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See Operating Income.

A record of a company’s sales and expenses over a particular year or quarter. 

A security with a solid record of dividend payments and which offers a dividend yield higher than the average common stock.

Also called income funds. Income trusts are trusts structured to own debt and equity of an underlying entity, which carries on an active business, or has royalty revenues generated by the assets of an active business. By owning securities or assets of an underlying business, an income trust is structured to distribute cash flows, typically on a monthly basis, from those businesses to unit holders in a tax-efficient manner. The trust structure is typically utilized by mature, stable, sustainable, cash-generating businesses that require a limited amount of maintenance capital expenditures. An income trust is an exchange-traded equity investment that is similar to a common share. There are four categories of income trusts: business trusts; real estate investment trusts (REITs); energy trusts; and power, pipeline, and utility trusts.

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. 

A private-sector index (1992=100) that attempts to predict the direction of inflation over the next 6 to 12 months.

A company estimates the future profitability of a trade made today and books a profit today based on the present value of those estimated future profits.

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.

Accounting rules and procedures established by the Financial Accounting Standards Board, an independent self-regulating organization. 

Mutual funds specializing in a specific geographic area such as Europe.