When I was reading about investment banks, I came across the terms buy side and sell side. But what do the terms buy side and sell side mean? Buy side and sell side is a way of classifying investment banks based on the type of clients they represent, and the services they provide to those …
What is PEG ratio? PEG ratio is price-to-earnings to growth ratio. It is a stock’s PE ratio divided by the growth rate of its earnings. For example, if a stock has a PE of 12, and its growth rate is 20%, the PEG ratio is 12/20 or 0.6. Why do we need PEG ratio when …
When we talked about PE ratio, you told me that it can be used to judge whether a stock is over-priced or under-priced. So Does a low PE mean that a stock is under-priced, and a high PE mean that the stock is over-priced? Not really. Just knowing a stock’s PE ratio doesn’t help much. …
Quiz: Loans and Borrowing Basics Borrowing can be a useful tool or a costly trap. Test your grasp of debt, APR, and smart borrowing. What is a Home Equity Loan? It is a loan where you borrow money using your home equity as collateral. It is also known as a second mortgage. How does a …
What is Home Equity? Home equity is based on the fact that even if your home is in your name, you don’t really own 100% of it if you have borrowed money to buy it and are still repaying the mortgage. Home equity is the portion of your home that you truly own. Can you …
I recently read about an Electronic Communication Network. But what is it anyway? An electronic communication network, or ECN, is a computerized system used for buying and selling securities, and is an alternative to stock exchanges. It is where buy and sell orders from different market participants are directly matched, eliminating middlemen like brokers. What …
I’ve heard people talk about bull markets and bear markets. But what do bull markets and bear markets even mean? A bull market is when the stock prices keep going up for a long time, and a bear market is when the stock prices keep going down for a long time. Even though the terms …
I heard about topline and bottomline on TV. But what do Topline and Bottomline mean? Topline is the Revenue or the gross sales of the company. Bottomline is the net profit of the company, which is calculated by adding other income to, and subtracting various expenses from the top line. The other income can be …
I keep hearing about PE on TV. But what is PE? PE is a comparison between a company’s stock price and its earning per share. It is also known as PE Ratio, price multiple or earnings multiple. How is PE calculated? It’s calculated by dividing the current stock price of a company by the EPS …
Introduction to a Stock Index for Kids and Teens This video explains the concept of stock indices in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about stock indexes, or used as a money & personal finance resource by parents and teachers as part of …
