Glossary

Easily navigate through a range of terms and definitions related to home buying, selling, and investment. This resource is designed to enhance your understanding of the real estate market, making it simpler to navigate your property journey.

Amortization Schedule

A table detailing each periodic payment on a loan (typically a mortgage), as generated by an amortization calculator, breaking down the allocation toward principal and interest.

Assets Under Management (AUM)

The total market value of the investments that a person or entity manages on behalf of clients.

Average Volume

The average number of shares traded in a stock over a specific period, typically used to determine how liquid a stock is.

Cash And Cash Equivalents

Liquid assets that are considered equivalent to cash because they can be quickly converted into a known cash amount.

Cash And Short Term Investments

A liquidity metric that includes cash, cash equivalents, and marketable securities held as short-term investments.

Cash Per Share

A measure of a company’s financial liquidity calculated by dividing its total cash and cash equivalents by the total number of shares outstanding.

Change

The difference in the current price of a stock compared to its previous closing price.

Closing Costs

Expenses over and above the price of the property in a real estate transaction, including taxes, attorney's fees, and transfer fees.

Common Stock

Shares entitling their holders to dividends that fluctuate in amount, and have the last claim on assets and dividends.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, such as oil, gold, or wheat.

Compounding

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Cost And Expenses

The aggregate of costs and expenses associated with normal business operations.

Cost of Revenue

The total cost of manufacturing and delivering a product or service to consumers.

CUSIP

An alphanumeric code that identifies securities, including stocks and bonds in the United States and Canada.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Day High

The highest price at which a stock traded during the course of a trading day.

Day Low

The lowest price at which a stock traded during the course of a trading day.

Debt to Equity Ratio

A measure of a company’s financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Debts

Money owed by one party, the borrower or debtor, to a second party, the lender or creditor.

Deferred Revenue

Money received by a company for goods or services which have not yet been delivered or provided.

Diluted Earnings Per Share

A metric that shows the quality of earnings per share (EPS) if all convertible securities were exercised.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Down Payment

An upfront payment made by the buyer towards the purchase price of a home, typically a percentage of the total price.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

An indicator of a company's financial performance which measures profits before deduction of interest expenses, taxes, depreciation, and amortization.

EBITDA Ratio

A financial ratio that compares a company's Earnings Before Interest, Taxes, Depreciation, and Amortization to its total revenue.

Earnings

The net profits of a company after taxes and expenses have been deducted from total revenue.

Earnings Per Share (EPS)

A company's profit divided by its number of common outstanding shares, indicating the company's profitability.

Earnings Yield

The ratio of Earnings Per Share (EPS) to the stock price, representing the earnings generated by a company per dollar of the stock's price.

Economic Events

Events that have a significant impact on the economy and financial markets, such as central bank meetings, employment reports, or GDP announcements.

Exchange Traded Funds (ETFs)

Investment funds traded on stock exchanges, much like stocks, that hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep trading close to its net asset value, though deviations can occasionally occur.

Enterprise Value to Operating Cash Flow

A valuation metric that compares the total valuation of a company, including debt, to the cash it generates from its operations.

Enterprise Value to Sales

A valuation measure that compares the total value of a company, inclusive of debt and other liabilities, to its total revenues.

Expense Ratio

A measure of what it costs an investment company to operate a mutual fund or ETF, expressed as a percentage of the fund’s average assets.

Expenses

Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

For Sale

The total number of homes actively listed for sale in a region at any given time.

Free Cash Flow Yield

A financial ratio that compares the free cash flow per share a company is expected to earn against its market value per share.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Gross Profit Ratio

A profitability metric that compares the gross profit of a company to its total revenues.

HOA Fee

Monthly or yearly fees that homeowners must pay to a homeowners association for maintenance and improvements of common areas and amenities in a community.

Home Insurance

Insurance policy that covers losses and damages to an individual's house and assets in the home, providing liability coverage against accidents in the home or on the property.

Home Price Index

An economic measure that tracks the changes in the value of residential real estate over time.

Household Income

The total income by all members of a household, typically measured on an annual basis, used to gauge the economic status of a household.

Income

Money received, especially on a regular basis, for work, through investments, or from business activities.

Income Statement

A financial statement that provides a summary of a company's revenues, expenses, and profits/losses over a specific period of time.

Insiders Transactions

The buying or selling of shares of a company by someone who is classified as an insider, such as an executive or board member, which must be reported to regulatory bodies.

Interest Expense

The cost incurred by an entity for borrowed funds, usually calculated as a percentage of the outstanding principal over a period of time.

Inventory

The raw materials, work-in-progress goods, and finished goods that a company has on hand and intends to sell in the course of its business.

Laggards

Stocks that have decreased in price or underperformed compared to other stocks in the market or sector over a given period.

Liabilities

A company's financial debts or obligations that arise during the course of its business operations.

Listing

The placement of a stock on a recognized stock exchange where it can be traded by investors.

Long-Term Debt

Loans and financial obligations lasting over one year, often issued by companies as bonds to raise capital.

Market Cap

The total market value of a company's outstanding shares, calculated by multiplying the current share price by the total number of outstanding shares.

Market Order

An order to buy or sell a stock immediately at the current market price, ensuring the transaction is executed as quickly as possible.

Mortgage Calculator

A tool used to determine the monthly mortgage payment on a home loan based on various factors such as loan amount, interest rate, and loan term.

Mortgage Rate

The interest rate charged on a mortgage loan, typically expressed as an annual percentage of the loan amount.

Net Change

The difference between the closing price of a stock on the previous day and the current closing price.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, reflecting the percentage of revenue that remains as profit after all expenses are accounted for.

Net Revenue

The amount of money a company earns from its business activities after subtracting returns, allowances, and discounts.

New Listings

The total number of new homes listed for sale on the market within a specific period.

Next Earnings Date

The date on which a company is scheduled to release its next earnings report, which provides insight into the company's financial performance over a recent period.

Number of Employees

The total count of individuals employed by a company, often used as an indicator of company size and operational capacity.

Operating Cash Flow

The cash generated by a company’s normal business operations, indicating the firm's ability to generate sufficient positive cash flow to maintain and grow its operations.

Operating Income

A measure of a company's profitability from core business operations, excluding deductions of interest and taxes.

Operating Margin

A profitability ratio calculated as operating income divided by net sales, indicating what proportion of revenue is left after paying for variable costs of production.

Open

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

Option Chain

A listing of all options for a particular security, including call and put options, along with their expiration dates, strike prices, and pricing information.

Other Income

Revenue generated from non-core business activities, such as interest earnings, rental income, or gains from investments.

Outstanding Shares

The total number of shares of a company’s stock that are owned by shareholders, including restricted shares owned by the company’s officers and insiders.

P/E Ratio (Price/Earnings Ratio)

A valuation ratio of a company's current share price compared to its per-share earnings, used to determine the market value of a stock relative to the company's earnings.

Loan Calculator

A tool used to estimate the monthly payments, total interest, and overall cost of a personal loan based on various input factors such as loan amount, interest rate, and loan term.

Pre-Market

The period of trading activity that occurs before the regular market session, allowing investors to react to news and events before official trading hours.

Price Change

The difference between the last traded price of a stock and the price at the end of the previous trading day, indicating a stock's daily performance.

Price Range

The spread between the lowest and highest prices at which a stock has traded during a specified period.

Price to Cash Flow Ratio

A valuation ratio that measures the market value of a company relative to its operating cash flow, indicating how much investors are willing to pay per dollar of cash flow.

Price to Sales Ratio

A valuation ratio that compares a company’s stock price to its revenues, reflecting how much investors are willing to pay per dollar of sales.

Profit Margin

A financial metric that represents the percentage of revenue that exceeds a company’s costs and expenses.

Rate

The percentage of interest or dividend paid on a loan, deposit, or investment over a specific period.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, such as crops, minerals, or water.

Revenue

The total amount of money generated by the sale of goods or services related to the company’s primary operations.

Revenue Per Employee

A measure of how efficiently a company is using its employees to generate revenue, calculated by dividing total revenue by the number of employees.

Sectors

Categories of stocks that represent different segments of the economy, such as technology, healthcare, finance, and energy.

Securities

Financial instruments that represent an ownership position in a company (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership (option).

Shares Outstanding

The total number of a company’s shares that are currently held by all its shareholders, including restricted shares and excluding treasury shares.

Short Interest

The total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out.

Short-Term Debt

Financial obligations that are due within one year, such as short-term loans or accounts payable.

Split

An action taken by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.

Stock Buyback

The repurchasing of shares of stock by the company that issued them, often intended to increase the value of remaining shares by reducing the supply of available shares.

Stock Market

A marketplace where securities, such as stocks and bonds, are bought and sold.

Stock Price

The current price at which a particular stock can be bought or sold on the market.

Stock Split

An action taken by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, effectively reducing the stock price while increasing the number of shares outstanding.

Symbol

A unique series of letters assigned to a security or stock for trading purposes, typically representing the company name or abbreviation.

Total Cash

The sum of all cash, cash equivalents, and liquid assets held by a company at a given time.

Total Debt

The sum of all short-term and long-term debt a company holds, including bonds, loans, and other financial obligations.

Total Revenue

The total income generated by a company from its sales of goods or services before any expenses are deducted.

Trailing Twelve Months (TTM)

A measurement of a company's financial performance over the past 12 months, updated at the end of each month or quarter.

Turnover

The total sales or revenue generated by a business during a specific period, often used interchangeably with total revenue.

Valuation

The process of determining the current worth of an asset, company, or investment based on various factors such as earnings, market value, and financial performance.

Volume

The total number of shares of a security traded during a specific period, reflecting the activity or liquidity of that security.

Year to Date (YTD)

A period starting from the beginning of the current year and continuing up to the present day, often used for comparing current performance to the same period in previous years.