Stock Market Indexes
What is Dow Jones
Measures the performance of the
stock of the top 30 companies in the
US. These companies are usually the
masters of their fields and have been
around for a very long time.
whats a dividend streak
The consecutive # of years the company paid
dividends
what is the income statement and what is it used for
an overview of the money a company has coming
in (Revenue) versus the money a company has going out (Expenses)
and what their total profits or loss is (Net Income)
What is a bull market
Economic Cycle where the market is growing really quickly
What is the PE ratio
Share Price
What is S&P 500
Measures the performance of the top
500 companies in the US. This will
give you a truer picture of American
business health.
what is dividend growth rate
By how much has a company increased its
dividends over a period of time. It helps to predict what potential
future dividends will be.
what is the balance sheet
The net worth of a company.
what is a bear market
Economic Cycle where the market is growing really slowly or even declining
What does the PE ratio help you figure out
If the stock your investing in is Overvalued , Under valued , Priced Fairly
What is Nasdaq
Measures the performance of over
3200 stocks, most known for the tech
stocks, as well as energy, healthcare,
finance, public utilities,
transportation, and more. The Nasdaq
covers a vast array of companies of
all sizes and wealth. This is where
you will find a lot of your fast growth
companies
what are the 4 dividend categories
Dividend Challengers-Dividend Contenders-Dividend Champions/Aristocrats-Dividend Kings-
what is the cash flow statement
A statement that tells you where a company is getting
their money from and how much, versus what they are spending their
money on and how much- how a company’s money moves.
whats a stock correction
When the stock market declines at least 10% from its most recent peak
Where do you go to get background info on your company
Financial Websites- Yahoo Finance, Motely Fool, Nasdaq.com,MarketWatch, Seeking Alpha, and your brokerage sites,Charles Schwab, Fidelity, TDAmeritrade, and Robinhood.
what are 4 of the 11 sectors
Technology- Software (programs), hardware (physical items like Computers, and semiconductor (computer chips) companies 2. Healthcare- Pharmaceutical companies (medicine), medical device manufacturers, and healthcare providers (health insurance) 3. Financials- Banks, insurance companies, investment firms, and other financial institutions 4. Consumer Discretionary- Companies selling non-essential goods like automobiles, Clothing & footwear, and luxury items. (Also known as Consumer Cyclical) 5. Industrials Companies involved in manufacturing, construction, and industrial equipment. 6. Communications- Telecommunications, media, and entertainment companies. 7. Consumer Staples- Companies selling essential goods like food, beverages, and personal care products. (Also known as Consumer Defensive) 8. Energy- Oil and gas exploration, production, and refining companies. Also alternate new energies like Solar. 9. Utilities- Electric, gas, and water utility providers. Materials- Companies involved in extracting and refining raw materials like metals,
whats a dividend king
companies that paid increased dividends 50+
consecutive years
what are gross profits
the profit (or loss) a business makes after Cost of Goods Sold (COGS) is taken out
whats a stock crash
When the stock market declines at least 20% from its most recent peak
What do you do when you find the PE ratio is high
MOVE TO THE PEG RATIO
why are sectors and Indexes important
Indexes and Sectors are important because they help you to keep
track of how different areas of the market are doing, sentiment (how
people are currently feeling about the market and economy), and
where the money is truly going
whats a Dividend Champions/Aristocrats
companies that paid increased
dividends 25+ consecutive years
what is the profit margin
The percentage of the revenue that is pure profit-
what is Warren Buffett famous quote
"be greedy when others are fearful and be fearful when others are greedy"
What is over considered overvalued in the PE ratio
Over 25%