Investing Basics for Students

P/E Ratio

• Price-to-Earnings ratio, valuation measure

• Price-to-Equity ratio, investment metric

• Price-to-Earnings growth, financial indicator

• Price-to-Expense ratio, cost analysis

Blue Chip Stocks

• Shares in large, stable companies

• High-risk stocks with potential for high returns

• Stocks of newly established companies

• Shares in companies with fluctuating earnings

Yield

• Income return on an investment

• A type of investment strategy

• The total amount invested

• A measure of risk in investments

Mutual Fund

• Pool of funds from many investors

• A type of stock investment

• A government bond

• A real estate investment trust

Return

• Profit from an investment

• Loss from an investment

• Total revenue generated

• Initial capital invested

Bull Market

• Rising stock prices

• Falling stock prices

• Stable stock prices

• Volatile stock prices

Risk

• Potential for loss in investment

• Guaranteed profit from investment

• Stable returns on investment

• No chance of loss in investment

Dividend

• Share of profits paid to shareholders

• A type of tax on corporate earnings

• A fee paid to financial advisors

• A method of calculating interest rates

Bear Market

• Rising stock prices

• Stable stock prices

• Falling stock prices

• Volatile stock prices

Liquidity

• Ease of converting assets to cash

• The total amount of money in circulation

• The ability to generate profit from investments

• The process of managing financial risks