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| annual report | Booklist issued after a company's fiscal year completed which describes how the business performed in the last year. (The report shows income earnings, assets, and liabilities. Required to be issued to share holders). |
| balance sheet | A financial report which shows the company's assets and liabilities at the close of any given month. |
| income statement | A financial statement showing the revenue and expenses for a fiscal period. |
| bear market | Stock market that experiences a general decline in prices of stock. Not all stocks experience a decline in value, but most do. |
| Board of Directors | A group of people elected by the stockholders of a corporation to set the policies for the corporation. |
| Bull market | Stock market experiences a general rise in prices and stock trading volume for shares over a period of time. |
| Closing price | The last price for a stock traded at the end of the trading day or session on an exchange. |
| Dow Jones | The average price of 30 selected industrial stocks, used as a measure of general market trends. |
| Dividend | payment from profits by a company's Board of Director's to shareholders. |
| IPO | A stock or bond sold by a corporation for the first time. |
| Penny stock | Shares of companies which trade under $1. |
| Price to earnings ratio | Ratio between the market price of a stock and the profits per share over the last year. (To compute the P-E ratio, divide the earnings into the market price of stock). |
| rally | A rapid increase in the prices of stock after a period of decline in the stock market. |
| Return on investment | Percent return on profits before the payments of taxes. |
| Securities and Exchange Commission | US government agency which oversees the operations of the stock markets which trade stocks, bonds, and other types of securities. |
| stock split | A division of shares of a company into a larger number of shares. A 2 for 1 split allows a shareholder to double the number of shares but worth one half of their previous value. |
| yield | The financial return on stock on a per share basis expressed as a percent of the stock market value. To compute the yield, divide the annual dividend per share by current market price of the stock. |
| Revenue | Also known as sales, (quantity of good/service * price of good/service) |
| current ratio | measures a company’s ability to pay off short-term liabilities with current assets: |
| expense | cost required for something, money spent |
| capital appreciation | an increase in the market price |
| return on assets ratio | measures how efficiently a company is using its assets to generate profit |
| earnings per share ratio | measures the amount of net income earned for each share outstanding |
| Price to earnings ratio | measures the relationship between a company's stock price and its earnings per share of stock issued |
| earnings per share | portion of a company's profit that is allocated to each outstanding share of common stock, |
