| Term |
Details |
| Book Value / Net Assets |
Book Value= Total Amount Of Company’s Physical Assets (Excluding Goodwill, Patents) – Liabilities. |
| Inflation Rate |
It indicates that price rates are going up has slowed down to a certain extent. |
| Market Volume |
It reported as the number of shares that changed hands during a given day.
The transactions are measured on stocks, bonds, options contracts, futures
contracts and commodities. |
| P/E Ratio (Company’s (Stock Price / Earnings Per Share)) |
It is used in valuing companies. Example: If stock A is trading at $30 and the earnings per share for the most recent 12-month period is $5
Stock A P/E ratio= 30/5 or 6.
|
| Dividend Yield / Dividend Price Ratio |
It of a share is the dividend per share, divided by the price per share.
DIVIDEND YIELD= (company's total annual dividend payments/ market capitalization)
At number of shares is constant.
|
| Beta |
It is a measure of a stock's volatility in relation to the market. The individual stocks are ranked on how much they deviate from the market.
Risk free rate= 2 %, Stocks rate of return=7%, Market rate of return=7%-2%=5%
BETA < 1,The Stock is less Volatile then the market a whole.
BETA > 1,The Stock is more Volatile then the market a whole.
BETA < 0,The Stock is losing money while the market as a whole is gaining.
|
| Face Value |
It is the nominal / dollar value of a security stated by the issuer. |
| Stocks |
It is the original cost of the stock shown on the certificate |
| Bonds |
It is the amount paid to the holder at maturity. |