Model

A strategy for selecting stocks using screening criteria that have been found to work in the past.

Momentum Analysis

Usually involves looking for stocks in a strong uptrend (high relative strength), strong earnings growth, and increasing earnings forecasts. In today’s market, may include relative strength only.

Momentum Stocks

Companies currently in favor by investors (price/sales greater than 10, price/earnings greater than 35 or so).

Inventory

Raw materials, work in process, and finished goods that haven’t been shipped to customers.

Investment Advisor

A person employed by an investment dealer who provides investment advice to clients and executes trades on their behalf in securities and other investment products.

Investment Bank

An organization, usually a stock brokerage firm, involved in taking a new company public (IPO), consulting on mergers and acquisitions, handling corporate borrowing, etc.

Investment Capital

Initial investment capital necessary for starting a business. Investment capital usually consists of inventory, equipment, pre-opening expenses and leaseholds.

Investment Dealer

Securities firms that employ investment advisors to work with retail and institutional clients. Investment dealers have underwriting, trading and research departments.