Glossary

The lowest price a seller will accept.

Dividing investments among asset classes like stocks and bonds.

Revenue divided by average total assets.

A measure of a stock's volatility relative to the market.

The highest price a buyer will pay.

The difference between bid and ask prices.

Stock in a large, reputable, stable company.

An account for buying and selling securities.

Profit from selling an investment at a higher price than you paid.

Days to convert working capital investments back to cash.

Cash and equivalents divided by current liabilities.

A fee charged per trade by a broker.

Standard stock with voting rights.

The effective interest rate a company pays on its debt.

The return required by equity investors.

Current assets divided by current liabilities.

Average days to sell inventory.

Average days to pay suppliers.

Average days to collect receivables.

Total debt divided by EBITDA.

Total debt divided by shareholders' equity.

Valuation method based on projected future cash flows.

Spreading investments to reduce risk.

A payment of company profits to shareholders.

EPS divided by dividend per share.

Dividends paid divided by net income.

Annual dividends divided by stock price, shown as a percentage.

Investing fixed amounts regularly regardless of price.

Framework decomposing ROE into profitability, efficiency, and leverage.

Net income divided by shares outstanding.

EPS divided by stock price, expressed as percentage.

EBITDA divided by revenue, as a percentage.

Measures how effectively a company uses resources.

Total company value including debt minus cash.

Percentage change in earnings per share.

Ownership interest in a company; stocks.

The extra return demanded for holding stocks over risk-free bonds.

Enterprise value divided by EBITDA.

A fund that trades on exchanges like a stock.

Annual fee charged by a fund as a percentage of assets.

Total assets divided by shareholders' equity.

P/E ratio using estimated future earnings.

Operating cash flow minus capital expenditures.

Premium paid for an acquisition above the fair value of assets.

Gross profit divided by revenue, as a percentage.

Stock in a fast-growing company.

A fund that tracks a market index.

A company's first sale of stock to the public.

An organization that invests money on behalf of others.

EBIT divided by interest expense.

The calculated 'true' value of an asset.

Cost of goods sold divided by average inventory.

An order to trade only at a specific price or better.

How easily an asset can be traded without affecting its price.

The total market value of a company's shares.

A firm that provides liquidity by buying and selling at quoted prices.

An order to trade immediately at current price.

A major electronic stock exchange focused on tech.

Net income divided by revenue, as a percentage.

Operating profit minus taxes on that profit.

The world's largest stock exchange by market cap.

Operating income divided by revenue, as a percentage.

P/E ratio divided by expected earnings growth rate.

Your complete collection of investments.

Stock with priority dividends but limited voting rights.

Stock price divided by book value per share.

Stock price divided by earnings per share.

Market cap divided by annual revenue.

Liquid assets divided by current liabilities.

Valuing a company by comparing it to similar companies.

An individual investor trading for personal accounts.

Net income divided by total assets.

Net income divided by shareholders' equity.

After-tax operating profit divided by invested capital.

Percentage change in revenue from prior period.

Your capacity to handle investment losses.

The return on a zero-risk investment (e.g., US Treasuries).

A single unit of stock ownership.

A person or entity that owns shares of stock.

A security representing ownership in a corporation.

A marketplace for buying and selling securities.

An order that triggers at a specific price to limit losses.

A stop order that becomes a limit order when triggered.

Maximum growth rate achievable without external funding.

The value of a company beyond the forecast period.

A unique abbreviation identifying a stock on an exchange.

Combined return from dividends and capital gains.

The final transfer of securities and payment after a trade.

The number of shares traded in a given period.

Stock trading below its perceived intrinsic value.

The degree of price fluctuation in a security.

The average cost of a company's funding (debt + equity).

Current assets minus current liabilities.