The number of shares that will be outstanding after an IPO.
Archives
Price to Earnings Ratio (p/e)
Latest share price divided by 12-month earnings per share (eps). Also a measure of the market’s enthusiasm for a company.
Open
This is the price at which a security opens for the trading day. A stock can open at the previous closing price, gap up or gap down.
Diluted Earnings (a.k.a. fully diluted earnings)
Total of after tax (bottom line) earnings divided by number of common shares including unexercised stock options, and unconverted preferred stock and convertible bonds. Undiluted earnings would be after tax earnings divided by issued stock only, not considering outstanding options, etc.
Preferred Shares
These are a type of stock issued by a company. Preferred shares give such shareholders a fixed dividend from the company’s earnings. Preferred shareholders also get paid before common shareholders.
Investment Capital
Initial investment capital necessary for starting a business. Investment capital usually consists of inventory, equipment, pre-opening expenses and leaseholds.
Open End Mutual Fund
Investors buy shares directly from fund, and sell shares directly to fund. Share price is Net Asset Value (NAV).
Price to Sales Ratio (p/s)
Latest share price divided by 12-month sales per share.
Direct Stock Purchase Plan (DSP)
A plan implemented by a corporation allowing purchase of shares, or fractions of shares, directly from the company, usually on a regular basis.
Preferred Stock
Debt instruments. Preferred shareholders are paid ahead of common stock holders in the event the corporation is liquidated. Convertible preferred shares can be converted into common stock according to predetermined conditions.