– Definitions & Terms –

Asset – Anything having commercial or exchange value that is owned by a business, institution, or individual.

Cyclical Stock – Stock that tends to rise quickly when the economy tunes up and falls quickly when the economy turns down.

Dividend – distribution of earnings to shareholders, prorated by class of security and paid in the form of money, stock, scrip, company products or porperty.

EBIT – Earning Before Interest and Taxes

EPS – Earnings Per Share

Entrepreneur – a person who takes on the risk of starting a new business

Free Cash Flow – represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.text

Fractional Share – a unit of stock less then one full share.

Growth Stock – stock of a corporation that has exhibited faster–than–average gains in earnings over the last few years and is expected to continue to show high levels of profit growth.

Index Fund – whose portfolio matches the of a broad–based index such as Standard & Poors Index whose performance therefore mirrors the market as a whole.

IPO – initial public offering

Interim Dividend – declared and paid before annual earnings have been determined, generally quarterly. Most companies strive for consistency and plan quarterly dividends they are sure they can afford,

Price–to–Earnings – price of a stock divided by its earnings per share.text

REIT – real estate investment trust

Tax–Loss Harvesting – the selling of securities at a loss to offset a capital gains tax liability

Yield – percentage rate of return paid on a common or preferred stock in dividends