New Cen Cap are a successful Stockbroker Company based in Austria and the UK providing first-rate advice to small and large corporate investors.
A
Analyst: someone typically working for a brokerage house, who publishes buy/hold/sell recommendations and earnings forecasts for a stock. Buy side analysts work for institutional buyers, and sell side analysts work for brokerages.
Asset Allocation: the process of dividing your funds among different classes of investments such as stock, bond, or real estate. You could further allocate your stock funds into value, growth, foreign, etc.
B
Balance Sheet: A financial statement listing a company's assets (what it owns) and liabilities (what it owes) as of a specific date, usually the last day of a company's fiscal quarter. The difference between a company's assets and liabilities is termed its net worth or shareholder's equity.
Bear Market: a period when most stocks are declining in value.
Bond: a long-term promissory note issued by a corporation.
Bottom Line: after-tax earnings. Literally, the bottom line on an income statement (a.k.a. net income or profit).
Bull Market: a period when most stocks are increasing in value.
C
Cash & Cash Equivalents: cash in bank and all securities that can readily be converted to cash within three months or less.
Charting: making buy and sell decisions based entirely on stock price and volume history (same as technical analysis).
Commission: fees paid to a broker to execute a stock or mutual fund trade.
Consolidation: a charting term meaning a stock price is in a trading range, not moving significantly up or down.
Convertible Bond: a bond that can be exchanged for shares of stock.
D
Discount: the difference between a bond's face value and its current market price.
Dividends: cash or stock paid to shareholders, usually on a quarterly schedule.
Dividend Reinvestment Plan (DRIP): a plan implemented by a corporation to allow investors to collect dividends in shares (usually fractions of shares) of stock rather than in cash.
Dividend Yield: total of 12-month's dividends paid (historical or forecast) divided by the latest share price.
Due Diligence: the process whereby an in-depth examination of a company's business prospects is conducted.
E
Earnings per Share (EPS): after tax 12-month's earnings divided by the number of shares outstanding.
EPS: earnings per share.
Extended Hours Trading: trades executed outside normal market hours.
EBIT: earnings before interest and taxes. Also known as operating income.
F
Fair Value: the true value of a stock based on criteria of the user's choosing. A stock is said to be overvalued when the share price exceeds the fair value.
Fiscal Year: any 12-month period designated by a corporation as their accounting year. Once set up, a corporation's fiscal year does not change.
Full Service Broker: a stockbroker offering investment advice and other services not usually.
G
Goodwill: the amount of a company's shareholder's equity that exceeds the value of its hard assets.
Gross Margin: gross profit divided by sales.
Growth Stocks: companies with consistent annual earnings and sales growth of at least 15%.
I
Initial Public Offering (IPO): first sale of stock to the public by a corporation.
Insider Ownership: number of shares owned or controlled by insiders.
Intraday: stock trading tracked in periods shorter than one day.
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.
L
Large-Cap: company with market capitalization greater than $8 billion.
Limit Order: order with broker to buy stock at limit price or less, or to sell stock at limit price or higher.
M
Market Order: order with broker to buy or sell stock at current market price.
Mid-Cap: company with market capitalization between $2 billion and $7 billion.
Model: a strategy for selecting stocks using screening criteria that have been found to work in the past.
N
NASDAQ: national market for trading stocks.
Net Income: After-tax earnings (a.k.a. bottom-line or profit). Earnings per share (EPS) is net income divided by the number of outstanding shares.
P
Payout Ratio: Percentage of earnings paid out in dividends.
Portfolio: a group of stocks, mutual funds, or other securities.
Post-Offering Shares: the number of shares that will be outstanding after an IPO.
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.
Profit Margin: bottom line (after tax) earnings divided by sales.
R
Range: high and low trade prices for the day, week, or month.
Research and Development (R&D): costs of developing new products and services.
Return on Equity: after tax income (latest 12 months) divided by shareholder's equity (from balance sheet).
Revenues: a company's sales
S
Sales per Share: annual sales divided by the number of shares outstanding.
Settlement: the process of paying for stocks you purchase, or receiving credit from your broker for the stocks you sell. Most stock transactions must be settled within three business days.
Small Cap: company with market capitalization less than $1 billion.
Spread: the difference between the bid and ask prices for a stock.
T
Technical Analysis: making buy and sell decisions based entirely on stock price and volume history (same as charting).
Turnover Ratio: how often a mutual fund changes its portfolio holdings. 100% turnover means a fund, on average, changes all the stocks in its portfolio once a year.
U
Undervalued: a stock trading below its fair value.
Uptrend: stock price is trending higher.
V
Value Investor: one who looks for out of favor (value priced) stocks
Venture Capitalist: an investor involved in financing a company's operations before going public in exchange for an ownership percentage.
