The Top Ten Financial Definitions
1. Stock Split: Think of pizza slices as a 2 for 1 stock split--you get twice as many pieces of the same pie and so you feel richer.
2. Market Correction: What the markets do the day after you buy stocks.
3. P/E Ratio: Better known as the panic/exit ratio. Fund managers use this number to calculate the time for all the unit holders to bail out of the fund.
4. Momentum Investing: The art of buying high and selling lower.
5. Value Investing: The art of buying lower and selling lower.
6. Cash Flow: The movement of money from a mutual fund to the fund manager. Sometimes called management fees, or management expense ratios(MERs).
7. Day Trader: The opportunity to lose large amounts of money over short time periods.
8. Stock: A magical piece of paper that is worth more when the economy is good and then worth less when the economy is really good.
9. Trailer Fees: The money you pay to your financial planner to buy and never sell.
10. Financial Advice: For every adviser, there exists an equal and opposite adviser.
Posted by qualteam
at 9:46 PM EST
Updated: Monday, 2 February 2004 12:09 AM EST