What is an Investment?
An investment is an asset bought in the hope of generating income or profits over time. Sometimes an investment may carry risks of missing expectations.
What is a Stock?
A stock is a type of security that represents a portion of ownership in a company. There are two main types: common stock and preferred stock.
What is the Stock Market?
Stock trading is like an auction. A stock market is a place for sellers and buyers to trade in stocks.
What are Bull and Bear Markets
Bull and bear markets are common terms among investors. A bull market indicates optimism and growth while a bear market reflects pessimism and decline.
What is Return on Investment (ROI)
ROI is a common metric for investors to evaluate profitability. It's expressed as a ratio, namely the result of investment gain relative to its cost.
What is the Nasdaq Composite?
The Nasdaq Composite tracks nearly all of the companies that are listed on the Nasdaq stock exchange. The index comprises nearly 50% of tech stocks.
What is the S&P 500?
The S&P 500 is a stock market index that includes 500 of the largest U.S. companies, which has returned over 12% annually on average as of Aug. 2020.
What is the Dow Jones Industrial Average
The DJIA is a stock index that tracks the performance of 30 large U.S. companies, which has returned more than 7% annually on average (1896-2020).
What is a Dividend?
A dividend is a distribution of some company's profits to its shareholders. Matured companies are more likely to pay dividends.
What is a Share Repurchase？
Can share repurchase elevate the share price?
What is an Investment Portfolio
An investment portfolio is about diversified investment strategies. Diversified portfolios can better weather ups and downs in the markets.
What is Capital?
Capital refers to assets used by a company to create goods and services. Capital is important for company growth and wealth creation.
What is a Security?
Can a security have low risk, high profitability, and good liquidity?
What is a SPAC?
A SPAC is similar to a mystery box, becoming a popular way to list a company. It's essential to evaluate the founding team and the target sector.
What is ESG investing?
ESG stands for environmental, social and governance, which are the three criteria for evaluating a company's sustainability performance.
What is an Initial Public Offering (IPO)?
IPO is a way of raising funds without a loan. An IPO is a company's transition to a publicly-traded stock.
What is Equity?
Imagine a company as a big pie, and equity is a slice of it.
What is a Delisting?
Delisting means the removal of a listed stock from a stock exchange, and it can be voluntary or involuntary. Delisting does not affect your ownership.
What is Margin Trading?
Margin trading refers to the practice of using borrowed money from a broker to invest
What is Return on Equity (ROE)?
A financial ratio calculated by dividing its net income by its average shareholders' equity
What is a Mutual Fund?
A mutual fund is a collective investment that pools money from many investors. A mutual fund is a smart and easy way to diversify your investment.
Different Types of Mutual Funds
Mutual funds offer an easy and smart way to diversify your investment, usually in stocks, bonds, debts, and so on.
What is an Automatic Investment Plan
An automatic investment plan (AIP) is to invest a fixed amount of money in a fund at regular intervals.
What is an ETF (exchange traded fund)?
Many Exchange Traded Funds (ETFs ) are designed to passively track a particlar market index. These ETFs aim to achieve the same return as the index that they track, by investing in all or a representative sample of the stocks included in the index.
What is the PE ratio?
The PE ratio is the most commonly used valuation metric of listed companies
What is Return on Assets (ROA)?
A company's Return on Assets (ROA) is a financial ratio calculated by dividing a firm's net income by its average total assets
What is Return on Equity (ROE)?
A company's Return on Equity (ROE) is a financial ratio calculated by dividing its net income by its average shareholders' equity
What is the Quick Ratio?
A more conservative liquidity ratio than the current ratio
What Is the Current Ratio?
A liquidity ratio that measures a company's ability to pay its current liabilities with its current assets.
What is Book Value per Share (BVPS)?
Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the average number of outstanding shares during a specific period
What is Free Cash Flow to Firm(FCFF)?
Free cash flow to firm (FCFF) is a portion of a company's cash that could be distributed without affecting its operations. FCFF provides important insights into the value and health of a company.