An asset is something a company owns which generates money. Examples of current assets are cash, inventory, and accounts receivable. Examples of fixed assets are equipment, buildings, and real-estate.
If the underlying stock price is equal to the strike price of the option contract. This means that exercising the option will not earn you money.
A cash flow statement item which includes investments in property, plant and equipment, either for maintenance or growth purposes. Used to calculate free cash flow in the Discounted Cash Flow model.
|Cash flow statement|
A financial statement which depicts the actual cash inflows and outflows of the company.
|Cash from operating activities|
A cash flow statement item which indicates the amount of cash a company earns from its core, ongoing business activities.
An imaginary interest rate, most often equal to the long-term historical return of the stock market, which is used to calculate how much a dollar amount in the future is worth in today's money. This is the minimum return you would have to earn to justify stock picking over investing in an index fund.
|Dividend payout ratio|
The percentage of net income which is paid out to shareholders in the form of dividends, instead of being reinvested into the company.
The return you earn from dividends paid out by a company. This percentage is calculated as follows:
Dividend yield = Annual dividend per share / Current share price
|Earnings per share|
|exchange traded fund|
A low-cost, flexible investment fund which trades on an exchange, much like a stock. Most ETFs track an index or commodity.