Glossary
Equities
Equities represent ownership interests in a corporation, typically in the form of common stock, giving shareholders a claim on the company’s assets and earnings.
Investing
Glossary
Earnings per Share (EPS)
Earnings per Share (EPS) measures how much of a company’s profit is allocated to each outstanding share of common stock, providing a standardized way to assess profitability on a per-share basis.
Glossary
Earnings
Earnings refer to a company’s net income after taxes, representing its bottom-line profit over a specific reporting period.
Glossary
Common Stock
Common stock is a security that represents ownership in a corporation and provides shareholders with voting rights and a residual claim on company profits and assets after other obligations are met.
Glossary
Capitalization
Capitalization refers to the overall market value of a firm based on its outstanding shares and share price, and also to an accounting method where costs are added to an asset’s value and expensed over its useful life.
Glossary
Book Value
Book value is a company’s net asset value shown on its balance sheet, calculated as total assets minus total liabilities. It reflects an accounting-based estimate of the company’s net worth.
Glossary
Benchmark Index
A benchmark index is a standardized group of securities used to compare and evaluate the performance of a portfolio, fund, or investment strategy.
Glossary
Asset Class
An asset class is a group of investments with similar characteristics, risk profiles, and regulatory treatment that tend to behave similarly under market conditions.
Glossary
Appreciation
Appreciation is the increase in an asset’s value over time due to factors such as demand, supply changes, inflation, or interest rates. It is the opposite of depreciation.
Glossary
Acquisition
An acquisition occurs when one company purchases a majority or all of another company’s shares to gain control of its business and assets, allowing the acquiring company to make decisions without approval from other shareholders.