Current Hotline
Wednesday, September 8, 2010
The economically sensitive Dow Transports have gained nearly 8% since Aug. 24, reflecting hope that the U.S. economy…
Glossary of Commonly Used Financial Terms
Index A B C D E F G-H I-K L M N O P Q-R S T U-Z |
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A financial summary report that a company issues after the close of each of its fiscal year quarters.
This ratio is also called the acid test ratio and is similar to the current ratio, except inventories are subtracted from current assets before current assets are divided by current liabilities. An investor should be wary if the quick ratio is below 0.5, out of line with its industry, and/or showing a declining trend.
| Quick Ratio = | Current Assets - Inventories |
| Current Liabilities |
The highest bid to buy and the lowest offer to sell a security at a given time.
A sharp rise in the price of a stock or general market.
Materials used to manufacture a product. Listed under inventories in a firm's balance sheet.
The date by which an individual must be a registered shareholder in order to receive a declared dividend.
See Prospectus
The price at which a bond may be redeemed before maturity at the option of the issuing company.
A person who manages another's portfolio. Also a person who manages a mutual fund, pension fund, profit-sharing plan, or bank trust.
A charge (expense) taken against earnings to cover the cost of "restructuring" a firm's operations. A restructuring often includes such items as closing unprofitable divisions or laying off employees.
A balance sheet account which shows the cumulative total of net earnings that were not distributed as dividends to shareholders. Also known as earned surplus.
This calculation shows the rate of return that a company has achieved on shareholders' investment. A higher figure indicates a higher return. To calculate an average shareholders' equity figure, add the shareholders' equity amounts shown on the balance sheet for the current year and prior year together and divide by 2.
| Return on Equity = | Net Income |
| Average Shareholders' Equity |
The net sales of a company.
A limited-term option to purchase a security at a specific price.
Generally speaking, the higher the risk of loss, the greater the potential return. Conversely, the lower the risk of loss, the lower the potential return.
A unit of trading, generally 100 shares in stocks and $1,000 par value in bonds.
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Stock Spotlight
J.P. Morgan Chase: Best of the banks
Wed., September 8, 2010
At J.P. Morgan Chase ($39; JPM), costs related to the financial meltdown were steep. The bank slashed its once-rich dividend 87% and accepted a $25 billion federal loan to backstop its balance sheet. Shares lost more than...
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