Growth at a reasonable price. A strategy of buying stocks whose price/earnings ratio is equal to or less than the estimated annual earnings growth rate.
Archives
Generally Accepted Accounting Principles (GAAP)
Accounting rules and procedures established by the Financial Accounting Standards Board, an independent self-regulating organization.
Geographic Funds
Mutual funds specializing in a specific geographic area such as Europe.
Fully Diluted
Number of shares outstanding including options granted but not yet exercised.
Fundamental Analysis
Analyzing stocks by looking at earnings, sales, profit margins, etc.
Funds From Operations (FFO)
Used instead of earnings to evaluate real estate investment trusts (REITs). Depreciation of real estate that was deducted from earnings is added back in to calculate FFO. Any gains or losses from the sale of real estate is also removed.
Future Inflation Gauge
A private-sector index (1992=100) that attempts to predict the direction of inflation over the next 6 to 12 months.
Flying Plateau
A flying plateau is a pattern that forms after a stock has made a strong move up. Strong stocks will consolidate gains sometimes in a flat, sideways pattern in a tight range instead of selling back. This is a very bullish pattern, especially if it is formed on low volume. Picture a 45 degree rise and then a move sideways for several sessions. Strong stocks tend to rest in these patterns, and then start another leg up.
Free Cash Flow
Operating cash flow minus amounts spent on plants and equipment and minus dividends.
Freeze
An interruption in trading on a stock, triggered when an order violates parameters set by TSX.