Author: todorm

A market that issues new securities on an exchange, aided by underwriting groups and consisting of investment banks.

A pre-approved financial institution that is authorized to make business deals with the United States Federal Reserve.

A stock market index in which each stock makes up a fraction of the index that is proportional to its price per share.

The spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond, or commodity.

A ratio that compares a company’s stock price to its revenues, helping investors to make good investments.

A ratio that measures the current share price relative to the per-share earnings.

A ratio that measures the value of a stock’s price relative to its operating cash flow per share.

A ratio that compares a company’s market value to its book value.

An accounting tool used to measure the operating efficiency of a company.

The price that traders pay for a put or call options contract.