What is a Balanced Investment Portfolio?

An investment portfolio is a collection of investments owned by an individual or entity. In a portfolio, all investments are managed collectively.

What is a Profit and Loss Statement (P&L)?

A profit and loss statement (P/L) is a financial statement summarizing revenues, costs and expenses incurred during a given period, such as the fiscal year.

What is Price-to-Sales (P/S) Ratio?

The price-to-sales ratio (P/S) is one of the most commonly used ratio between the price of a company’s share and its sales per share.

What is Price-to-Book (P/B) Ratio?

The price-to-book ratio (P/B) is a commonly used ratio between the price of a company’s share and its book value per share.

What is Present Value (PV)?

Present value is the current value of a future sum of money. This is somehing all investors must take into consideration each day.

What is Net Margin?

Net margin is the percentage of revenue after operating expenses, preferred stock dividends, interest and tax are subtracted from the total revenue.

What are Overhead Costs?

Overhead costs are an indirect expense related to the whole company or operation that doesn’t directly contribute to the end-product or service.

What are OTC Stocks?

OTC stocks are composed of small companies that don’t qualify to be listed on major exchanges such as the NYSE or Nasdaq.