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This isn't every term in the stock market universe, we just wanted to put together a resource to explain some of the most common terms you might hear on CNBC.
Earnings per Share Growth represents how a stocks earnings have grown or declined over the previous 12 months. EPS Growth = (Current Year EPS - Previous Year EPS) / Previous Year EPS EPS growth rate helps investors understand if a company's earnings have grown or declined over the last year.
The Dividend Rate is the annual dividend payment amount an investor can expect to receive from a security that pays dividends. Dividend Rate = Most Recent Dividend Payment x Number of Dividend Payment Periods per Year Dividend rate helps investors calculate the income they could potentially receive from each share that
The Price to Earnings to Growth (PEG) Ratio helps to determine a more accurate value of a stock by looking at the current PE Ratio and factoring its' expected earnings growth rate over a specified time frame. PEG Ratio = PE Ratio / EPS Growth Let's say Disney's P/E Ratio is
The Percent Change of a stock is just what it sounds like. It's the percentage change in the per share price of a security over a specific time period. Percent Change = Change in Price per share / Starting price per share The percent change helps investors more accurately compare stocks or
Revenue is the income that a company generates through the product(s) and/or service(s) that they provide. Sales Revenue = Sale Price * Units Sold In order for company to sustain growth or operating they must be able to generate sales in order to produce revenue for the company to
Volume is the total number shares that have traded during defined period of time. Volume = Number of shares traded in a period of time Volume is a widely used technical indicator that investors use to understand price swings and when to enter and exit an investment. A price swing is
The 200-day Simple Moving Average (SMA) is a technical indicator that observes the averages of closing prices for an individual equity over the previous 200 days. The 200-day SMA provides investors insights into the long term trends of a stock. Traders consider a stock price that is trading at or