Newsletter Login



Forget your login?

Q & A

The global conversion to 5G wireless networks has generated a lot of talk. How should we play that trend?

Read More from Q&A

Tools & Resources

Paper Profit (Loss)

An unrealized gain (loss) on a security. Paper profits or losses are realized when the security is sold.

Par Value

Refers to the dollar amount assigned to a share of stock by a company's charter and which rarely reflects the market price. The par value of a preferred stock is the value upon which dividends are paid.

Passed Dividend

Refers to an omitted dividend on cumulative preferred stock.

Payout Ratio

The percentage of earnings paid out as a dividend.

P/E Ratio

See Price-Earnings Ratio


Relating to a stock, a point means $1. Relating to a bond, a point means 1%. Relating to invest rates, a  point means 1/100 of a percent. See Basis Point.


An individual's or company's security holdings.

Portfolio Manager

A person who manages another's portfolio. Also a person who manages a mutual fund, pension fund, profit-sharing plan, or bank trust.

Preferred Stock

Stock that entitles the holder to a dividend at a specified rate that is paid before a common stock dividend is paid.


The price paid for a fixed-income security above its par value.

Price-Earnings Ratio

Probably the most used of all valuation ratios, the price-earnings ratio (also called P/E ratio or P/E multiple) permits an investor to analyze the price of a particular stock or compare the prices of different stocks. A lower P/E ratio indicates that a particular stock is trading at a less expensive market price than another stock with a higher P/E ratio based on the level of each firm's earnings.

Price-Earnings Ratio = Market Price of the Stock
Earnings Per Share of the Firm

Prime Rate

A preferential interest rate charged by a commercial bank only to its most credit-worthy customers.


The face value of a bond. Also refers to a person who owns 10% or more of a company's outstanding voting stock, an investor's capital base, or a trade involving a dealer.

Principal Amount

The face amount of a loan or face amount or par value of any debt security.

Profit and Loss Statement

Also referred to as a "P&L." A statement listing a company's income, expenses, and net profit or loss for a defined period.

Profit Taking

A term used to explain a drop in a stock price or in the general market absent of bad economic or financial news. The idea is that the reason investors are selling is to lock in profits.

Profitability Ratios

A series of ratios that measure the effectiveness of a firms profit generating abilities.


An official selling document that must be distributed to purchasers or potential purchasers of new securities that are registered with the SEC. In relation to a stock, this document is sometimes referred to as a "Red Herring."

Proxy Statement

A document which contains a variety of corporate information such as top management pay, a five-year performance graph that compares the stock against relevant indexes, and information concerning a company's board of directors. It also discloses the name and position size of any shareholders that own 5% or more of the company's stock. It is mailed at least annually to all shareholders of a particular firm so that they may vote on certain items relating to the company.

Public Offering

The original sale of a company's securities to the investing public.

Publicly Available Information

Information about a company that is readily available to the public.


An option to sell a security at a stated price.

More Investment Newsletters and Services

Drip Investor

DRIP Investor — how you can buy dividend-paying stocks without a broker.

Visit us at DRIP Investor, your source for dividend reinvestment plans.

Lazy Investor

The Lazy Investor — free weekly e-letter that delivers market updates and stock market information via email.

Visit us at The Lazy Investor, our free investment newsletter.

Horizon Investment

Horizon — registered investment advisor seeks to provide investors at all stages the ability to build, preserve and enjoy wealth.

Visit us at Horizon Investment Services to get started in an investment program that's right for you.


Upside — discovers today's small and midcap stocks poised to be tomorrow's Blue Chip leaders.

Visit us at Upside, your guide to the best buys in small and midcap stocks.

Current Hotline

Friday, July 19, 2019

Talk of a potential recession seems to have reached everywhere except inside retail stores

Read More from the Hotline

Stock Spotlight

LPL pushes its lead on the pack

Wednesday, July 17, 2019

The largest independent broker-dealer in the U.S., LPL Financial ($85; LPLA) is an outlier among investment banking and brokerage stocks in the...

Read More from Stock Spotlight

Individual Stock Reports

ISRs make stock research easy!

Perhaps the most valuable two page reports available anywhere.

All the data you would normally have to plow through years of 10-K filings, earnings reports, and reams of market data to assemble — yours all in one concise report.

ISRs contain our proprietary Quadrix scores — find out how we rate all the stocks in the S&P 500.

Visit us at