Reference
Stocks
The language of markets, defined plainly — the terms our coverage uses and what they actually mean.
D
- Dividend
- A share of profits paid out to shareholders, usually in cash and often quarterly. Dividend yield expresses the annual payment as a percentage of the share price.
E
- Equity
- An ownership stake in a company. Shareholders have a claim on profits and assets after every creditor has been paid, which is why equity is riskier than the same company's debt.
G
- Guidance
- A company's own forecast of its coming results. In a central-bank context, forward guidance instead means signalling the likely path of interest rates.
I
- IPO
- The first sale of a company's shares to the public, after which they trade on an exchange.
V
- Valuation
- An estimate of what an asset is worth, whether from multiples such as P/E, from discounted future cash flows, or from comparison with similar assets.