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Surplus cash generated from company’s basic operations without regard to income tax entries such as depreciation and amortization. Changes in levels of inventories, accounts receivable and accounts payable also affect cash flow. Also see Free Cash Flow. 

Not the same as operating income. See pro forma earnings. 

Sales minus all expenses except income taxes and other items not related to basic business.

Operating income divided by sales.

All options of the same type, either calls or puts, that have the same underlying security.

A set pattern of months when a class of options expires.

The buyer of an option contract who has the right to exercise the option during its lifetime.

An individual option contract for a given security.

A call or put contract.

The difference between a company’s or individual’s total assets and its total liabilities. Also known as shareholders’ equity for a company.