Income Statement
The income statement is sometimes referred to as _____.
What is a profit & loss (P&L) statement?
The balance sheet presents a company’s financial position at _____.
What is a specific moment in time?
A bond is labeled “_____” because the contract terms and amounts are fixed.
What is fixed income?
These trade only once daily after the market closes.
What are mutual funds?
Diversification is the practice of spreading investments across different asset classes to _____.
What is to reduce risk?
_____ is a way of showing much money investors earn for every share they own.
What is earnings per share (EPS)?
We looked at an example of this company that went bankrupt during COVID because they couldn’t pay their bills when profit dropped.
What is JC Penney?
_____ is the annual net profit that an investor earns on an investment.
What is yield?
This is an investment vehicle holding a collection of stocks from countries with developing stock markets.
What is an emerging markets equity fund?
This is the most common type of fixed income.
What are bonds?
This is the formula for EPS.
(Net income – Preferred Dividends) / Shares Outstanding
List 4/6 metrics used to evaluate a balance sheet discussed in class.
What is current ratio, quick ratio, net debt, net debt-to-EBITDA ratio, accounts receivable days, inventory days?
What 2 aspects generally affect yield?
What is quality and duration of bonds?
This is the expense ratio formula.
What is Management Fees / Total Fund Investment
Real assets can appreciate in value, though to realize returns, you may need to _____.
What is to sell the asset?
This is the percentage of sales revenue that a company is able to convert into gross profit.
What is gross profit margin?
This is the formula to calculate current ratio.
What is Current Assets / Current Liabilities?
This bond sells for more than its face value because its coupon payments are more attractive than current market yields.
What is a premium bond?
These are the 3 main ways to make money with mutual funds and ETFs.
What are dividend payments, capital gains distributions, and increased net asset values?
Many investors hold this as a way of maintaining liquid assets or simply providing safety and comfort in volatile times.
What are cash and cash equivalents?
EBITDA stands for _____.
What is earnings before interest, taxes, depreciation, and amortization?
This is how to calculate net debt.
What is Short-Term + Long Term Liabilities – Current Assets
This is the current value of a future stream of cash flows given a specified rate of return.
What is present value?
This was the percent return of the best performing stock in 2024.
What is 712%?
This is the name of the colorful table that displays the annual returns for key indices.
What is the Callan Periodic Table of Investment Returns?