business terms
a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something
profit
Business with one person in full control
sole proprietership
the total amount of a specific product or service that producers are willing and able to offer for sale to consumers at a given price and time
Supply
The lowest price a seller will accept for a share
Ask Price
a way to check if a stock is "worth" its price, like gauging if it's a good deal.
P/E ratio
the total income a business generates from selling its core products or services before any expenses
revenue
partnership
the stable market state where the quantity of a product or service that consumers demand perfectly matches the quantity producers supply
equilibrium
The highest price a buyer will pay for a share
Bid price
It shows how much profit the company makes for each share of stock, helping investors see if the company is profitable on a per-share basis.
Earnings per share
an individual, organization, or entity that purchases goods, products, or services from a company in exchange for money
customer
Business with 1+ members with limited liability meaning that personal assets protected from business debts/lawsuits
Limited Liability company
the value of the best alternative you give up when making a choice, representing the potential profit, time, or resources lost from the forgone option
opportunity cost
when stock prices are falling, and investors expect more declines
Bear market
a portion of a company's profits that gets paid out to its shareholders.
Dividends
any individual, company, or entity that transfers or agrees to transfer ownership of goods, services, or property to a buyer in exchange for money
seller
business with unlimited share holders
C corporation
any amount of an asset, resource, or income that exceeds what is needed
surplus
When stock prices are rising, and investors are optimistic
Bull market
when a private company sells shares of itself to the general public for the very first time
Initial public offering
the direct cost of producing or acquiring the products a company sells, including raw materials, direct labor, and manufacturing overhead
COGS
Business with up to 100 shareholders with strict rules
S corporation
a market condition where the quantity of a product or resource demanded by consumers exceeds the available supply at the current price, leading to unmet needs
shortage
profit from selling a stock for more than you paid
capital gain
spreading investments across various companies, industries, sizes (market caps), and geographic regions to reduce risk
Diversification