Redemption Fee
An amount charged when money is withdrawn from a mutual fund. Unlike a back-end load, which profits the fund company, redemption fees go back into the fund itself and thus do not represent a net cost to shareholders. Redemption fees typically are charged only on withdrawals made before some relatively brief period, commonly 30, 180 or 365 days. These fees are typically imposed to discourage market timers, whose quick movements into and out of funds can be costly and disruptive.
An amount charged when money is withdrawn from a mutual fund. Unlike a back-end load, which profits the fund company, redemption fees go back into the fund itself and thus do not represent a net cost to shareholders. Redemption fees typically are charged only on withdrawals made before some relatively brief period, commonly 30, 180 or 365 days. These fees are typically imposed to discourage market timers, whose quick movements into and out of funds can be costly and disruptive.
Repayment of Debt
Includes the payments of long-term obligations (those of more than one year's duration).
Repurchase of Capital Stock
Includes anything that involves the repurchase of common and preferred stock for the corporate treasury.
Revenue
All the money (or other items of value) that came into the company during the given period. Revenue includes everything: sales, interest income, proceeds from the sale of a subsidiary and so forth. Revenue is thus one of the most reliable items on the income statement, as opposed to net income, which is subject to various accounting and managerial judgments. But the all-inclusive nature of revenue can make it misleading. If 50 percent of revenue in a given year came from the one-time sale of some land, clearly one shouldn't assume that the business will have similar revenue in future years.
Revenue Growth
The compound annual growth rate of a company's revenues.
Risk
The future chance or probability of loss.
Round Trip
Buying and selling the same stock, especially in a relatively brief period.
Buying and selling the same stock, especially in a relatively brief period.
Rule Of 72
A quick way to determine how long it take for some types of investments to double. To use the rule of 72, simply divide 72 by the yield of the proposed investment. If the investment yields 12 percent annually, it would take only six years to double your money. At 10 percent, it would take about seven years.
A quick way to determine how long it take for some types of investments to double. To use the rule of 72, simply divide 72 by the yield of the proposed investment. If the investment yields 12 percent annually, it would take only six years to double your money. At 10 percent, it would take about seven years.
Shareholder's Equity
This is the net worth of a company, the amount by which assets exceed liabilities. It's also known as ""book value."" But most companies are worth far more than their book value, since ""worth"" means what someone is willing to pay, and hardly any good companies can be acquired for this baseline price.
This is the net worth of a company, the amount by which assets exceed liabilities. It's also known as ""book value."" But most companies are worth far more than their book value, since ""worth"" means what someone is willing to pay, and hardly any good companies can be acquired for this baseline price.
Shares Outstanding
The total number of a company's publicly traded shares.
The total number of a company's publicly traded shares.
Spinoff
When a company decides that a subsidiary needs to stand on its own, it might do a spinoff, distributing shares of the new entity to existing shareholders, or selling the new business to its managers or even its employees. There are many possible reasons for a spinoff. Management may decide, for instance, that this is a way to maximize shareholder value. Or it may be decide that the subsidiary is not earning the kind returns that other units of the company generate.
When a company decides that a subsidiary needs to stand on its own, it might do a spinoff, distributing shares of the new entity to existing shareholders, or selling the new business to its managers or even its employees. There are many possible reasons for a spinoff. Management may decide, for instance, that this is a way to maximize shareholder value. Or it may be decide that the subsidiary is not earning the kind returns that other units of the company generate.
Stock Certificate
A document that proves your ownership of shares in a particular company
A document that proves your ownership of shares in a particular company
Inception Date
The date the mutual fund was started or first offered to the public. Income
The date the mutual fund was started or first offered to the public. Income
(1-year growth rate)
The year-to-date percent change in net income versus the same period a year ago.
The year-to-date percent change in net income versus the same period a year ago.
Initial Public Offering
The first stock sold by a company in going public.
The first stock sold by a company in going public.
Interest-Sensitive Stock
A stock whose price is very much affected by rising or falling interest rates.
A stock whose price is very much affected by rising or falling interest rates.
Investment Club
A typical investment club is a group of individuals -- often neighbors, co-workers or friends -- who agree to contribute a fixed sum each month to the club's investment pool. The money is used to buy stocks, bonds or to make other types of investments. If you're nervous about picking your own stocks and don't like the idea of working with a stockbroker, an investment club might be for you.
A typical investment club is a group of individuals -- often neighbors, co-workers or friends -- who agree to contribute a fixed sum each month to the club's investment pool. The money is used to buy stocks, bonds or to make other types of investments. If you're nervous about picking your own stocks and don't like the idea of working with a stockbroker, an investment club might be for you.
Issuance of Capital Stock
Proceeds from issuance of both common stock and preferred stock.
Proceeds from issuance of both common stock and preferred stock.
Issuance of Debt
Proceeds from company borrowing.
Proceeds from company borrowing.
Debenture
A bond issued without specific security. In the event of a crisis, holders of debentures take a back seat to other bondholders. To compensate for the added risk, debentures usually pay higher interest than secured bonds, or offer conversion to common stock
A bond issued without specific security. In the event of a crisis, holders of debentures take a back seat to other bondholders. To compensate for the added risk, debentures usually pay higher interest than secured bonds, or offer conversion to common stock
Debt Ratio
Liabilities divided by assets. The debt ratio is a good indicator of the extent to which a business is leveraged. The lower this number, the more conservative the firm and the less likely it is to be knocked for a loop in hard times.
Liabilities divided by assets. The debt ratio is a good indicator of the extent to which a business is leveraged. The lower this number, the more conservative the firm and the less likely it is to be knocked for a loop in hard times.
Debt/Equity Ratio
The most recent quarter long-term debt divided by the most recent quarter common stock equity. The debt/equity ratio is a measure of the extent to which a firm's capital is provided by owners or lenders. Aggressive companies often rely more heavily on debt than conservative companies. A greater reliance on debt can mean greater profitability for shareholders, but also greater risk in the event things go sour. Generally the debt/equity ratio should be 30% or lower, but as with most ratios, this one varies by industry.
The most recent quarter long-term debt divided by the most recent quarter common stock equity. The debt/equity ratio is a measure of the extent to which a firm's capital is provided by owners or lenders. Aggressive companies often rely more heavily on debt than conservative companies. A greater reliance on debt can mean greater profitability for shareholders, but also greater risk in the event things go sour. Generally the debt/equity ratio should be 30% or lower, but as with most ratios, this one varies by industry.
Dividend
The distribution of corporate earnings to shareholders. If it is in the shape of stock, it is called "Stock Dividend" and if in the shape of cheque or payorder, its called "Cash Dividend".
The distribution of corporate earnings to shareholders. If it is in the shape of stock, it is called "Stock Dividend" and if in the shape of cheque or payorder, its called "Cash Dividend".
Dividend Growth
The compound annual growth rate of dividends per share.
The compound annual growth rate of dividends per share.
Dividend Rate
The annual ruppee amount of the dividend per share.
The annual ruppee amount of the dividend per share.
Earnings Per Share (EPS)
Net income divided by common shares outstanding. A company that earns Rs.1 million for the year and has a million shares outstanding has an EPS of Rs.1.
Net income divided by common shares outstanding. A company that earns Rs.1 million for the year and has a million shares outstanding has an EPS of Rs.1.
Equity
Equity is the market value of your property, less the amount you owe on it and must repay when you sell.
Equity is the market value of your property, less the amount you owe on it and must repay when you sell.
Even Lots
Transactions where stocks are purchased or sold in multiples of 100 shares, also referred to as round lots. It's best to buy or sell stocks in even lots rather than odd lots (less than 100 shares or not a multiple of 100) since most brokers charge a higher commission on odd-lot orders.
Transactions where stocks are purchased or sold in multiples of 100 shares, also referred to as round lots. It's best to buy or sell stocks in even lots rather than odd lots (less than 100 shares or not a multiple of 100) since most brokers charge a higher commission on odd-lot orders.
Odd Lots
A number of shares that are less than a board lot, which is the regular trading unit decided upon by the particular stock exchange. An odd lot is also an amount that is less than the par value of one trading unit on the over-the-counter market. For example, if a board lot is 100 shares, an odd lot would be 99 or fewer shares.
Financial Adviser
Financial advisers focus primarily on your investment portfolio. They recommend stocks, bonds, mutual funds or other investments that fit your goals and risk level. And if you agree to open a ""discretionary"" account, the adviser can invest your money without first getting your permission.
Financial advisers focus primarily on your investment portfolio. They recommend stocks, bonds, mutual funds or other investments that fit your goals and risk level. And if you agree to open a ""discretionary"" account, the adviser can invest your money without first getting your permission.
Financial Planner
Unlike financial advisers, financial planners become involved with all of your assets -- not just stocks and bonds, but real estate, insurance, even collectibles and college-savings accounts.
Unlike financial advisers, financial planners become involved with all of your assets -- not just stocks and bonds, but real estate, insurance, even collectibles and college-savings accounts.
Financials Sector
A category that includes banks, brokerage firms, thrifts, insurance, and real estate companies
A category that includes banks, brokerage firms, thrifts, insurance, and real estate companies
Financing Activities
The sale or purchase of a company's own stock or bonds, payment of dividends and any other finance charges incurred in the company's operations
The sale or purchase of a company's own stock or bonds, payment of dividends and any other finance charges incurred in the company's operations
Fiscal Year (FY)
The 12-month accounting period of a business. For various reasons, the fiscal year is often different from the calendar year. This is especially the case in some seasonal businesses, such as retailing.
The 12-month accounting period of a business. For various reasons, the fiscal year is often different from the calendar year. This is especially the case in some seasonal businesses, such as retailing.
Fully Diluted Earnings Per Share
Earnings per share that takes account of all the common stock that would exist if convertible securities were traded in for common shares.
Earnings per share that takes account of all the common stock that would exist if convertible securities were traded in for common shares.
Gross Domestic Product (GDP)
The total value of goods and services produced by a nation within that nation.
The total value of goods and services produced by a nation within that nation.
Head and Shoulders
For technicians, a chart pattern indicating a peak, a decline, a second even higher peak, a decline, a rebound to the level of the first peak, and yet another decline. A head and shoulders pattern is supposed to be bad news, indicating the stock is headed downward.
For technicians, a chart pattern indicating a peak, a decline, a second even higher peak, a decline, a rebound to the level of the first peak, and yet another decline. A head and shoulders pattern is supposed to be bad news, indicating the stock is headed downward.
Hedge Fund
A risky investment pool, generally open only to well-heeled investors, that seeks very high returns by taking very great risks.
A risky investment pool, generally open only to well-heeled investors, that seeks very high returns by taking very great risks.
Leading Economic Indicators
A compendium of previously announced economic indicators: new orders, jobless claims, money supply, average workweek, building permits, and stock prices.
A compendium of previously announced economic indicators: new orders, jobless claims, money supply, average workweek, building permits, and stock prices.
Limit Order
When you instruct your broker to buy shares for you at or below a certain price, or sell shares at or above a certain price, you've entered a limit order.
When you instruct your broker to buy shares for you at or below a certain price, or sell shares at or above a certain price, you've entered a limit order.
Market Order
In which the broker is instructed to execute the trade at any market price available.
BidThe highest price a buyer is willing to pay for a stock. When combined with the ask price information, it forms the basis of a stock quote.
In which the broker is instructed to execute the trade at any market price available.
BidThe highest price a buyer is willing to pay for a stock. When combined with the ask price information, it forms the basis of a stock quote.
Blue Chip Stocks
Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities
Broker or Brokerage Firm
A securities firm or a registered investment advisor affiliated with a firm. Brokers are the link between investors and the stock market. When acting as a broker for the purchase or sale of listed stock, the investment advisor does not own the securities but acts as an agent for the buyer and seller and charges a commission for these services.
Bull Market
A market in which stock prices are rising.
Call Option
An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock at a specified price within a specified time. Calls are purchased by investors who expect a price increase.
CommissionThe fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client.
CommissionThe fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client.
Intrinsic Value
The difference between the current market value of the underlying interest and the strike price of an option. In-the-money is a term used when the intrinsic value is positive.
Mutual Fund
A fund managed by an expert who invests in stocks, bonds, options, money market instruments or other securities. Mutual fund units can be purchased through brokers or, in some cases, directly from the mutual fund company.
Par Value
A security's nominal face value.
A security's nominal face value.
Seed Stock
The shares or stock sold by a company to provide start-up capital before carrying out an initial public offering (IPO).
Spread
The difference between the bid and the ask prices of a stock.
