Balance sheet
The Balance Sheet is a financial statement summarizing the assets and liabilities of a company. It shows the company’s financial position at a specific date. 

Book value
The book value of an asset is the value of that asset on the “books” (balance sheet) of the company. The book value is calculated as the purchase price of the depreciable asset minus accumulated depreciation on that asset. The book value is not necessarily the same as the fair market value (the amount the asset could be sold for on the open market).

Book value per share
Book value per share is worth of each share of stock as per the books. Total shareholders’ equity divided by total common shares outstanding. It is the accounting value of a share of common stock.

Capital gain
The capital gain is an increase in the value of a capital asset such as common stock. The capital gain is because of appreciation of assets. Here the proceeds exceed the cost. A capital gain may be short-term (one year or less) or long-term (more than one year).

Commercial paper
Commercial paper is a negotiable short term debt instrument with a fixed maturity of 1 to 270 days. When a company needs to borrow a large sum of money for a short period of time, it may issue commercial paper to raise debt.

Current assets
Current assets are liquid assets such as cash, marketable securities, accounts receivables, inventories prepaid expenses and other cash equivalents that can be converted into cash within one year in the normal course of business.

Current liabilities
Current liabilities are short term debts and liabilities that are payable within one year, such as bank overdraft, accounts payable, short-term notes, and other creditors. 

Current ratio
The current ratio is of a firm’s current assets to its current liabilities. It measures whether a firm has enough liquid resources to pay its current. It is also known as liquidity ratio.

Debenture
Debentures are a long-term Debt Instrument issued by governments and corporations to raise funds. Sometimes they are called Bonds.

Debt-to-equity ratio
Debt-to-equity ratio is ratio of long-term debt and common shareholders’ equity. It is a measure of financial leverage of a company.

 Deep discount bond
Deep discount bond is a bond issued at a price lower than its face value but redeemable   at the face value repaid at the time of maturity. It does not make periodic interest payments

Earnings per share (EPS)
EPS is the company’s earnings divided by the number of ordinary shares. It shows how much each share earns over a period of 12 months.

Price-earnings ratio (P/E ratio)
P/E ratio is the ratio of the market price of an ordinary share to its earnings per share. It is a commonly used by investors to measure how “expensive” or “attractive” a share is.

Face value
Face Value of a security is the amount as stated by the issuer and printed on it. Face value is also known as the nominal or stated amount of security.

Fundamental analysis
Fundamental analysis is an analysis of a company’s stock based on fundamental factors, such as company earnings, growth prospects, supply and demand, and external environment. This is used to determining valuation of stocks and their potential for growth.

Gross domestic product (GDP)
Gross domestic product is the total market values of goods and services produced by within a nation’s borders during a year. It does not include products made by its individuals or companies in foreign markets.  It is a widely used measure of an economy.

 Gross profit margin
Gross profit margin is the net sales minus the cost of goods or services sold. It is expressed in percentage by dividing Gross profit by sales.

Income statement
An Income Statement is the financial statement of a firm summarizes both income and expenses for a specific period.

 Index
An index is a statistical measure of the changes over a period such as price index, market performance indexes.

Index fund
A mutual fund that matches its portfolio to that of a particular market index, with the objective to track the index.

Intangible asset
Non-monetary asset that cannot be seen, touched or physically measured, such as goodwill, a patent or a trademark.

Net asset value
The market value of the fund’s total assets less its liabilities divided by number of shares outstanding.

Net income
Total revenue less all expenses during an accounting period.

Net profit margin
Net profit divided by total revenues, usually expressed as a percentage.

Operating profit
The difference between operating revenues and operating expenses in a firm’s normal business operations during a specified period.

Operating profit margin
Operating profit divided by operating revenues during a specified period. 

Present value
The current value of one or stream of future cash payments, discounted at some appropriate interest rate.

Price-earnings ratio (P/E ratio)
P/E ratio is the ratio of the market price of an ordinary share to its earnings per share. It is a commonly used by investors to measure how “expensive” or “attractive” a share is.

Price-earnings relative
A comparative measure of the company’s price-earnings ratio in relation to the price-earnings ratio of the overall or broad market index such as the S&P 500 index

Price-to-book ratio
A ratio of the market value of share to the book value of share. It measures how market values the company as compared to its net worth.

Profit margin
The ratio of gross profits and sales is called gross profit margin and is usually expressed as percentage. Similarly, the ratio of net profits and sales is called net profit margin. It measures profitability of a firm.

Quick ratio
The quick ratio is of a firm’s such liquid assets which can be easily converted into cash and its current liabilities. It measures whether a firm has liquid resources to pay its current liabilities.

Return on assets
A ratio of net income that a company earns in relation to its overall resources. It is a measure of efficient use of assets.

Return on equity (ROE)
The amount of net income earned as a percentage of shareholders equity. A measure of how efficiently a company uses reinvested earnings to generate additional earnings.

 Return on investment (ROI)
Return on investment is the percentage return made by investment in a project or securities.

 Revenue
The gross amount of income by sales of goods or services before any deductions for expenses are made

 Short-term debt
Debt with a short maturity, usually payable within 12 months, and includes that instalments of long-term debt likely to be due within the next year.

Technical analysis
Technical analysis is a security analysis based on study of charts and graphs of trading patterns and prices to forecast the future movement of prices through the study of past market data.

Total assets                
Total assets are the sum of current and long-term assets including tangible owned by company.

Total capital
Total capital is total long-term fund employed in a company by way of equity and long-term debt.         

 Total debt to total assets
A ratio of Short-term and long-term debt to total current assets and long term assets of the firm. It indicates what proportion of the assets of the firm financed through debt.   

Total liabilities
Total liabilities are the sum of total current and long-term liabilities and is shown in the Balance Sheet.

Working capital
Liquid assets or Cash available for day to day operations of a firm. It is measured by current assets minus current liabilities.

Yield
The annual rate of return earned on an investment at current market price, expressed as a percentage.