OFP vocab

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5 Terms

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Stock

A share representing ownership in a company.

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Bond

A fixed-income security representing a loan from an investor to a company or government.

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Market Capitalization (Market Cap)

The total value of a company's outstanding shares.

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Price-to-Earnings Ratio (P/E Ratio)

A valuation metric comparing a company's stock price to its earnings per share.

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Dividend

A portion of a company's earnings distributed to shareholders.