Cost of Sales
These are all the direct costs incurred by the company in the process of production or purchasing the goods or services that the company sells. These expenses may include, for example, production costs, marketing, employee salaries, and others.
Trading Cost (Commission)
This is the cost (commission) incurred by market participants when buy and sell orders are executed.
Securities Ratings
Rating processes conducted for the credit risk and investment risk of securities issued for the first time, by specialized commercial agencies
Stock Undervaluation
A stock is undervalued when it trades at a price lower than its true value as suggested by standard valuation fundamentals such as the company’s strong earnings or reputation. This may sometimes occur when traders turn away from a company’s stock for one reason or a combination of reasons.
Overvaluing a stock
A stock price is considered overvalued if it exceeds its fair value. One of the criteria used to gauge the degree of overvaluation is the stock’s price-to-earnings ratio (E/P). When this ratio is clearly higher than its average for the overall market, other markets, or the sector in which the company operates, the stock is […]
Asset Valuation
Asset valuation is the process of estimating an asset, investment, or security. This process utilizes fundamental data for the asset or investment being valued, such as: the asset’s future cash flows, prevailing discount rates, and any data affecting the cash flows from the asset being valued.
Research Report
A document prepared by a financial analyst as part of an investment research team at brokerage firms or investment banks. A research report typically focuses on a stock or a group of stocks within a particular sector or industry, or on a currency, a commodity, or a fixed-income instrument.
Forward Settlement
It is a transaction that is settled later than the regular settlement dates for a specific commodity or instrument.
Price correction
A term describing a sustained short-term decline in the securities market that occurs after a period of significant increases in stock prices.
Company Liquidation
It is the process by which a company’s existence is terminated and it is liquidated. This involves: selling assets, settling liabilities and paying preferred shareholders, and then distributing any remaining balance from the assets to common shareholders.