Untitled Flashcards Set

Stock

A share of ownership in a company, also known as an equity.

Bond

A loan that an investor makes to a borrower like a business or a government with the expectation of being paid back the original amount plus interest.

Dividend

A portion of company profit given by a company to shareholders to encourage them to buy stock or not sell.

Market Cap

Total value of a company's outstanding shares, measure of size and public worth.

P/E ratio

Compares company stock price to earnings per share (EPS) which helps investors decide whether a stock is a buy or sell; 20-25 is good.

ETF

An exchange traded fund that is an investment fund traded on stock exchanges as a sort of basket/package of multiple different stocks and bonds.

IPO

Initial public offering, when a private company first sells public shares of stock.

Capital Gain

Profit earned on sale of stock/bond/etc after it has increased in value over time.

EPS

Earnings per share measures how much money a company makes per share of stock, allowing investors and analysts to evaluate a company’s profitability. Higher is better.

KPI

Key performance indicators, data, sales, etc.