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 (principal amount) plus interest

Dividend: a portion of company profit given by a company to shareholders to encourage them to buy stock/ 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 ETF is an investment fund traded on stock exchanges as a sort of basket/package of multiple different stocks and bonds at once  

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