A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Earnings Per ShareA company's profit divided by its number of shares, showing how much it earns for each share owned.
- Value StockShares that appear priced below what the company seems worth, which some investors buy hoping for a rebound.
- Growth StockShares of a company expected to grow faster than average, usually reinvesting profits instead of paying dividends.
- Fundamental AnalysisStudying a company's finances, industry, and management to judge whether its stock is fairly priced.
- ValuationAn estimate of what a company or investment is worth, used to judge whether its price is reasonable.
- StockA share of ownership in a company that you can buy and sell, giving you a small stake in its profits and growth.
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Plain-English education — not personalized legal, tax, or investment advice.