Glossary Of Terms

There’s a lot of investing jargon out there. We created this resource to help you to enhance your investing experience. We’re updating this page all the time.

Investing

Dividend

The distribution of some of a company’s earnings to its shareholders

Dividend Yield

The percentage yield that a company pays each year relative to the share price.

Dollar Cost Averaging

Investing a the same amount of money into the stock market every month no matter if the share price is at its lowest or at its peak.

ETF (Exchange Traded Funds)

A collection of companies who performance is replicated and tracked. An ETF can be traded at all times throughout the trading hours.

Ex-Dividend Date

The date by which a shareholder must hold shares of a company to be eligible to receive the next dividend payout.

EPS (Earnings Per Share)

This is the amount a company earns per share and is calculated by dividing the company’s profit by the number of outstanding shares.

Index Fund

A collection of companies whose performance is replicated and tracked. Unlike ETF’s which can be traded throughout the trading day, an index fund can only be bought or sold at the price at which the market closes.

P/E (Price To Earnings) ratio

This is the ratio that values a company against its share price.

PEG (Price/Earnings To Growth) ratio

This is used to determine the value of a stock. It is calculated by dividing the P/E ratio by the company’s growth rate.