Revenue Investments 1
Measures the ability of a company to make a profit.
Profitability Ratios
Measures how much profit goes to each share of common stock.
Earnings Per Share (EPS)
"Cousins" of mutual funds that trade like individual stocks. When you invest in this, you buy shares in an entire stock portfolio.
Exchange-Traded Funds (ETFs)
The dollar value of the stated bond.
Face Value/Par Value
A condition in which a market is controlled by one supplier with no substitute goods or services readily available.
Monopoly
Measures how efficiently a company manages its assets.
Asset Management Ratios
Looks ate management's ability to make a profit with the money that shareholders have invested.
Return on Equity (ROE)
Predetermined time when you can claim your original investment.
Maturity Date
A "letter score" assigned to a company based on the financial responsibility it has demonstrated.
Bond Rating
The regulatory agency established by the federal government to enforce laws that protect consumers' health.
Food and Drug Administration (FDA)
Measures the ability of a company to turn assets into cash to pay its bills.
Liquidity Ratios
Safety or financial leverage ratios, compare what a company owns to what it owes.
Debt Ratios
The "borrower" of the invested money.
Issuer
A collection of shareholders' money that is invested (by professional fund managers) in an assortment of different securities, such as stocks or bonds.
Mutual Fund
Issuing a government permit that allows an individual or a business to function in the marketplace.
Licensing
The percentage of sales that it gets to keep as profit.
Profit Margin
The idea is to see if expectations about earnings (PE) match the evidence for those expectations (earnings growth).
Price/Earnings-To-Growth (PEG)
A piece of paper (whether real or virtual) that says the governing body or corporation will borrow your money at a particular interest rate for a particulate period of time.
Bonds
A place (physical or virtual) where stocks are traded by brokers who represent buyers and sellers.
Stock Exchanges
A government regulatory agency that administers and enforces antitrust laws to prevent price fixing and to prohibit unfair competitive practices.
Federal Trade Commission (FTC)
Ratios that lets you know how a company's share prices compares to earnings per share.
Price-Earnings (PE)
Gives investors a basic share of ownership in the company as well as voting rights.
Common Stocks
Gives stockholders a basic share of ownership in the company. Entitled to fixed dividends. No voting rights.
Preferred Stock
A government agency that regulates interstate and international communications by radio, television, wire, satellite, and cable.
Federal Communications Commission (FCC)