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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 |
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price-to-earnings ratios |
for common stock, the comparison of the price of the stock to the earnings per share |
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growth stocks |
stocks trading at high multiples
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value stocks |
stocks trading at low multiples
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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 |
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price-to-book-ratio |
the market price of common stock compared to the book value per share |
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price-to-sales |
the market price of a common stock compared to the revenue per share.
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price-to-cash |
the market price of a common stock compared to the cash flow per share
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market cap (capitalization) |
the total value of an issuer's outstanding shares |
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growth stocks |
a stock in a company expected to outperform the market and trading at a high valuation ratio, e.g. p/e
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growth investor |
an investor with an objective of seeking capital appreciation
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value investors |
someone investing in stocks trading at low p/e or price-to-book ratios |
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value stocks |
stocks trading at low p/e or price-to-book ratios |
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active manager |
An investment approach that seeks our particular stocks (or bonds) |
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passive manager |
an investment approach that simply buys "growth" or "value" index funds
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technical analysts |
stock traders who rely on market data to spot buying and selling opportunities rather than information on the companies who issue stocks
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volume |
total number of shares traded over a given period (daily, weekly, etc.)
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chartists |
a technical analyst making trading decisions based on stock charts and patterns |
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trendline |
the overall upward, or downward, or sideways pricing trend of a stock or index as revealed by a chart
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support |
lower limit of a trendline
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resistance |
higher limit of a trendline
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market being oversold |
a stock's arrival at the support price |
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breakout |
when the stock's price breaks through the resistance |
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"head and shoulders" |
chart pattern used by technical analysts to determine that a bull or bear trend is about to reverse
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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
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inverted head and shoulders (H&S bottom) |
a reversal of a down trend
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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.
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consolidation |
a stock trading sideways, in a narrow price range. sometimes called accumulation |
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advance-decline ratio |
the number of stocks whose market prices increased versus the number of stocks whose market prices decreased during a trading session
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moving average |
simply replaces the oldest piece of data with the newest on a rolling basis. It helps to spot a trend. |
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200-day moving average |
average closing price over the previous 200 days for a stock or an index |
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odd-lot |
order for less than the usual trading unit for a security, e.g. fewer than 100 shares of common stock
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odd-lot theory |
investment approach that does the opposite of what odd-lot investors are doing
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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
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market being overbought |
a stock's arrival at the resistance threshold |
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Short sellers and buyers of puts are |
bearish |
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Buyers of stock and call options are |
bullish |