Financial Literacy

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.

When tracking down trending stocks to buy, here are a few useful strategies. Whether you’re trading or investing, this can help.

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

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

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

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

Net income is the total revenue earned in a period (e.g., fiscal year) after all expenses incurred during the same period are deducted.

Operating expense is a cost that is ongoing and associated with the cost of running and maintaining a business or organization.