Glossary of Stock Investing Terms

Glossary of Stock Investing Terms: A

American depositary receipts: Known as ADR's. ADR's are certificates issued by a U.S. bank, consisting of a bundle of shares of a foreign corporation that are being held in ...

Glossary of Stock Investing Terms: B

Balance sheet: A company's financial statement that reports its assets, liabilities, and net worth at a specific time. Liabilities always equal assets, hence the name balance ...

Glossary of Stock Investing Terms: C

Capital: Cash or goods accumulated and available for use in producing more cash or goods. Capital appreciation: A rise in the market value of an ...

Glossary of Stock Investing Terms: D

Day order: An order to buy or sell a security that automatically expires if not executed on the day the order is placed. Debt financing: A ...

Glossary of Stock Investing Terms: E

Earnings: Net income for a company during a specific period, generally (but not always) referring to after-tax income. Earnings per share (eps): ...

Glossary of Stock Investing Terms: F

Float: The total number of outstanding shares available on the market. Form 10K: A company's annual audited report filed with the Securities and ...

Glossary of Stock Investing Terms: G-H

Going public : The process of selling shares that were formerly privately-held to new investors for the first time. Good 'til canceled: ...

Glossary of Stock Investing Terms: I

Income statement: A company's financial statement summarizing revenues and expenses in a specific period, also known as a profit and loss statement. ...

Glossary of Stock Investing Terms: K-L

Keogh plan: A qualified tax-deferred retirement plan for self-employed individuals. Leverage: The use of borrowed capital to increase the return ...

Glossary of Stock Investing Terms: M

Margin: Using borrowed money to purchase securities (buying on margin). Margin account: A brokerage account in which the broker lends the ...

Glossary of Stock Investing Terms: N

NASD: The National Association of Securities Dealers, Inc., the self-regulatory organization of the securities industry responsible for the operation and regulation of the ...

Glossary of Stock Investing Terms: O

Odd lot: A buy or sell transaction involving less than 100 shares of stock. Open order: An order to buy or sell a security that will remain in ...

Glossary of Stock Investing Terms: P

Par value: A dollar amount assigned to a security when first issued. For stocks, par is usually a small dollar amount that bears no relationship to the security's market price....

Glossary of Stock Investing Terms: Q-R

Quick ratio: Calculated by subtracting inventories from current assets, then dividing by current liabilities. The Quick Ratio is an indicator of a company's financial strength....

Glossary of Stock Investing Terms: S

Secondary market: All stock exchanges are part of the Secondary Market, where investors buy securities from other investors (as opposed to an issuing company). ...

Glossary of Stock Investing Terms: T-Y

Technical analysis: A method of evaluating securities by analyzing data of a stock's market activity, generally price and volume. Technical analysts use charts to identify ...