5.23.2003
Glossary
Market value: The value of a company, calculated by multiplying the stock price by the number of outstanding common shares. Also called a company's market capitalization.
Revenue: Sales, or the amount a company brings in for selling goods and services.
Net income: Profits or earnings - the difference between sales and expenses or costs.
Assets: Anything with commercial or exchange value, such as property, equipment or machinery.
Equity: Net value or net worth the difference between total assets and total liabilities.
Stockholders' equity: The value of shareholders' interest in a company after all claims are paid.
Earnings per share: Profit allocated to each outstanding share of common stock. A company that earned $10 million and has 10 million shares has an EPS of $1.
Return on assets: Profits divided by assets a ratio that measures how efficiently assets are employed.
Return on equity: Profits divided by total equity a ratio that measures how well equity is invested.
P/E ratio: Price of a share of stock divided by its earnings per share, usually calculated on the latest year's earnings.
Symbol: Letters that identify a stock for trading, sometimes called the ticker symbol.
| 
