@DealsDhamaka First aid response to a sudden stroke, “FAST”
Face: Check if one side of the face droops.
Arms: ask to raise both arms. See if one arm drifts downward.
Speech: Ask the person to talk. Listen for slurred speech.
Time: If you notice any of this, no time, call ambulance
101 Financial Terms everyone should know
Financial literacy should be taught at every level in our education system.
But it's not.
Which means it's up to us to teach ourselves and our families.
To help you with that, I've compiled 101 of the most important financial terms every adult MUST know (and also teach their children)
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Ask Price - The price at which someone is willing to sell a security or asset.
Balance Sheet - A financial statement that summarizes a company's assets, liabilities and shareholders' equity.
Bear Market - A market in which prices are falling over a sustained period.
Bid Price - The price a buyer is willing to pay for a security or asset.
Blue Chip Stocks - Stocks of large, well-established companies that are considered financially sound.
Bond - A fixed income investment where an investor loans money to a company or government for a set period of time.
Book Value - The value of a company's assets minus its liabilities and intangible assets.
Bottom Fishing - Buying stocks at very low prices in hopes they will rebound.
Bull Market - A market in which prices are rising over a sustained period.
Capital Gain - The profit earned from selling an investment at a higher price than purchased.
Capital Loss - The loss incurred from selling an investment at a lower price than purchased.
Cash Flow - The net amount of cash moving into and out of a business.
Commission - The fee paid to a broker for executing a trade.
Commodity - A basic good or raw material such as oil, grains, metals that is interchangeable with another of the same type.
Compound Interest - Interest calculated on the initial principal and accumulated interest.
Correction - A decline of 10% or more in the price of a security from its most recent peak.
Credit Rating - An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.
Day Trading - Buying and selling financial instruments within the same trading day.
Debt to Equity Ratio - A measure of financial leverage calculated by dividing total liabilities by shareholders' equity.
Defensive Stocks - Stocks that provide stable earnings and dividends in good and bad economies.
Depreciation - An accounting method to allocate the cost of a tangible asset over its useful life.
Dilution - The reduction in the ownership percentage of a share of stock caused by the issuance of new shares.
Diversification - The strategy of investing in a variety of assets to reduce risk.
Dividend - A distribution of a portion of company's earnings to shareholders.
Dollar Cost Averaging - Investing money in equal amounts at regular intervals.
Earnings Per Share (EPS) - Earnings attributable to each outstanding share of common stock.
EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization. A measure of operating performance.
Equity - Ownership interest in an asset after liabilities are subtracted.
Exchange Traded Fund (ETF) - An investment fund that tracks an index but trades like a stock.
Execution - The completion of a buy or sell order for a security.
Expense Ratio - The annual fee that covers the expenses of an investment fund.
Fundamental Analysis - Evaluating a security by examining related economic and financial factors.
Futures Contract - A legal agreement to buy or sell a commodity at a predetermined price at a specified time in the future.
Growth Stocks - Stocks of companies expected to have higher than average growth in revenue and earnings.
Hedge Fund - An aggressively managed portfolio of investments using advanced strategies.
Index Fund - A fund that tracks a market index.
Inflation - The rate at which the average price level of a basket of selected goods increases over time.
Initial Public Offering (IPO) - The first sale of stock by a private company to the public.
Interest Rate - The amount charged to borrow money, typically expressed as a percentage.
Intrinsic Value - The actual value of a company or asset based on fundamentals.
Investment Bank - A financial intermediary that performs services like underwriting, mergers and research.
Junk Bonds - Bonds rated 'BB' or lower indicating higher risk of default.
Liabilities - Money owed by a company to outside parties, like bank loans.
Liquidity - The degree to which an asset can be bought or sold without impacting the price.
Listed Company - A company whose shares are traded on an exchange.
Long Position - Owning a security outright with the expectation that it will rise in value.
Margin - The use of borrowed funds to purchase investments.
Market Capitalization - The total dollar value of all outstanding shares computed as shares times current price.
Money Market Fund - A mutual fund that invests in short term debt like cash, cash equivalents and bonds.
Moving Average - The average price of a security over a set period of time.
Mutual Fund - A professionally managed portfolio of securities owned by different investors.
Net Asset Value (NAV) - The value of an entity's assets minus its liabilities.
Net Income - Revenue minus cost of goods sold, expenses and taxes.
P/E Ratio - The price of a share divided by earnings per share.
Portfolio - A collection of investments like stocks and bonds owned by an investor.
Preferred Stock - A stock with a fixed dividend and priority over common stock in dividends and liquidation.
Price to Book Ratio - The price per share divided by book value per share.
Private Company - A company owned by private individuals not publicly traded on an exchange.
Prospectus - The document that describes a security for potential buyers.
Realized Gain/Loss - The actual capital gain/loss from selling a security.
Recession - Two consecutive quarters of economic decline measured by GDP.
Resistance - A price level at which rising stock prices may turn downward.
Return on Assets - Net income divided by average total assets. Measure of profitability.
Return on Equity - Net income divided by average shareholders' equity. Measure of profitability.
Revenue - Total income generated by the sale of goods or services.
Risk Tolerance - An investor's ability to handle declines in the value of their portfolio.
Securities - Tradable financial assets like stocks and bonds.
Share - A unit of ownership in a company.
Short Selling - Selling borrowed shares in hopes of buying them back later at a lower price.
Spread - The difference between the bid and ask price of a security.
Stock Split - Increasing the number of shares outstanding by issuing more to current shareholders.
Substantive Growth - Growth based on increased productivity and fundamental value, not inflation.
Support Level - A price level at which falling stock prices may turn upward.
Ticker Symbol - Abbreviation used to identify publicly traded shares.
Trading Volume - The number of shares traded during a given period of time.
Unrealized Gain/Loss - Gain/loss from securities still held in a portfolio.
Volatility - The degree of variation in the price of a security over time.
Volume - The number of shares or contracts traded in a security over a given period of time.
Yield - The income return on an investment like dividends or interest.