Financial Statements
What is the total money a company earns from selling products or services?
Revenue
This ratio measures a company's current share price relative to its per-share earnings.
Price to Earnings ratio
This ratio measures a company's ability to pay short-term obligations with short-term assets.
Current Ratio
This strategy involves purchasing undervalued stocks with strong fundamentals, aiming for long-term appreciation.
Value investing
This investment represents ownership in a company, entitling shareholders to a portion of its profits.
What are stocks.
What is the profit a company makes after all expenses are subtracted?
Net Income
Calculated by subtracting the cost of goods sold from total revenue this thing represents the profit a company makes from its core activities.
Gross profit
This ratio indicates the percentage of revenue remaining as profit after all expenses are deducted.
Net profit Margin
This approach focuses on investing in companies with potential for above-average growth, often at higher risk.
Growth Investing
Bond
Which Statement shows a company's earnings and costs over a period of time?
Income Statement
Also known as operating income, this metric is derived by subtracting operating expenses from gross profit.
Operating profit
This ratio assesses how effectively a company uses its assets to generate a profit.
Return on Assets
This strategy involves buying and selling securities based on short-term price movements, aiming to capitalize on market trends.
Momentum Trading
These investment funds hold a diversified portfolio of assets and trade on stock exchanges, combining features of both mutual funds and individual stocks.
ETF
Which statement lists a company's assets, debts, and owner's equity at a certain point?
Balance Sheet
This financial metric is often scrutinized for excluding significant expenses, potentially leading to an inflated perception of a company's profitability.
EBITDA
This ratio compares a company's total liabilities to its shareholders' equity
This method entails buying and selling financial instruments within the same trading day, aiming to profit from short-term market fluctuations.
Day Trading
This digital or virtual currency uses cryptography for security and operates on decentralized networks, with Bitcoin being the first and most well-known example.
Cryptocurrency
Which statement tracks the cash flowing in and out of a company?
Cash flow
This metric measures how effectively a company uses shareholder's equity to generate profits.
Return on Equity
This ratio measures a company's ability to meet short-term obligations without relying on inventory sales.
Quick Ratio
This strategy involves diversifying investments across various asset classes to manage risk and achieve more stable returns.
Asset Allocation
These raw materials or primary agricultural products, such as gold, oil, or wheat, are traded on specialized markets and often serve as a hedge against inflation.
Commodities