Investment Dictionarystock Market A stock market represents all the stocks (shares) that are issued and traded or just held. Stock market (equity market) is a part of a whole financial market but more extensive term than Stock Exchange. Stock Exc http://www.investingforbeginners.eu/stock_market Common Shares (stock) Common stocks (shares) are ordinary shares - securities that represent a proportional ownership of the firm including all the material (like dividends) and non-material (voting) rights. Common shares are the trad http://www.investingforbeginners.eu/common_shares_stock Preferred stock (Preferred Shares) A preferred stock or preferred shares are other type of shares than common shares. They are called preferred only because of priority over common shares in case of a firm’s termination. http://www.investingforbeginners.eu/preferred_stock_preferred_shares stock Split A stock split is a divide of existing company’s shares decreasing its face value. For every owned share an investor gets a several (or one) additional shares depending on split ratio, and the total out http://www.investingforbeginners.eu/stock_split Reverse stock Split Reverse stock split is a merge of existing company’s shares increasing its face value. For several owned shares an investor gets one share depending on reverse split ratio, when total outstanding shares num http://www.investingforbeginners.eu/reverse_stock_split stock Book Value Stock book value is a book value of one share. It is calculated dividing shareholders equity by share number and gives some very approximate investing guidance about the value of the stock. It is popular to look http://www.investingforbeginners.eu/stock_book_value stockholder Wealth Maximization Stockholder wealth maximization is a main goal for firm’s managers in corporate finance. Stockholder wealth maximization is above the profit maximization because of long term orientation and better risk man http://www.investingforbeginners.eu/stockholder_wealth_maximization stock Market Crash A stock market crash is a investing term used to describe fast and sharp decrease of all or almost all stock prices on the exchange. However, there is no exact definition how long and how strong market fall shoul http://www.investingforbeginners.eu/stock_market_crash Dividend stocks Dividend stocks are called stocks that have high dividend yield and high dividend payout ratio. Normal dividend stocks should have stable 6%-10% dividend yield and possible 60-100% dividend payout ratio. High div http://www.investingforbeginners.eu/dividend_stocks stock Buyback A stock buyback (share repurchase) is a company’s purchase of its own stock on the market. It is contrary way to pay out capital for shareholders to dividends. Stock buybacks are getting more and more http://www.investingforbeginners.eu/stock_buyback stock Exchange A stock exchange is an operator/company that takes bids from the sellers and buyers and executes transactions if conditions allow it. Usually stock exchanges offer trading not only for stocks but also for other f http://www.investingforbeginners.eu/stock_exchange Large Cap stocks Large cap stocks are stocks of those companies that have the highest market capitalization. All the stocks can be classified to large cap, mid cap and small cap (if ignoring modern classifications that include mo http://www.investingforbeginners.eu/large_cap_stocks Small Cap stocks Small cap stocks are stocks of lower market capitalization. All stocks may be classified to large cap, mid cap and small cap (if ignoring mega, nano and other modern classification caps). There is no united class http://www.investingforbeginners.eu/small_cap_stocks Blue Chip stocks Blue chip stocks are stocks of the biggest large cap companies. Blue chip stocks usually are safer than average investment in stocks, have stable cash flow and pay stable dividends according dividend policy. Blue http://www.investingforbeginners.eu/blue_chip_stocks Penny stocks Penny stocks used to be described as stocks which price on stock exchange are lower than 1$ or 5$ (there is no officially approved norm). However, it is not very fair to judge a company for its share price on exc http://www.investingforbeginners.eu/penny_stocks Cheap stocks Cheap stocks are such stocks that are traded at low valuation multiples. For example, if you see a telecom or utility company of which P/E is equal to 6 and EV/EBITDA is equal to 3, you may say it is a cheap stoc http://www.investingforbeginners.eu/cheap_stocks Growth stocks Growth stocks are stocks of companies which earnings per share grow faster than average on the market. Such is theory, but if look in practical side, earnings grow faster most of the times only when economical cy http://www.investingforbeginners.eu/growth_stocks Dividend Growth stocks Dividend growth stocks are stocks that are hard to find in reality. Because the stock must be either value stock (large dividend payments) either growth stock (small dividend payments) or either something in betw http://www.investingforbeginners.eu/dividend_growth_stocks Value stocks Value stocks are opposite to growth stocks and attract investors not by growth perspectives but by stable cash and dividend flow. Market ratios (P/E, P/B and other) of value stocks are low and together with high http://www.investingforbeginners.eu/value_stocks Value Penny stocks Value penny stocks are stocks that have characteristics of both: value stock and penny stock. Investment in value penny stocks isn’t very popular, because stock investors who seek for safety invest in norma http://www.investingforbeginners.eu/value_penny_stocks Direct Investments in stocks Direct investments in stocks are investments made without financial intermediaries (only theoretically). It means an investor buys stock directly from the company without intermediation of stock exchange or broke http://www.investingforbeginners.eu/direct_investments_in_stocks Trading stocks Trading stocks is a process when stocks are bought and sold on the stock market. How differs trading stocks and investing in stocks? Well, it is the same, just is common to think that investing is a long term pro http://www.investingforbeginners.eu/trading_stocks Employee stock Options Employee stock options are options that are given to employees as part of motivation package and gives an opportunity for employees to acquire shares of the company in the future at a lower price. In their meanin http://www.investingforbeginners.eu/employee_stock_options stock Option A stock option is derivative financial instrument that gives the holder of the option the right to buy some particular stock at the predetermined strike price till the end of the option (or at the end, depending http://www.investingforbeginners.eu/stock_option stock Trader A stock trader is a speculator that is trying to make profits from quick changes in value of stocks or other securities that he trades. Stock trader have few differences from normal investor and the main differen http://www.investingforbeginners.eu/stock_trader stock Market Trading Stock market trading is similar to stock market investing; however, it is not exactly the same. At first, stock trading refers to a stock trader who trades stocks very often and do not invests for a long term. Lo http://www.investingforbeginners.eu/stock_market_trading stock Price A stock price is the last price of a share (stock) that was traded in a stock exchange for a particular stock. If stock exchange is closed at the moment, then the last stock price will be closing price for that s http://www.investingforbeginners.eu/stock_price stock Market Investing Stock market investing is investing in equity securities – stocks. Stock market investing differs from stock market trading because has longer term approach. Stock markets cover stocks that a http://www.investingforbeginners.eu/stock_market_investing Good stocks Good stocks are those stocks that meet’s investors risk tolerance and investment strategy. Also good stocks should have upside potential to increase in value in the future. If stocks are already priced high http://www.investingforbeginners.eu/good_stocks Best stocks Best stocks would depend on criteria of the particular investor. Of course, you could say that best stocks should be the stocks that will increase the most in the future. But reality is that nobody knows about th http://www.investingforbeginners.eu/best_stocks Buying stocks Buying stocks is an easy thing. Of course, it is harder to pick good stocks. Every person, that has some capital, can open a trading platform and buy stocks, but the goal is not only to buy the stocks but to make http://www.investingforbeginners.eu/buying_stocks stock Symbol Stock symbol is symbol that is created for stocks by stock exchange to be easier recognizable for participants of the financial market. Stock symbol mostly is called as stock ticker. http://www.investingforbeginners.eu/stock_symbol stock Ticker A stock ticker also called as a stock symbol actually is some code that is given for a p stock. Every stock that is listed on any stock exchange has some stock ticker by which is recognized. The stock ticker is n http://www.investingforbeginners.eu/stock_ticker Undervalued stocks Undervalued stocks are called those stocks that are believed to have higher target price than their stock price on the exchange. The higher is the difference the more stock is undervalued. If stock price in the m http://www.investingforbeginners.eu/undervalued_stocks Overvalued stocks Overvalued stocks are those stocks that cost in stock market more than their target price is. Target price of the stock is calculated market value of a stock using stock valuation methods. The most popular method http://www.investingforbeginners.eu/overvalued_stocks Technical Analysis of stocks Technical analysis of stocks is widely known type of stock analysis. Technical analysis is completely opposite to fundamental analysis. While fundamental analysis relies on company’s ability to generate cas http://www.investingforbeginners.eu/technical_analysis_of_stocks | Recommended Topics Investment psychology gains momentum in contemporary business world Balance Sheet Most Popular Articles Investing in Gold (I) Investing in Gold (II) Investing in Uncertain Period
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