Finance Glossary


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


Blue Chip Companies:

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




The current market price value of a company’s entire issued securities. This figure includes every security type issued.

Central Banks

Current Ratio


Debt To Equity Ratio


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.



The net profit, that is after tax.

Earnings per Share (EPS)


Great Depression

Growth stocks:

Some companies’ stocks have shown or are expected to show quick earnings and revenue growth.



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.



Give additional or differentiated rights of the holder of the shares.


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.



The entire amount of income before any deductions are made.



Shares Outstanding:

The shares of a corporation's stock that have been issued and are in the hands of the public.

Stock Market Bubbles


Voting Preference Shares:

Give higher priority voting rights to other share types, but lower priority to dividend payments.



Types of options that the holder can, after a pre-set amount of time which usually is five to ten years, use.

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Csanad profile image

Csanad 7 years ago from Budapest, Hungary Author

Thanks for the comment. I do plan to expand it and add more stuff to it sometime later.

sophieqd profile image

sophieqd 7 years ago

Great info I really will think about this. Thanks for sharing.

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