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Finance Glossary

Updated on May 29, 2013

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

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


Bonds

C

Capitalisation:

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

Earnings:

The net profit, that is after tax.

Earnings per Share (EPS)

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.

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    • Csanad profile image
      Author

      Csanad 8 years ago from Budapest, Hungary

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

    • sophieqd profile image

      sophieqd 8 years ago

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

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