FACT 3: Resources

Basic Investing Terms

• Market capitalization

  Market capitalization, also called market cap, is the overall price of the company as measured by…more »

• Financial statement

  The financial statements include the Income Statement, Balance Sheet, Statement of Shareholders’… more »

• Cash flow statement

  A company’s cash flow statement provides an overview of all cash-related activities for a given…more »

• Earnings per share

  Earnings per share is the company’s total earnings or net income divided by its shares outstanding.…more »

• Income statement

  The income statement tracks a company’s revenues, gross profits, operating income or loss, and net… more »

• Operating margin

  Operating margin is defined as Operating Profit divided by Revenue (or Sales). more »

• Free cash flow

  Free cash flow is the cash a company produces from its operations less the cost of expanding its…more »

• Dividend yield

  Dividend yield is simply the annual dividend divided by the current share price, expressed as a…more »

• Balance sheet

  The balance sheet is one of four financial statements. It shows the financial position of a company… more »

• Gross margin

  Gross Margin or gross profit margin is gross profit divided by revenue (or sales), expressed as a…more »

• Stock split

  A stock split simply involves a company altering the number of its shares outstanding and… more »

• Net income

  Net income is a company’s earnings or profit as reported on the income statement. Revenue minus all… more »

• Net margin

  Net margin is defined as net income divided by revenue (or sales). more »

• P/E ratio

  The P/E ratio is defined as the market price per … more »