Glossary

Stocks that have a high volume of trades during a trading session, indicating a high level of investor interest or activity.

The average number of shares traded in a stock over a specific period, typically used to determine how liquid a stock is.

Liquid assets that are considered equivalent to cash because they can be quickly converted into a known cash amount.

A liquidity metric that includes cash, cash equivalents, and marketable securities held as short-term investments.

A measure of a company’s financial liquidity calculated by dividing its total cash and cash equivalents by the total number of shares outstanding.

The difference in the current price of a stock compared to its previous closing price.

Shares entitling their holders to dividends that fluctuate in amount, and have the last claim on assets and dividends.

Basic goods used in commerce that are interchangeable with other goods of the same type, such as oil, gold, or wheat.

The aggregate of costs and expenses associated with normal business operations.

The total cost of manufacturing and delivering a product or service to consumers.

An alphanumeric code that identifies securities, including stocks and bonds in the United States and Canada.

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

The highest price at which a stock traded during the course of a trading day.

The lowest price at which a stock traded during the course of a trading day.

A measure of a company’s financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Money received by a company for goods or services which have not yet been delivered or provided.

A metric that shows the quality of earnings per share (EPS) if all convertible securities were exercised.

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

An indicator of a company's financial performance which measures profits before deduction of interest expenses, taxes, depreciation, and amortization.

A financial ratio that compares a company's Earnings Before Interest, Taxes, Depreciation, and Amortization to its total revenue.

The net profits of a company after taxes and expenses have been deducted from total revenue.

The portion of a company’s profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

The ratio of earnings per share over the last 12 months to the current share price, expressed as a percentage.

Events that have a significant impact on the economy and financial markets, such as central bank meetings, employment reports, or GDP announcements.

A valuation metric that compares the total valuation of a company, including debt, to the cash it generates from its operations.

A valuation measure that compares the total value of a company, inclusive of debt and other liabilities, to its total revenues.

A type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, but can be purchased or sold on a stock exchange the same as a regular stock.

A financial ratio that compares the free cash flow per share a company is expected to earn against its market value per share.

Stocks that have increased in price over a given period, typically a trading day.

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

A profitability metric that compares the gross profit of a company to its total revenues.

A statistical measure that represents the value of a basket of securities, which provides insight into the performance of a specific sector, market, or economy.

A specific category within a sector that refers to a group of companies with similar business activities.

A measure of a company’s ability to meet its interest payments on outstanding debt.

The raw materials, work-in-progress goods, and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

The process by which a private company becomes publicly traded by offering its stocks to the public for the first time.

The profitability of a company before it pays taxes, calculated by subtracting all expenses from revenues excluding taxes.

A profitability metric that compares a company's income before tax to its total revenue.

Any company debt or bond that matures in more than one year. Long-term debt is treated differently from short-term debt on a company's balance sheet.

Stocks that have decreased in price over a given period, typically a trading day.

A leverage ratio that shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant.

The total profit of a company after all expenses and taxes have been deducted from revenues.

A profitability ratio that calculates the percentage of profit a company earns from its overall revenue.

The total money owed to a company for goods or services that have been delivered or used but not yet paid for by customers.

Expenses incurred during normal business operations, such as selling, general, and administrative expenses.

Income generated from regular business operations, excluding expenses such as taxes and interest charges.

A measure of what proportion of a company's total revenue is left over after paying for variable costs of production such as wages and raw materials.

The percent difference in the current price of a stock compared to its previous closing price, indicating how much a stock has increased or decreased in value.

The amount of money required to purchase one share of a stock or any financial asset.

A valuation ratio that compares a firm's market value to its book value, often used to compare the market perception of the company to its actual worth.

A valuation ratio that compares a company’s market capitalization to its free cash flow.

A valuation ratio that compares a company’s stock price to its revenues, helping investors identify the value placed on each dollar of a company’s sales or revenues.

The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage.

A measure of a company's profitability that calculates how much profit a company generates with the money shareholders have invested.

A measure of how well a company generates cash flow relative to the capital it has invested in its business.

A measure of how effectively a company is using its physical assets to generate profit.

Costs related to the research and development of the company's products or services, typically reflected in the financial statements.

The total amount of money generated by the sale of goods or services related to the company's primary operations.

The sum of all direct and indirect selling expenses and all general and administrative expenses of a company.

A group of companies that operate in a similar segment of the economy.

Units of stock that represent ownership in a company and constitute a claim on part of the company's assets and earnings.

Any debt due within one year from the date of the balance sheet and typically paid within a fiscal year.

Investments that are expected to be converted into cash, sold, or consumed either in a year or less, or within the operating cycle.

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of equity remains the same.

The total value of all assets that are expected to be converted into cash within one year during the normal course of operation.

The total amount of liabilities due within one year.

The sum of the current and long-term debt obligations of a company.

The total of all stockholders' equity (minus preferred stock) plus retained earnings.

The sum of all investments a company holds, including stocks, bonds, and other securities.

The combined debts and obligations that an entity owes to outside parties.

The total amount of long-term liabilities that are not due within the current operating cycle.

The total net worth of a company, calculated as total assets minus total liabilities.

The total number of shares or contracts traded in a security or an entire market during a given period.

A financial metric that represents the difference between a company's current assets and current liabilities.

The highest price at which a stock has traded during the most recent 52-week period.

The lowest price at which a stock has traded during the most recent 52-week period.

A stock’s average closing price over the last 50 days, which is often used to identify trends.

Similar to the 50-day DMA, it represents the average closing price over the last 100 days.