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Stock price is heading down.

The private offering of a security to a small group of buyers. Resale of the security is limited. See Best Efforts and Bought Deal Underwriting.

The process whereby an in-depth examination of a company’s business prospects is conducted.

Earnings without considering certain expenses such as inventory write downs, severance pay, depreciation and amortization charges, or just about anything else the company feels like excluding to make its earnings look better. Also known as core earnings, ongoing earnings, earnings excluding special items, or operating earnings. 

A method of allocating shares in an IPO where you specify how much you’re willing to pay for how many shares.

What is left over for the owners of a business after all expenses have been deducted from revenues. Gross profit is the profit before corporate income taxes. Net profit is the final profit of the business after taxes have been paid.

Cash or stock paid to shareholders, usually on a quarterly schedule.

Latest share price divided by 12-month earnings per share (eps). Also a measure of the market’s enthusiasm for a company.

Latest share price divided by 12-month sales per share.

Investing a fixed amount of dollars in a specific security at regular set intervals over a period of time. Dollar cost averaging results in a lower average cost per share, compared with purchasing a constant number of shares at set intervals. The investor buys more shares when the price is low and buys fewer shares when the price is high.