|
Take Your Stock Business Online
If you're interested in online stock information, contact us.
Monitoring your stocks with the internet is a very efficient way to trade
stocks.
Gone are the newspaper days. If you have any questions about the following,
contact us.
Annual Report
A booklet sent by
companies to shareholders once a year. It depicts the company operations and
describes earnings, balance sheets, profits, sales and other important facts
about the company. It lists detailed descriptions of the company business.
Ask
The lowest price
an investor accepts to sell stock or, the quoted price an investor can buy
shares of stock for.
Asset
Allocation
Allocating your
investment assets over a number of investments, (stocks, mutual funds, bonds,
money market account, etc). Note: most mutual funds consist of several stocks,
so they are already asset allocated.
Bid
The highest price
an investor will pay to buy a security, or the price an investor can sell shares
of stock for.
Blue Chip
Stocks
Consist of the
oldest most continuously profitable companies, some of which pay a dividend.
Some companies are more that 100 years old. These are considered some of the
lowest risk stocks, based on their history.
Beta
Measures the
volatility of a share of stock. A beta higher than one is more volatile; a beta
lower than one is less volatile. The S&P 500 index beta is one.
Book Value
A company's total
assets minus intangible assets and liabilities, such as debt.
Commission
The fee an
investor pays a broker for buying or selling a security.
Current Yield
The price of a
stock dividend.
Cyclical Stock
A Company whose
stock price is closely in line with the cyclical ups and downs of the general
economy.
Dividend
Part of the
company's profit paid to shareholders.
Dow 30
Dow Jones
Industrial Average (DJIA), 30 of the best Blue Chip companies on the stock
exchanges. The average is used to gauge market performance. See Dow 30, at
MsFinancialSavvy.com
Earnings Per
Share (EPS)
Equals the profit
divided by the number of shares of the stock.
Exchanges
The three major
exchanges where stocks are traded in the U.S. are the: NYSE - New York Stock
ExchangeNASDAQ - National Association of Securities DealersAMEX - American Stock
Exchange
Growth Stock
The stock of a
company that has the potential to increase consistently over a long period of
time.
Initial Public
Offering (IPO)
The first time
the company is traded on the stock exchange. A prospectus is issued to read
about its risk before investing.
Insiders
The board of
directors and officers of a company. It can also be someone who has a large
voting share in the company. These insiders are said to possess "insider
information."
Limit Order
Set price at
which an investor can buy or sell a security. The trade must be at or below this
price.
Long Margin
Investor owns the
stock or security. An investor purchases a security "on margin," or with
borrowed money from a broker. Margin is the difference between the market value
of a stock and a loan a broker makes.
Market Cap
Equals the
company's market capitalization. Example: A company has 20 million shares, and
the company's shares are selling for $20; the market cap is $400 million.
Moving Average
An average of a
security's price over a particular time period. Example: The average changes on
a 200-day moving average includes the most current 200 trading days. Moving
averages usually indicate levels of support or resistance for a security.
Number of
Shares
The number of
shares a company has outstanding.
Over-The-Counter (OTC)
Securities not
listed on a stock exchange.
Priced/Earnings
Ratio (P/E)
Is the share
price divided by earnings per share or EPS, for the company's most recent four
quarters.
Relative
Strength(R/S)
Strength of the
stock relative to other stocks in its category. Usually given a comparative
number in major financial news publications.
Return on
Equity (ROE)
Return earned on
a company's common stock investment over a period of time.
Security and
Exchange Commission (SEC)
A federal agency
that regulates the U.S. financial markets.
Shareholders'
Equity
A company's total
assets minus total liability. The net worth is the same thing.
Spread
The difference
between the bid and the ask price of a stock.
Standard & Poor
500
(S&P 500)
Standard and
Poor's 500 best companies
|