Money

Articles Index

Minimum Margin

The minimum margin is the initial amount deposited before trading in a margin account.

Maintenance Margin

Investors are required to keep a minimun amount of equity in their accounts, which is a combination of cash and market value of their securities.

Margin Call

If you fail to keep your account at or above minimum maintenance, your broker will issue a margin call for you to either deposit more more or sell securities to cover the shortfall.

Margin

Margin is a way to finance your stock purchases by borrowing from your broker.

Yield

Yield to Maturity

Current Yield

Nominal Yield

Maturity

Coupon

Par Value

Earnings Per Share

Earnings Per Share is calculated by dividing a company's net earnings by the outstanding shares.

Business Cycles

Business cycles are the natural expansion and contraction of the economy as witnessed by the flow from recession to recovery.

Stock Screen

Stock screens are software tools that allow investors to select stocks based on a set criteria that define the investor's target.

Federal Reserve Board

Federal Reserve Board, also know as the “Fed,” controls the nation’s interests rates by setting the key rates.

Market Capitalization

Market Capitalization or market cap is a way of measuring the size of a company and is calculated by multiplying the current stock price by the number of outstanding shares.

Lagging Economic Indicators

Lagging indicators change only after the economy has changed.

Coincident Economic Indicators

Coincident indicators are economic measures that change at the same time as the economy.

Leading Economic Indicator

Leading indicator is an economic indicator that changes before the economy does.

Basis Point

Basis point is equal to one hundredth of one per cent.

Technical Analysis

Technical analysis relies on charts and data to predict the movement of stock prices rather than the business model of the company.

Class A Stock

Class A Stock is the common stock issued for public trading.

Class B Stock

Class B stock has special priveledges and is usually retained by the company founders.

Dividend Yield

Dividend yield is a way to look a the relative price of a stock compared to its dividend.

Dividend

Dividends are profits paid back to shareholders of the company