Asset – Anything having commercial or exchange value that is owned by a business, institution, or individual.
Cyclical Stock – Stock that tends to rise quickly when the economy tunes up and falls quickly when the economy turns down.
Dividend – distribution of earnings to shareholders, prorated by class of security and paid in the form of money, stock, scrip, company products or porperty.
EBIT – Earning Before Interest and Taxes
EPS – Earnings Per Share
Entrepreneur – a person who takes on the risk of starting a new business
Free Cash Flow – represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.text
Fractional Share – a unit of stock less then one full share.
Growth Stock – stock of a corporation that has exhibited faster–than–average gains in earnings over the last few years and is expected to continue to show high levels of profit growth.
Index Fund – whose portfolio matches the of a broad–based index such as Standard & Poors Index whose performance therefore mirrors the market as a whole.
IPO – initial public offering
Interim Dividend – declared and paid before annual earnings have been determined, generally quarterly. Most companies strive for consistency and plan quarterly dividends they are sure they can afford,
Price–to–Earnings – price of a stock divided by its earnings per share.text
REIT – real estate investment trust
Tax–Loss Harvesting – the selling of securities at a loss to offset a capital gains tax liability
Yield – percentage rate of return paid on a common or preferred stock in dividends