A way to invest in many stocks without needing a large amount of money to buy into each one. The present value of expected future cash flows minus the costs incurred. Another name for mutual fund. This ratio is helpful in determining the true value of a stock by analyzing whether the earnings are high enough to warrant a high share price, or vice versa. Portfolio A group of stocks owned either in a personal account or in a mutual fund.
Portfolios can consist of one to infinite amount of stocks.
Preferred Stock Owners of this type of stock are entitled to earnings first in the event of a company liquidation. Often pays a fixed dividend, again paid before common shareholders are paid. Ownership does not grant company voting rights. The amount of cash today that is equivalent to a payment, or continuous stream of payments, to be received in the future. Helpful in determining the best investment strategy.