A–Z equity reference: ownership, financial statements, valuation, earnings, dividends, and corporate actions.
Equity ownership, financial statements, valuation, earnings, dividends, and corporate actions — 172 stock-market terms, arranged alphabetically. Definitions are intentionally concise and educational.
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This glossary explains terminology specific to publicly traded companies and stock investing. Broad market concepts live in the Markets & Investing Glossary; crossovers, breakouts, divergences, and other triggered conditions live in the Market Signals Glossary.
Accounting, tax, legal, and exchange terminology can vary by jurisdiction and context.
10-K
A comprehensive annual report filed by a U.S. public company describing its business, risks, financial condition, and audited financial statements.
10-Q
A quarterly report filed by a U.S. public company containing unaudited financial statements and updates on operations and risks.
8-K
A current report used by a U.S. public company to disclose significant events between periodic filings.
Accounts payable
Amounts a company owes suppliers and other creditors for goods or services already received.
Accounts receivable
Amounts customers owe a company for goods or services already delivered.
Accredited investor
A person or organization that meets specified financial or professional criteria for participating in certain private securities offerings.
Adjusted earnings
A non-GAAP profit measure that removes items management considers unusual, nonrecurring, or not representative of ongoing operations.
American depositary receipt (ADR)
A U.S.-traded certificate representing shares of a foreign company.
Analyst estimate
A forecast of a company's revenue, earnings, cash flow, price target, or another financial measure.
Annual general meeting
A meeting at which shareholders receive company updates and vote on matters such as directors and auditor appointments.
Annual report
A yearly publication describing a company's business, performance, risks, governance, and financial statements.
Authorized shares
The maximum number of shares a corporation is legally permitted to issue under its governing documents.
Balance sheet
A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific date.
Basic earnings per share
Net income available to common shareholders divided by the weighted-average number of common shares outstanding.
Beneficial owner
A person or entity that ultimately enjoys the economic benefits or voting power of shares, even when another name appears on the record.
Blue-chip stock
A stock issued by a large, established company generally regarded as financially strong and widely followed.
Board of directors
A group elected by shareholders to oversee management and major corporate decisions.
Book value
A company's accounting value, generally calculated as total assets minus total liabilities.
Book value per share
Common shareholders' equity divided by common shares outstanding.
Brokerage account
An account through which an investor can buy, sell, and hold securities.
Buyback
A company's repurchase of its own shares, reducing shares outstanding unless the shares are later reissued.
Capital expenditure
Money spent to acquire, improve, or maintain long-term assets such as property, equipment, or technology.
Capital gain
The increase in value when a stock's sale price exceeds its cost basis.
Capital loss
The decrease in value when a stock's sale price is below its cost basis.
Cash flow from financing
Cash generated or used through debt, equity issuance, dividends, and share repurchases.
Cash flow from investing
Cash used for or generated by long-term investments, acquisitions, and asset purchases or sales.
Cash flow from operations
Cash generated or used by a company's core business activities.
Class A shares
A designated share class with specific voting, dividend, or conversion rights defined by the company.
Common stock
Equity representing residual ownership in a company, usually with voting rights and variable dividends.
Comparable-company analysis
A valuation method that compares a company with similar publicly traded businesses using financial multiples.
Consensus estimate
The average or median forecast from multiple analysts for a company's financial results.
Convertible preferred stock
Preferred shares that may be converted into common shares under specified terms.
Cost basis
The amount used to calculate taxable gain or loss, generally based on purchase cost and applicable adjustments.
Cumulative dividend
A preferred-stock dividend that accumulates if unpaid and must generally be paid before common dividends resume.
Current assets
Assets expected to be converted into cash, sold, or used within one year or an operating cycle.
Current liabilities
Obligations expected to be settled within one year or an operating cycle.
Current ratio
Current assets divided by current liabilities, used as a measure of short-term financial capacity.
Days sales outstanding
An estimate of the average number of days a company takes to collect customer receivables.
Debt-to-equity ratio
A leverage measure comparing total debt with shareholders' equity.
Deferred revenue
Cash received before the related goods or services have been delivered and recognized as revenue.
Delisting
Removal of a company's shares from an exchange, voluntarily or because listing requirements are no longer met.
Depreciation
The accounting allocation of a tangible asset's cost over its estimated useful life.
Diluted earnings per share
Earnings per share calculated as though potentially dilutive securities, such as options or convertible instruments, had become common shares.
Dilution
A reduction in existing shareholders' ownership percentage or per-share claim caused by issuing additional shares.
Direct listing
A process in which existing shares begin public trading without a traditional underwritten initial public offering.
Dividend
A distribution of cash, shares, or other value from a company to eligible shareholders.
Dividend aristocrat
A company included in a defined index or list because it has increased its dividend for many consecutive years.
Dividend payout ratio
Dividends paid divided by earnings, indicating the portion of profit distributed to shareholders.
Dividend reinvestment plan
A program that automatically uses cash dividends to purchase additional shares.
Dividend yield
Annual dividend per share divided by the current share price.
Earnings
A company's profit after accounting for applicable expenses, interest, and taxes.
Earnings call
A scheduled discussion in which management reviews results and answers questions from analysts or investors.
Earnings guidance
Management's forecast or expected range for future revenue, earnings, or other business measures.
Earnings per share (EPS)
The portion of a company's profit attributable to each common share.
Earnings surprise
The difference between reported earnings and the market's consensus estimate.
Earnings yield
Earnings per share divided by share price, the inverse of the price-to-earnings ratio.
EBIT
Earnings before interest and taxes, a measure of operating performance before financing and tax effects.
EBITDA
Earnings before interest, taxes, depreciation, and amortization; a non-GAAP measure often used to compare operating performance.
Economic moat
A durable competitive advantage that may help a company defend market share and profitability.
Enterprise value
A measure of total operating value that generally combines equity value and debt while subtracting cash.
Equity
The residual ownership interest in a company after liabilities are deducted from assets.
Ex-dividend date
The first trading date on which a buyer is generally not entitled to the next declared dividend.
Executive compensation
Salary, bonuses, stock awards, options, and other benefits paid to senior company leaders.
Fair value
An estimate of what a stock or business is reasonably worth based on assumptions, models, or comparable companies.
Fiscal quarter
A three-month reporting period within a company's fiscal year.
Fiscal year
A 12-month accounting period used by a company for financial reporting.
Float
Shares available for public trading after excluding certain closely held or restricted shares.
Forward earnings
Estimated earnings for a future period, commonly the next 12 months or fiscal year.
Forward price-to-earnings ratio
Current share price divided by forecast earnings per share.
Free cash flow
Cash remaining after operating cash flow is reduced by capital expenditures.
Free cash flow margin
Free cash flow divided by revenue, showing how much revenue is converted into discretionary cash.
Free cash flow yield
Free cash flow per share divided by share price, or total free cash flow divided by market capitalization.
Fundamental analysis
Evaluation of a company's business, financial statements, competitive position, management, and valuation.
GAAP
Generally Accepted Accounting Principles, the accounting framework used by U.S. public companies for required financial reporting.
Goodwill
An intangible balance-sheet asset generally created when an acquisition price exceeds the fair value of identifiable net assets.
Gross margin
Gross profit divided by revenue, showing the percentage of sales remaining after direct production costs.
Gross profit
Revenue minus the direct costs of producing goods or services sold.
Growth stock
A stock whose underlying company is expected to expand revenue or earnings faster than peers or the broader market.
Guidance
Management's outlook for future financial or operating performance.
Hostile takeover
An acquisition attempt pursued without the target company's board supporting the transaction.
Holding company
A company whose primary purpose is owning controlling interests or investments in other businesses.
Impairment charge
An accounting expense recognized when an asset's carrying value exceeds its recoverable or fair value.
Income statement
A financial statement showing revenue, expenses, and profit or loss over a period.
Independent director
A board member who meets applicable independence standards and lacks certain material relationships with the company.
Index constituent
A company whose stock is included in a specified market index.
Initial public offering (IPO)
The first sale of a private company's shares to public investors.
Insider
A director, officer, significant shareholder, or other person with access to material nonpublic company information.
Insider buying
Purchases of company shares by directors, officers, or other reportable insiders.
Insider selling
Sales of company shares by directors, officers, or other reportable insiders.
Institutional investor
An organization, such as a pension fund, mutual fund, insurer, or investment manager, that invests substantial amounts of capital.
Intangible assets
Nonphysical assets such as patents, trademarks, software, licenses, and customer relationships.
Inventory
Goods and materials held for production or sale.
Large-cap stock
A stock issued by a company with a relatively large market capitalization; exact thresholds vary by provider.
Liabilities
Financial obligations owed by a company to lenders, suppliers, employees, governments, or others.
Listing
Admission of a company's shares to trading on a securities exchange.
Lock-up period
A period after an IPO or other transaction during which specified shareholders are restricted from selling shares.
Management discussion and analysis
A section of a public filing in which management explains financial results, liquidity, risks, and important trends.
Market capitalization
The market value of a company's outstanding equity, calculated as share price multiplied by shares outstanding.
Mega-cap stock
A stock issued by one of the largest publicly traded companies by market capitalization.
Merger
A transaction combining two companies into one organization or ownership structure.
Mid-cap stock
A stock issued by a medium-sized public company; exact market-cap thresholds vary by provider.
Minority interest
The portion of a subsidiary's equity not owned by the parent company, also called noncontrolling interest.
Moat
A shorthand term for a durable competitive advantage protecting a company's economics from competitors.
Net debt
Total debt minus cash and cash equivalents.
Net income
Profit remaining after all recognized expenses, interest, and taxes.
Net margin
Net income divided by revenue.
Noncontrolling interest
The equity in a consolidated subsidiary attributable to owners other than the parent company.
Non-GAAP measure
A performance measure that differs from required accounting standards and typically adjusts reported results.
Operating cash flow
Cash generated or used by a company's core operations.
Operating expenses
Costs incurred to run the business that are not directly included in cost of goods sold.
Operating income
Profit from core operations after operating expenses but before interest and taxes.
Operating margin
Operating income divided by revenue.
Outstanding shares
The total shares currently held by shareholders, including certain restricted holdings.
Par value
A nominal legal value assigned to a share in a corporation's governing documents; it usually differs from market value.
Penny stock
A low-priced stock, often issued by a very small company and associated with limited liquidity and heightened risk.
Preferred stock
An equity security that generally has priority over common stock for dividends and liquidation proceeds but often has limited voting rights.
Price target
An analyst's estimate of where a stock may trade within a stated period based on assumptions and valuation methods.
Price-to-book ratio (P/B)
Share price divided by book value per share.
Price-to-cash-flow ratio
Market capitalization divided by operating cash flow, or share price divided by cash flow per share.
Price-to-earnings growth ratio (PEG)
The price-to-earnings ratio divided by an expected earnings growth rate.
Price-to-earnings ratio (P/E)
Share price divided by earnings per share.
Price-to-free-cash-flow ratio
Market capitalization divided by free cash flow, or share price divided by free cash flow per share.
Price-to-sales ratio (P/S)
Market capitalization divided by revenue, or share price divided by sales per share.
Profit margin
Profit expressed as a percentage of revenue.
Proxy statement
A filing providing information about matters submitted for shareholder votes, including directors and executive compensation.
Qualified dividend
A dividend that may qualify for preferential U.S. federal tax rates when applicable requirements are met.
Quick ratio
Cash, marketable securities, and receivables divided by current liabilities, used to assess near-term liquidity.
Record date
The date used to determine which shareholders are entitled to a declared dividend or voting right.
Research and development
Spending on activities intended to create or improve products, services, processes, or technology.
Restricted stock
Company shares subject to vesting, transfer, or forfeiture restrictions.
Return on assets (ROA)
Net income divided by average total assets.
Return on equity (ROE)
Net income divided by average shareholders' equity.
Return on invested capital (ROIC)
A measure comparing after-tax operating profit with the capital invested in the business.
Revenue
Income generated from ordinary business activities before expenses are deducted.
Revenue growth
The percentage increase or decrease in revenue compared with a prior period.
Rights offering
An offer allowing existing shareholders to purchase additional shares, often at a specified price and in proportion to current holdings.
Secondary offering
A sale of additional or existing shares after a company is already publicly traded.
Sector
A broad group of companies engaged in similar economic activities.
Share
A unit of ownership in a corporation or fund.
Share class
A category of shares with specific voting, dividend, conversion, or other rights.
Shareholder
A person or entity that owns shares of a company.
Shareholder equity
Assets minus liabilities, representing the accounting interest attributable to shareholders.
Shareholder yield
A measure combining dividends, net share repurchases, and sometimes debt reduction relative to market value.
Shares outstanding
The number of company shares currently held by investors.
Short interest
The number or percentage of shares that have been sold short and not yet covered.
Short interest ratio
Short interest divided by average daily trading volume, often called days to cover.
Small-cap stock
A stock issued by a relatively small public company; exact market-cap thresholds vary by provider.
Special dividend
A one-time dividend paid outside a company's regular dividend schedule.
Spinoff
A transaction in which a company separates a business into an independent publicly traded company and distributes shares to existing shareholders.
Stock
A security representing an ownership interest in a corporation.
Stock-based compensation
Compensation provided through shares, options, or other equity-linked awards.
Stock dividend
A dividend paid in additional shares rather than cash.
Stock option
A contract granting the right to buy or sell shares at a specified price under defined terms.
Stock split
A corporate action that changes the number of shares and per-share price proportionally without directly changing total company value.
Subscription revenue
Revenue generated from recurring customer payments for continuing access to a product or service.
Tangible book value
Shareholders' equity after subtracting goodwill and other intangible assets.
Tender offer
A public offer to purchase shares directly from shareholders at specified terms.
Ticker symbol
A short code used to identify a publicly traded security on an exchange or market data system.
Trailing twelve months (TTM)
The most recent 12 months of financial results, calculated by combining available quarterly periods.
Treasury stock
Shares a company has repurchased and holds rather than retiring or leaving outstanding.
Underwriter
A financial institution that helps structure, market, and distribute securities in an offering.
Unrealized gain or loss
A gain or loss on shares that have not yet been sold.
Valuation
The process of estimating what a company or stock is worth relative to its market price.
Value stock
A stock that appears inexpensive relative to earnings, assets, cash flow, or other valuation measures.
Vesting
The process by which an employee or other recipient earns ownership of stock awards or options over time or after conditions are met.
Voting rights
Rights attached to shares that allow shareholders to vote on directors and specified corporate matters.
Warrant
A security giving its holder the right to purchase company shares at a specified price before expiration.
Weighted-average shares outstanding
The average share count during a reporting period, adjusted for changes in shares over time.
Working capital
Current assets minus current liabilities.
Write-down
An accounting reduction in an asset's carrying value.
Write-off
The removal of an asset's carrying value when it is considered unrecoverable or no longer economically useful.
Yield on cost
Annual dividend income divided by the investor's original cost basis.
Important note: This glossary is provided for educational purposes only. It does not constitute investment, legal, tax, accounting, or financial advice. Company reporting, securities rules, and tax treatment may vary by jurisdiction and may change over time.