Prominent People
This TV Investor on CNBC is known for his notoriously questionable investment advice to the American public
JIM CRAMER
This foundational accounting equation represents the relationship between a company's assets, liabilities, and equity, demonstrating the balance sheet's balance?
Assets + Liabilities = Equity
In 2022, this cryptocurrency exchange filed for bankruptcy following a liquidity crisis, after reports surfaced about financial mismanagement and misuse of customer funds, leading to a significant fallout in the crypto market and legal actions against its founder, Sam Bankman-Fried.
FTX
A measure of liquidity, this ratio compares a company's most liquid assets (excluding inventory) to its short-term liabilities, offering insight into its ability to cover short-term obligations without selling inventory.
quick ratio
This term describes the total value of all a company's shares of stock. It is calculated by multiplying the company's share price by its total number of shares outstanding.
market capitalization
This famous BALD American is known for being the “granddaddy of online shopping”
JEFF BEZOS
This document, often called the "financial snapshot" of a company, outlines its assets, liabilities, and equity at a specific point in time, helping investors gauge the company's net worth
Balance Sheet
Regarded as the real-world version of Tony Stark, this CEO saw his stock plummet 20% by the end of the week after he partook in illicit activities on the Joe Rogan podcast
Elon Musk and Tesla.
This ratio measures how fast a company is selling its inventory quickly and efficiently, which can be a sign of strong sales and effective inventory management
Inventory Turnover
This term refers to the first sale of stock by a private company to the public, often used by smaller, younger companies seeking the capital to expand.
Initial Public Offering
This owner of Dairy Queen once claimed that EBITDA is “fake Accounting”, known by his nickname “The Oracle of Omaha
Warren Buffett
Often found amusing by accountants, this term refers to an asset's value being reduced over time due to use and wear and tear.
Depreciation
When John Schnatter, once CEO of this pizza-chain restaurant empire, resigned from his position, his company’s stock jolted up more than 12%
Papa John’s
This measure evaluates a stock's current price in relation to its earnings per share, assisting investors in determining if a stock is overvalued or undervalued.
Price-to-Earnings Ratio
Referring to a period of declining stock prices in the market, this term is often characterized by a fall of 20% or more from recent highs
bear market
This man started Standard Oil, a company that was later ordered to be dissolved into 34 entities after controlling 90% of the US oil market
John D. Rockefeller
This method of accounting revolves around the idea that inventory that was purchased first will be sold first.
FIFO
This Accounting firm dissolved following their involvement in the Waste Management and ENRON Accounting scandals.
Arthur Andersen
This is a ratio that measures the average number of days it takes for a company to pay its suppliers for goods or services purchased on credit.
Payables Period
This is a type of financial institution that helps companies and governments with various money-related tasks. They do things like helping companies sell stocks or bonds to raise money, advising on mergers and acquisitions, and trading stocks and other financial products.
Investment Bank
In 1984, this Walmart CEO danced the Hula on Wall Street after he lost a bet and beat profit goals.
Sam Walton
This accounting method recognizes revenues when earned and expenses when incurred, regardless of when cash is received or paid, providing a more accurate picture of a company's financial position.
Accrual Basis of Accounting?
This Japanese company committed Accounting fraud in 2011 by failing to write down the value of their investments, overstating their acquisitions, and using shell companies to write-off losses.
Olympus
This ratio measures how much of a company’s earnings are retained and reinvested in the business.
Plowback/retention ratio
What is a financial contract that gives the holder the right, but not the obligation, to buy or sell a specific stock at a predetermined price within a specified period.
Stock Option