And without faith it is impossible to please God, because anyone who comes to him must believe that he exists and that he rewards those who earnestly seek him.

22 Mar 2016


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

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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