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19c3 stock
A 19c3 stock is a stock that is listed on one of the national exchanges after April 16, 1979. The  more...
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ADR
An American Depository Receipt (ADR) is a negotiable, registered certificate representing specific number of corporate stocks in a non-U.S. company.  more...
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aftermarket
The aftermarket, also called the secondary market, is the market in which securities which have already been issued are traded.  more...
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AMEX
AMEX is the American Stock Exchange. AMEX is sometimes called the Curb, a name that refers to its roots  more...
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average daily volume
Average Daily Volume is the cumulative number of shares traded over a given time period, divided by the number of  more...
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balanced fund
A balanced fund is a mutual fund that invests in stocks, bonds, and money market investments (cash). The proportion of  more...
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bellwether
A bellwether stock is a stock that is generally viewed an an indicator of overall market or sector direction. IBM,  more...
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bid
In practical terms, the bid is the available price at which an investor can sell shares of stock. The ask  more...
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bid/ask spread
The bid/ask spread is the difference between the price sellers are asking for and the price that buyers are willing  more...
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Big Board
Big Board is the nickname of the New York Stock Exchange (NYSE). Over 80 percent of U.S. securities are  more...
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Black Friday
Black Friday refers to September 24, 1869. On Black Friday, a group of speculators led by James Fist and  more...
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Black Monday
Black Monday, or October 19, 1987, was the day of the single largest broad decline in the history of US  more...
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Black Tuesday
Black Tuesday refers to October 29, 1929. Black Tuesday occurred five days after the US stock market crash of  more...
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Board of Directors
Board of directors refers to a group of people that are elected by shareholders of a company who make decisions  more...
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book value
Book value has two accounting meanings. Book value is the value of an asset on a balance sheet, which  more...
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broker recommendation
A broker recommendation is an opinion given by a broker regarding the merits of a particular stock. A broker recommendation  more...
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bubble
In markets, a bubble is an extended period of extreme overvaluation. Bubbles occur in stock markets, real estate, commodities and  more...
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call price
The call price is the price at which an issuer of a security can redeem that security. The call  more...
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Capital Asset Pricing Model
Capital Asset Pricing Model (CAPM) is a sophisticated mathematical method of formulating a relationship between expected risk and expected return.  more...
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capitalization
The market capitalization (market cap) of a company is the stock price multiplied by the number of shares outstanding. Capitalization  more...
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Class A Shares
Class A shares of stock are generally thought of as a preferred tier of classified stock. In many companies,  more...
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Class B Shares
Class B shares are a classification of common stock that may or may not have more voting rights than Class  more...
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common stock
Common stock is a security representing a legal claim to a percentage of a company's earnings and assets. Holders of  more...
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composite
A composite, or composite index, is an aggregation of components to produce a broad statistical measure. A stock index, for  more...
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conference call
A conference call refers to investors, media and interested parties who call a phone number, usually toll-free, to hear the  more...
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consensus forecast
A consensus forecast aggregates the estimates of security analysts of key market-moving data, particularly a company's quarterly earnings per share  more...
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consensus recommendation
The consensus recommendation is an average of analyst ratings on a stock. Suppose five security analysts follow Acme stock; two  more...
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controlling interest
Controlling interest is simply an ownership status where a corporation or an individual owns fifty percent or more of a  more...
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convertible bond
A convertible bond is a debt instrument that holders can convert into a fixed number of shares at a specified  more...
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corporate stock
Corporate stock is the capital or monetary fund that a company raises through the sale of shares. Shares of  more...
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Crash of 1929
The Crash of 1929 took place from September through November 1929, when the Dow shed over one-third of its value  more...
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Crash of 1987
The Crash of 1987, Black Monday, took place on October 19, 1987. During the Crash of 1987, the Dow  more...
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cumulative dividend
A cumulative dividend is a dividend that, if the company doesn't pay it when it is due, must be paid  more...
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current yield
Current yield is equal to a bond’s annual interest payment divided by its current market price. A bond with  more...
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CUSIP
CUSIP is an abbreviation for Committee on Uniform Securities Identification Procedures of the American Bankers Association. CUSIP numbers are  more...
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cyclical stock
A cyclical stock is one whose profits are highly correlated with the business cycle. When the economy is in expansion,  more...
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date of record
The date of record is the date that determines which shareholders receive dividend payments. On the day a company declares  more...
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DAX 100
DAX 100 is the abbreviation for Deutscher Aktienindex 100, a German price-weighted index of that country's top 100 stocks.  more...
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debt/equity ratio
The debt/equity ratio is a capitalization ratio. The debt/equity ratio equals the sum of company’s bonds plus preferred stock  more...
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defensive stock
A defensive stock is one whose profits are minimally impacted by economic downturns. A defensive stock may be found in  more...
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delayed opening
A delayed opening is the intentional postponement of the opening of trading in a specific security. A delayed opening is  more...
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delist
A public company is said to delist if it ceases trading of its shares on a public exchange. A  more...
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denomination
The word denomination has three distinct but closely related uses in a financial context. First, in a given currency,  more...
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depositary receipt
Depositary Receipt (DR) was created in 1927 to aid US investor who wished to invest in non-US corporations. A depositary  more...
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derivative
A derivative, or derivative security, is an asset whose price is based on the value of an underlying asset.  more...
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Diamonds
DIAMONDS are Exchange-Traded Funds (ETFs) trading on the American Stock Exchange (AMEX). DIAMONDS represent units of beneficial ownership in the  more...
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diluted earnings per share
Diluted earnings per share is earnings per share that fully reflects the impact the firm's dilutive securities (eg, convertible bonds)  more...
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direct purchase program
A direct purchase program allows an investor to buy stock directly from a company, without using a broker. In order  more...
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Direct Stock Purchase Plan
A direct stock purchase plan (DSP) is a company-sponsored program in which the company sells shares of its stock directly  more...
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director
A director is one of a group of individuals elected by a company's shareholders to represent their interests and provide  more...
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distressed security
A distressed security is a security belonging to a company that is under financial distress, such as bankruptcy, restructuring, liquidation,  more...
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diversified investment company
A diversified investment company is an investment fund that adheres to a diversification strategy by investing in a wide array  more...
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dividend
A dividend is a payment by a corporation to its shareholders. Dividend payment may come in different forms, such as  more...
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Dividend Reinvestment Plan
Under a dividend reinvestment plan (also known as a DRIP or a DRP), investors receive stock dividends in the form  more...
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dividend yield
The dividend yield is computed by dividing the annual dividend by the stock price. Older, slow-growth companies usually have a  more...
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DJIA
The DJIA (Dow Jones Industrial Average), also known as the Dow, is the oldest continuing US market index and most  more...
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Dow
The term “Dow” is usually used to mean the Dow Jones Industrial Average, an index of thirty blue chip stocks  more...
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downgrade
A downgrade is a reduction in the rating awarded a debt or equity security. A major credit agency downgrades the  more...
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DRIP
DRIP is the acronym for Dividend Reinvestment Plan. In a DRIP, any dividends paid out by a stock are automatically  more...
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earnings
In everyday speech, earnings is often used interchangeably with income and profits to mean some positive financial increase. In investing,  more...
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earnings multiple
The earnings multiple of a stock, also called the price/earnings (P/E) ratio, is the share price divided by the earnings  more...
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Earnings per Share
A company's earnings per share (EPS) is determined by dividing the company's profits by the number of shares that a  more...
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earnings report
An earnings report is an official document published by a publicly-traded company itemizing earnings, expenses and net profit. An earnings  more...
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earnings surprise
An earnings surprise occurs any time a stock's earnings do not match anticipated earnings. If the stock's earnings are  more...
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earnings yield
The earnings yield is earnings per share divided by the stock price. In the earnings yield computation, trailing 12-month earnings  more...
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EDGAR
EDGAR stands for the Electronic Data Gathering, Analysis, and Retrieval system of the Securities and Exchange Commission (SEC). Since  more...
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Employee Stock Ownership Plan
Employee stock ownership plan (ESOP), also known as stock purchase plan, is a program designed to promote purchasing of company  more...
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Employee Stock Purchase Plan
An Employee Stock Purchase Plan gives employee the opportunity to purchase stock in the company where they work. Many companies  more...
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EPS
EPS is earnings per share, the net income a company makes in a given period for each outstanding share. EPS  more...
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equities
Equities is another name for shares or stocks. To have equity in an asset is to own a piece of  more...
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equity
In business, equity refers to value of ownership. The term equity has a connotation of partial ownership, either because  more...
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equity REIT
An equity REIT is a company which owns a portfolio of income-producing real estate. REIT is an abbreviation of Real  more...
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equity risk premium
Equity risk premium is a premium return of the stock market that it above the rate of Treasury bills. By  more...
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ex-dividend
Ex-dividend means a stock is trading without the rights to a declared dividend. When a company declares a dividend, it  more...
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ex-dividend date
The ex-dividend date is the date on which sellers rather than buyers of a stock have a right to a  more...
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face value
Face value is the nominal, or stated, amount of security. The face value of a bond is the amount the  more...
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Fannie Mae
Fannie Mae, or the Federal National Mortgage Association, is one of the primary purchasers of eligible home loans from issuers.  more...
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Federal Home Loan Mortgage Corporation
The Federal Home Loan Mortgage Corporation (FHLMC) is a public company (NYSE:FRE) chartered by congress in 1970 to stabilize mortgage  more...
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Federal National Mortgage Association
The Federal National Mortgage Association, or Fannie Mae, is one of the primary purchasers of eligible home loans from issuers.  more...
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float
Float, also referred to as free float, is a number of outstanding shares of stock available for trading by the  more...
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fractional share
A fractional share is a fraction of a share or less than one whole share. A fractional share can occur  more...
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FTSE
The FTSE Group (pronounced “footsie”) computes tens of thousands of indices of market performance daily. The most famous stock  more...
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fully valued
A stock that is fully valued is priced at a level that an investor feels reflects its true intrinsic value.  more...
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high-tech stock
A high-tech stock is a publicly traded stock of companies in technology and electronics sectors. High-tech stock corporations are typically  more...
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holder of record
The holder of record is the name which appears on a company's records as the registered owner of stock. The  more...
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in escrow
An item of value is in escrow when that item is transferred to a third party (an escrow agent) for  more...
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insider
Insider is an individual who is purview to corporate information that has not been made public. Any material information not  more...
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intrinsic value
The actual value of a security, as opposed to its market or book value, is the intrinsic value of  more...
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investment company
An investment company is a firm whose business is to invest in securities. An investment company is also known as  more...
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IPO
IPO is an acronym for Initial Public Offering. An IPO is the first sale of shares in a company  more...
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large cap
Large cap is short for large market capitalization, which typically defined as meaning publicly traded companies with a market capitalization  more...
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listing requirements
Listing requirements are the criteria set by a stock exchange to list the stock of a public company on that  more...
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long position
A long position in the stock market means that an investor has purchased a stock with the expectation that its  more...
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majority ownership
Majority ownership is ownership of 50% or more of another company's shares, or sufficient holdings that gives one company control  more...
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majority shareholder
In corporate governance, a majority shareholder is a shareholder that has a majority of the shares of a company.  more...
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market capitalization
Market capitalization is the number of shares outstanding times the stock price. In other words, market capitalization is the dollar  more...
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minority ownership
Minority ownership is ownership of less than 50% of a company's shares, or insufficient holdings to control the company's operations.  more...
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mortgage-backed security
A mortgage-backed security (MBS) is a security based upon a pool of underlying mortgage loans. For instance, 500 thirty  more...
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Mr. Market
Mr. Market is a metaphore created by investor Benjamine Graham. Mr. Market symbolizes Mr. Graham's concepts of fundamental market  more...
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mutual fund
A mutual fund is an investment company designed to pool the funds of smaller investors and place them under professional  more...
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Nasdaq
As the world's largest electronic stock market, Nasdaq executes hundreds of millions of transactions daily. Nasdaq has a history of  more...
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New York Stock Exchange
The New York Stock Exchange (NYSE) is a for-profit organization that enables trading and listing of securities on the stock  more...
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Nifty Fifty
The Nifty Fifty were fifty blue chip stocks that enjoyed strong popularity during the bull market of the late 1960s  more...
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orphan stock
An orphan stock is a stock that is not preferred by investors. It has essentially been abandoned or forgotten.  more...
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OTC Bulletin Board
The OTC Bulletin Board is an automated trading system managed by the National Association of Security Dealers (NASD).  more...
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payback period
In corporate finance, the payback period is a simple measure of the time it takes to recover capital spent on  more...
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PEG ratio
The PEG ratio is a formula used to estimate a stock’s value using its P/E ratio and its future earnings  more...
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preferred shares
Preferred shares are a hybrid form of capital that have some of the qualities of bonds, and some qualities of  more...
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price to cash flow ratio
The price to cash flow ratio is computed as the Stock Price ÷ (Cash Flow ÷ Outstanding Shares). The cash  more...
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price to sales ratio
The price to sales ratio (PSR) is computed as the Stock Price ÷ Sales Per Share. The price to sales  more...
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profit and loss statement
The profit and loss statement (or income statement, or P&L) is one of the key financial statements a company publishes.  more...
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proxy statement
A proxy statement contains information regarding an issue that needs to be voted on at a shareholders' meeting. The Securities  more...
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proxy vote
A proxy vote is a vote by one entity on behalf of another. In investments, shareholders often give company management  more...
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public company
A public company is a company that has issued securities that are now traded on the open market. A  more...
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public offering
A public offering is an invitation to participate in a debt or equity offering that extends to the public.  more...
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quant
On Wall Street, a quant is an expert in quantitative finance. The term has been popularized in the title  more...
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quantitative analysis
Quantitative analysis is a process of disseminating financial data in order to make valid projections regarding the future performance of  more...
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quote
In the financial markets, a quote is the price at which a security is trading, has recently traded, or both.  more...
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rating service
A rating service is an organization that provides assessments of various entities for an interested audience, such as investors.  more...
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Return on Assets
Return on assets is net income divided by total assets. Thus if net income is $100,000 and total assets are  more...
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Return on Equity
Put simply, return on equity is net income divided by owners equity. Because it does not include creditors capital, the  more...
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reverse split
A reverse split is a reduction in the number of shares outstanding accompanied by an equivalent increase in share price.  more...
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sentiment
Sentiment is a measure of the bearishness or bullishness of market participants. Major market turning points can be accompanied by  more...
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shareholder
A shareholder is an individual or organization owning stock in a company. Pension funds and mutual funds are examples of  more...
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shareholder of record
The shareholder of record is the person named on the company's books as owning one or more shares of that  more...
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stock
Stock is a security issued in the form of shares that represent ownership interests in a company. There is both  more...
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stock buyback
A stock buyback occurs when a company repurchase their own shares from the marketplace. Companies may decide on a stock  more...
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stock dividend
A stock dividend is a dividend that is paid in shares of the company's stock rather than in cash. A  more...
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stock exchange
Stock exchanges are responsible for listing and trading the stocks of publicly-owned companies. Stock exchanges may be organized as physical  more...
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stock split
A stock split occurs when a company releases additional stock in a structured manner without decreasing shareholder equity. For  more...
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stock symbol
Stock symbol refers to the identifying letter code for a security to trade on an exchange or over the counter  more...
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stockholder
A stockholder, or shareholder, is an individual or organization owning stock in a company. Ownership is symbolized by a stock  more...
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stockholder of record
The stockholder of record is the registered owner of a security. Dividends and other distributions are paid to the stockholder  more...
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story stock
A story stock is one that trades primarily on expectations of future profits rather than on current conditions. The expectations  more...
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ticker symbol
A ticker symbol is a combination of letters used to identify a security or mutual fund. Each stock or mutual  more...
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UIT
An investment product that consists of a diversified basket of income-producing securities sold to investors in $1000 units is referred  more...
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value stock
A value stock is a stock that, in the opinion of the person calling it a value stock, is undervalued  more...
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venture capital firm
A venture capital firm is an investment company that invests in risky but potentially very profitable new ventures. The  more...
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Wall Street
Wall Street is a street in downtown New York City where the U.S. securities industry began. Wall Street is thus  more...
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wallflower
A wallflower stock is one that has been largely ignored by equity research analysts. Most wallflower stocks are companies with  more...
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warrant
A warrant, or stock warrant, is a security issued by a corporation that allows the owner to redeem the warrant  more...
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widow-and-orphan stock
A widow-and-orphan stock is a low risk stock that pays a consistently high dividend and has less volatility than the  more...
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yield
In general, yield is a term that defines a return on a capital investment of various forms. Typically, yield is  more...
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