Financial Information (Definitions and Information)

Question 1

Beta

Answer 1

a measure of a stocks volatility in relation to the overall market.

If a stock moves less than the market, its beta is less than 1.0.

High-betas are riskier but have higher return potential.

Low betas have less risk but lower returns.

Question 2

Market Capitalization

Answer 2

the total value of all a company’s shares to stock.

Price of stock x number of outstanding shares

The investment community uses this figure to determine a company’s size.

Question 3

Next Earnings Date

Answer 3

the date of the next release of a company’s financial report.

Question 4

Average volume

Answer 4

the daily average of the cumulative trading volume for the last 10 days on which there was volume traded for the stock.

Question 5

Previous Close

Answer 5

A security’s closing price on the preceding time period of the one being referenced.

Question 6

Opening Price

Answer 6

The opening price is the price at which a security first trades upon the opening of an exchange on a trading day.

Overnight can change investor valuations or expectations for the security.

Question 7

Ex-Dividend Date

Answer 7

Describes a stock that is trading without the value of the next dividend payment.

Question 8

Dividend Payable Date

Answer 8

The date that any declared stock dividends are due to be paid out.

Question 9

Leverage

Answer 9

An investment strategy of using borrowed money - specifically, the use of various financial instruments or borrowed capital - to increase the potential return of an investment.