Financial glossary

P/E ratio

Stock price relative to earnings per share.

Analyst consensus

Average rating across the analysts that cover the stock.

EPS

Earnings per share.

Dividend yield

Annual dividend as a percentage of share price.

Free cash flow

Cash generated net of capital investment.

ROE

Return on shareholders' equity.

Payout ratio

Share of earnings paid out as dividends.

Market cap

Total market value of the company.

52-week range

Highest and lowest price over the last year.

Earnings report

Quarterly statement of corporate results.

ETF

Exchange-traded fund tracking a basket of assets.

Average cost price

Average per-share cost of your purchases.

Volume

Number of shares traded in a period.

Sector vs industry

Macro vs granular categorization of a company.

Volatility

How much the price oscillates over time.

Beta

Sensitivity of the stock to a reference market.

Drawdown

Maximum loss from a previous peak.

Debt-to-equity

Ratio of total debt to shareholders' equity.

Diversification

Spreading risk across different positions.

Momentum

Persistence of the recent price trend.

Bullish / Bearish

Bullish = expecting up, bearish = expecting down.

Support / Resistance

Price levels that historically halt moves.

Moving average

Average price over a rolling period.

Loss aversion

Feeling losses more strongly than gains.

Anchoring

Anchoring to a reference price (e.g. your cost basis).