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Lord Jesus Christ Says...

For what shall it profit a man, if he gain the whole world, and suffer the loss of his soul? Jesus Christ

22 Mar 2016

STOCK MARKET- FREQUENTLY ASKED QUESTIONS.


Hi Friends, Please read the following frequently asked answers.

1.       EBITDA                    : Earning Before Interest Taxes, Depreciation and     Amortization.  It means: Gross Profit
                                   Minus Operating Expenses.

2.       EBIT                        : Earning Before Interest and Tax.

3.       EAT                         : Earnings After Tax

4.       CAGR                      : Compound Annual Growth Rate




5.       Balance Sheet       : A financial statement showing a Company’s assets, liabilities, and shareholders’                 
                                  Equity at a given rate.

6.       Bear Market         : A Stock Market where the majority of investors are selling (bears), which causes a
                                 Prolonged decline in equity price, the opposite of bull market.

7.       Book Value           : The value recorded on the balance sheet at which the assets would be valued at if the
                                 Company were liquidated.

8.       Bullion                   : Metal such as gold , that is formed into bars

9.       Call Option            : The right to buy a specific number of shares at a specific price by a fixed date.  The
                                  Buyer pays a premium for the right.

10.   Call                         : An option contract that gives the holder of the right to buy a specified number of
                                  Shares by a fixed rate. 

11.   Capital Gain:        : When a security is sold for more than the purchase price, For non registered
                                  Securities, 50% of gain is added to income and taxed the inverstors’ Marginal Tax rate

12.   Capital Stock        :All the Shares of a Company.

13.   Cash Flow             : The inflows and outflows of cash in a company.

14.   Consolidated Financial Statement: Financial Statement that present the position of a present company,
                                 And its subsidiaries as a whole.

15.   Current Assets    : Cash and other assets that will be converted to cash in the normal course of business
                                 within one year.

16.    Debt Financing   : Method of raising capital whereby companies borrow money from a lending
                                 Institution.

17.   Derivative            : A type of financial instrument whose value dependent on some underlying financial
                                 asset , commodity or other investment.

18.   ETF                        : An investment vehicle that trades on a stock exchange and holds stock or bonds.  It
                                 Trades at roughly the same price as the net asset value of its underlying assets.

19.   FISCAL YEAR        : A Company’s Accounting Year

20.   Fundamental Analysis: Security Analysis that is based on fundamental facts about a company and an
                                 Analysis of economic conditions that affect the Company’s business.

21.   IPO                         : Initial Public Offering.  The first sale of shares to the Public, usually by subscription
                                 from a group of investment dealers.

22.   Long Position      : Securities owned outright or carried on margin.

23.   Net Worth           : The difference between total assets and liabilities.

24.    Port Folio            : A list of financial assets.

25.    Private Placement: A direct offering  of securities to a limited number of buyers usually institutions.

26.    Short Selling       : The borrowing of stock from a broker in order to sell it in the hope that it may be
                                 purchased at a lower price later on.

27.   Technical Analysis: A method of forecasting prices that examines historical market data to predict
                                  future movement in the market.

28.   Dividend Yield     : The current annual dividend rate expressed as a percentage of the current market
                                 Price of the week.

29.   ROCE                     : Return on capital employed.

30.   PEG                        : Price Earning to Growth.


Thanking you,                                                                 See You Later.            


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