COMMON INVESTMENT TERMS EXPLAINED: Part 11

Welcome back to another round of common investment terms! Let us know if you have any questions about these.

EPS or Earnings per Share: This is calculated by dividing a company’s net revenue by the number of outstanding shares. This number is commonly used to compare different companies on a per share basis.

The Fed or Federal Reserve Board: This organization ultimately controls the nation’s interest rates. Consequently, The Fed has a tremendous influence on the stock market.

Fundamental analysis: This method for analyzing a stock looks at basic key ratios and attempts to understand the underlying business. This is normally undertaken to determine if additional analysis is worthwhile.

Growth Stocks: These stocks usually don’t pay a dividend, but instead choose to put profits back into the company to finance additional growth. Investors buy growth stock for its potential price appreciation as the company grows.

Thanks for reading! As usual, we’ve got more terms coming your way soon.