This article is from the Glossary of Stock Investing Terms.
Cash or goods accumulated and available for use in producing more cash or goods.
A rise in the market value of an asset.
All of a company's tangible property, including securities, real estate and other property.
Funds used by a company to acquire or upgrade physical assets such as property, plant or equipment.
The profit made when a security is sold for greater than its original cost basis.
A capital loss occurs when the security is sold for less than its cost basis.
Also known as Invested Capital. The sum of a corporation's stock, long-term debt and retained earnings.
A dividend paid in cash to a corporation's shareholders. The amount is normally paid from a company's profits and is taxable as income to the shareholders.
A section of a company's balance sheet reports the value of Cash and Cash Equivalents. These are assets that are cash or can be converted into cash immediately, such as includes bank accounts, marketable securities and Treasury Bills.
The amount of cash a company generates during a period, calculated by adding noncash charges (such as depreciation) to net income after taxes. Cash Flow Per Share is calculated by dividing the Cash Flow by the number of outstanding shares, and is sometimes used in lieu of Earnings Per Share in analyzing a company. Cash Flow can be used as an indication of a company's financial strength.
An unethical practice employed by some brokers to increase their commissions by excessively trading in a client's account.
Shares held by individuals closely related to a company.
The fee paid to a broker to buy or sell securities. A commission increases the tax basis of the purchased security (thereby reducing the evental capital loss or gain). Commissions vary widely from broker to broker.
A class of stock in a company, normally with voting rights. Corporations may have several classes of common stock, as well as preferred stock, or they may have a single class of common stock. Common stockholders are on the bottom of the ladder in a corporation's ownership structure, and have rights to a company's assets only after bond holders, preferred shareholders and other debt holders have been satisfied.
The written acknowledgement provided by a broker that a trade has been completed. It includes details such as the date, price, commission, fees, settlement terms, and so on.
To acquire enough of a particular security in order to manipulate its price.
A form of business organization in which the company is divided into shares of stock. A corporation is ongoing and the owners face only limited liability.
Appears on a company's balance sheet, representing cash, accounts receivable, inventory, marketable securities, prepaid expenses and other assests that can be converted to cash within one year.
An industry, such as manufacturers of durable goods, whose performance is closely tied to the business cycle of the general economy.
Appears on a company's balance sheet, representing amounts owed for interest, accounts payable, short-term loans, expenses incurred but unpaid and other debts due within one year.
Indicator of company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities. Used to compare companies within a single industry: the higher the ratio, the more liquid the company.
The average annual rate of return received from an investment, based on income received during a year divided by the security's market price.
 
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