Finance Glossary
A
Accounts Payable Turnover Ratio
The Account Payable Turnover Ratio (or APT ratio) is used to measure the length of time that is needed for a company to repay (liquidity of the company) its suppliers.
Accounts Payable Turnover Ratio = Cost of Goods sold/Accounts Payable
Acid Test Ratio
The Acid-Test ratio measures the short term liquidity of a company. During an Acid-Test analysis the short term assets are weighted against the current liabilities.
After-tax profit margin
B
Large and creditworthy company.Company renowned for the quality and wideacceptance of its products or services, and for its ability to make Money and pay dividends.
Bollinger Bands
Bonds
C
The current market price value of a company’s entire issued securities. This figure includes every security type issued.
Central Banks
Current Ratio
D
Debt To Equity Ratio
Deflation
Diluted Shares:
All the shares, options, and warrants converted into shares at one point of time, usually at the end quarters.
Dividend preference shares:
Embodies higher dividend priority, but lower voting rights.
E
G
Great Depression
Growth stocks:
Some companies’ stocks have shown or are expected to show quick earnings and revenue growth.
L
Liquidity:
Liquidity refers to how quickly and cheaply an asset can be converted into cash. Money (in the form of cash) is the most liquid asset.
O
Options:
Give additional or differentiated rights of the holder of the shares.
P
Payout Ratio
PEG Ratio
Plowback Ratio
Price/Earnings per Share (P/E)
Price/Sales Ratio
Primary Shares:
All the shares that are issued and can currently be traded with on the exchanges.
Pro Forma:
The words indicate that assumptions were used to derive whatever number is being discussed.
R
Revenue:
The entire amount of income before any deductions are made.
S
Shares
Shares Outstanding:
The shares of a corporation's stock that have been issued and are in the hands of the public.
Stock Market Bubbles
V
Voting Preference Shares:
Give higher priority voting rights to other share types, but lower priority to dividend payments.
W
Warrants:
Types of options that the holder can, after a pre-set amount of time which usually is five to ten years, use.