Stock Valuation Lecture Notes

A set of flashcards designed to cover key concepts and vocabulary related to stock valuation based on the provided lecture notes.

Stock Quote

A summary of the current price and trading information for a particular stock.

Dividend Yield

The annual dividend payment divided by the stock price, indicating the return an investor can expect on their investment.

Preferred Stock

A class of stock that typically does not have voting rights but has a higher claim on assets and earnings than common stock.

Common Stock

A type of security that represents ownership in a corporation and entitles the shareholder to vote on company matters and receive dividends.

Price to Earnings (PE) Ratio

A ratio that measures a company's current share price relative to its per-share earnings.

Valuing Preferred Stock

The process of determining the worth of preferred shares based on their expected dividends.

Constant Growth Model

A method used to value a stock by assuming that dividends will grow at a constant rate indefinitely.

Present Value of Dividends

The current worth of future dividend payments, discounted back to the present value.

Proxy Voting

The process by which a stockholder can delegate their voting rights to another party.

Capital Gains Yield

The price appreciation of an investment over a period, which contributes to the investor's total return.

Dividend Growth Model

A method for estimating the value of a stock by assuming constant growth in dividends.

Market Price

The current price at which a stock is trading on the market.

Electronic Communications Networks (ECNs)

Automated systems that match buy and sell orders for securities, allowing trades to occur without a traditional stock exchange.

NYSE

New York Stock Exchange, the largest stock exchange in the world where securities are traded.

Specialists

Market participants on the NYSE responsible for maintaining fair and orderly markets for specific stocks.