After tax 12-month’s earnings divided by the number of shares outstanding.
Archives
Market
The place where buyers and sellers meet to exchange goods and services. It also represents the actual or potential demand for a product or service.
EBIT
Earnings before interest and taxes. Also known as operating income.
Market Cap
This is a company’s market capitalization. To calculate the market cap, simply multiply the issued and outstanding shares by the current selling price.
EBITDA
Earnings before interest, taxes, depreciation and amortization. Adds these items back to reported earnings to more accurately reflect real cash earnings of company. Similar to operating cash flow, except operating cash flow also considers changes in levels of inventories and receivables.
Long-Term Investments
Balance sheet item reflecting investments in other companies, etc.
Due Diligence
The process whereby an in-depth examination of a company’s business prospects is conducted.
Margin
Margin allows investors to buy securities using borrowed money from a broker. The investor is charged interest for the loan. Margin requirements differ depending upon the type of transaction being made or the type of stock being purchased, e.g., selling puts, buying stock, credit spreads. Options are not generally marginable.
Dutch Auction
A method of allocating shares in an IPO where you specify how much you’re willing to pay for how many shares.
Listing Application
The document that an issuer completes and submits to an exchange when it applies to list its shares on the exchange. The issuer must disclose its activities, plans, management and finances in the application.