Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
37 Cards in this Set
- Front
- Back
|
valuation ratio |
a comparison of the market price of a tock to the earnings-per-share or book value |
|
|
price-to-earnings ratios |
for common stock, the comparison of the price of the stock to the earnings per share |
|
|
growth stocks |
stocks trading at high multiples
|
|
|
value stocks |
stocks trading at low multiples
|
|
|
book value or book value per share |
the hard, tangible asset value associated with each share of common stock. Calculated by taking stockholder's equity minus preferred shares, divided by the number of shares outstanding |
|
|
price-to-book-ratio |
the market price of common stock compared to the book value per share |
|
|
price-to-sales |
the market price of a common stock compared to the revenue per share.
|
|
|
price-to-cash |
the market price of a common stock compared to the cash flow per share
|
|
|
market cap (capitalization) |
the total value of an issuer's outstanding shares |
|
|
growth stocks |
a stock in a company expected to outperform the market and trading at a high valuation ratio, e.g. p/e
|
|
|
growth investor |
an investor with an objective of seeking capital appreciation
|
|
|
value investors |
someone investing in stocks trading at low p/e or price-to-book ratios |
|
|
value stocks |
stocks trading at low p/e or price-to-book ratios |
|
|
active manager |
An investment approach that seeks our particular stocks (or bonds) |
|
|
passive manager |
an investment approach that simply buys "growth" or "value" index funds
|
|
|
technical analysts |
stock traders who rely on market data to spot buying and selling opportunities rather than information on the companies who issue stocks
|
|
|
volume |
total number of shares traded over a given period (daily, weekly, etc.)
|
|
|
chartists |
a technical analyst making trading decisions based on stock charts and patterns |
|
|
trendline |
the overall upward, or downward, or sideways pricing trend of a stock or index as revealed by a chart
|
|
|
support |
lower limit of a trendline
|
|
|
resistance |
higher limit of a trendline
|
|
|
market being oversold |
a stock's arrival at the support price |
|
|
breakout |
when the stock's price breaks through the resistance |
|
|
"head and shoulders" |
chart pattern used by technical analysts to determine that a bull or bear trend is about to reverse
|
|
|
bearish |
investor who takes a position based on the belief that the market or a particular security will fall. Short sellers and buyers of puts. They profit when stocks go down
|
|
|
inverted head and shoulders (H&S bottom) |
a reversal of a down trend
|
|
|
bullish |
an investor who takes a position based on the belief that the market or a particular security will rise. Buyers of stock and call options.
|
|
|
consolidation |
a stock trading sideways, in a narrow price range. sometimes called accumulation |
|
|
advance-decline ratio |
the number of stocks whose market prices increased versus the number of stocks whose market prices decreased during a trading session
|
|
|
moving average |
simply replaces the oldest piece of data with the newest on a rolling basis. It helps to spot a trend. |
|
|
200-day moving average |
average closing price over the previous 200 days for a stock or an index |
|
|
odd-lot |
order for less than the usual trading unit for a security, e.g. fewer than 100 shares of common stock
|
|
|
odd-lot theory |
investment approach that does the opposite of what odd-lot investors are doing
|
|
|
short interest theory |
theory that a high level of short sales is a bullish indicator, as it creates potential buying pressure on a particular security
|
|
|
market being overbought |
a stock's arrival at the resistance threshold |
|
|
Short sellers and buyers of puts are |
bearish |
|
|
Buyers of stock and call options are |
bullish |
