80 likes | 166 Views
Important Terms for the Stock Market.
E N D
Portfolio: A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals. www.investopedia.com
Sectors An area of the economy in which businesses share the same or a related product or service. Economies are comprised of four sectors. The primary sector involves the extraction and harvesting of natural products from the earth (e.g., agriculture, mining and forestry). The secondary sector consists of processing, manufacturing and construction. The tertiary sector provides services, such as retail sales, entertainment and financial services. The quaternary sector is made up of intellectual pursuits, like education. www.financeyahoo.com
Ups and Downs +++++ up --------- down level holding up downturn broke even rebounded downside flat outperform slid stabilized rally off changed surge losses volatile fell dipped fluctuated buoyed plummeted gains dropped advanced rose jumped
Revenues vs. Profits Revenue The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income. Profit A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business. Profit= TOTAL REVENUE MINUS TOTAL EXPENSES
Indicators Brainstorm—what are some indicators as to how the economy is doing?
Kiplinger Economic Indicators • GDP1.5% in '14; 3% or better in second half of year • Unemployment Bouncing around; about 6.3% by end ’14 • Interest rates Short-term rates to stay low through '14 • Inflation Ticking up slowly to 2.4% in '14 • Business spendingSpending up 4.5%-5% in '14 as U.S. growth strengthens • Energy Oil trading from $103 to $108/bbl. through Aug. • Housing sales Existing homes down 1.5% in '14; new ones up 8% • Retail sales About 4% growth in '14 • Trade deficit Unchanged from '13; U.S. growth pulling in more imports
Large cap Small cap Mid cap Stocks, Bonds, Mutual Funds, Blue Chip Bull vs. bear market volatile, downturn, plunge, plummet, sluggish, rally etc. P/E ratio, EPS, moving average DIJA, NYSE, ROI, SEC, IPO Debt/equity ratio Dividends Balance sheet Assets vs. liabilities Balance sheet: Inventory, overhead, depreciate, receivables, payables