short_definition": "The price-to-earnings (P/E) ratio measures a company's share price relative to its earnings per share (EPS). Often called the price or earnings multiple, the P/E ratio helps assess the relative value of a company's stock.", "last_reviewed_or_updated_date": "2026-04-15" } ``` ## Run it From code, with a Fous API key in `FOUS_API_KEY`; the answer's `data` holds the output: ```bash curl https://api.fous.com/v1/runs \ -H "Authorization: Bearer $FOUS_API_KEY" \ -H "Content-Type: application/json" \ -d '{"method":"investopedia.com/define_term","input":{"term":"P/E ratio"}}' ``` From an AI agent connected to the Fous MCP server: its `run` with the same method and input. To connect one, give it `set up https://fous.com/SKILL.md`. ## Ask your agent - What does EBITDA mean in plain language, and how is it calculated? - Can you explain what a bear market is and give me an example? - I keep hearing the term dividend yield on financial news. What does it mean? - Look up the definition of liquidity ratio on Investopedia and summarize the key points. - What is the difference between a Roth IRA and a traditional IRA, in simple terms? ## Input schema ```json { "type": "object", "required": [ "term" ], "properties": { "term": { "type": "string", "description": "Finance, business, or investing word or phrase to define, for example EBITDA." } }, "additionalProperties": false } ``` ## Output schema ```json { "type": "object", "required": [ "term", "short_definition", "full_explanation", "key_takeaways", "example", "related_terms", "author", "last_reviewed_or_updated_date", "article_link" ], "properties": { "term": { "type": "string", "description": "Term as titled in the article." }, "author": { "type": [ "string", "null" ], "description": "Article author, if credited." }, "example": { "type": [ "string", "null" ], "description": "Article example, if one is present." }, "article_link": { "type": "string", "description": "Link to the Investopedia article." }, "key_takeaways": { "type": "array", "items": { "type": "string" }, "description": "Main points from the article." }, "related_terms": { "type": "array", "items": { "type": "object", "required": [ "name", "link" ], "properties": { "link": { "type": "string" }, "name": { "type": "string" } }, "additionalProperties": false }, "description": "Up to 10 linked terms from the article." }, "full_explanation": { "type": "string", "description": "Plain-text article explanation, up to 4000 characters." }, "short_definition": { "type": "string", "description": "The first one or two sentences of the article's definition." }, "last_reviewed_or_updated_date": { "type": [ "string", "null" ], "description": "Last updated date, YYYY-MM-DD, if available." } }, "additionalProperties": false } ``` ## See more - [Dictionary.com API: Define word](https://fous.com/methods/dictionary.com/define-word.md): Looks up an English word on Dictionary.com and returns its pronunciation, audio link, numbered definitions per dialect with examples, word origin and first recorded use. - [Urban Dictionary API: Define slang term](https://fous.com/methods/urbandictionary.com/define-slang.md): Gets Urban Dictionary definitions for a slang word or phrase in the site's order, with examples, votes, author and date. Returns an empty list when the term has no definitions. - [Merriam-Webster API: Define word](https://fous.com/methods/merriam-webster.com/define-word.md): Looks up a word or phrase in Merriam-Webster's dictionary and returns its pronunciation, definitions, examples and word history. - [Cambridge University Press API: Define word](https://fous.com/methods/dictionary.cambridge.org/define-word.md): Looks up a word or phrase on Cambridge Dictionary and returns its ordered meanings, example sentences, grammar labels and UK and US pronunciations. - [Finviz API: Get stock snapshot](https://fous.com/methods/finviz.com/get-stock-snapshot.md): Get a delayed US-listed stock snapshot from its ticker or company name. Analyst labels summarize Finviz's 1-5 mean score; dividend yield uses the estimated dividend when available. Missing metrics return null. - [Investing.com API: Get government bond yields](https://fous.com/methods/investing.com/get-bond-yields.md): Gets current government bond yields from Investing.com's world government bonds table, optionally filtered by country and maturity term. - [Stock Analysis API: Get financial statements](https://fous.com/methods/stockanalysis.com/get-financial-statements.md): Looks up a company by name or ticker on Stock Analysis and returns its annual or quarterly income statement, balance sheet, or cash flow statement for the free periods. - [Etymonline API: Get word origin](https://fous.com/methods/etymonline.com/get-word-origin.md): Looks up an English word on Etymonline and returns its origin entries, one per part of speech, with the first date mentioned and cross-referenced words.