Financial Glossary
Quick definitions for the metrics and concepts you see in StockLrn.
Goodwill
An intangible asset representing the premium paid over fair market value in an acquisition.
Depreciation
The allocation of a tangible asset's cost over its useful life.
Amortization
The gradual write-off of an intangible asset's cost or a loan principal over time.
Working Capital
The difference between current assets and current liabilities, measuring short-term liquidity.
Current Ratio
A liquidity ratio comparing current assets to current liabilities.
Return on Equity
A profitability metric measuring net income as a percentage of shareholders' equity.
Company Overview
High-level context about what the company does and how it makes money.
Revenue by Segment
Breakdown of revenue across products, geographies, or business lines.
Call Option
A contract giving the holder the right to buy an asset at a specified price before expiration.
Put Option
A contract giving the holder the right to sell an asset at a specified price before expiration.
Strike Price
The predetermined price at which an option holder can buy or sell the underlying asset.
Options Premium
The price paid by the buyer to the seller for an options contract.
Implied Volatility
The market's forecast of the likely magnitude of a stock's price movement, reflected in option prices.
Options Greeks
Metrics (Delta, Gamma, Theta, Vega, Rho) that measure different risk dimensions of an options position.
Yield Curve
A graph showing interest rates across different bond maturities.
Financial Statements
Core reports that show profitability, balance sheet strength, and cash generation over time.
Income Statement
A report of revenue, expenses, and profit over a period (quarter or year).
Balance Sheet
A snapshot of assets, liabilities, and equity at a point in time.
Cash Flow Statement
Tracks cash generated and used by operations, investing, and financing.
Revenue
The total sales a company earns during a period.
Net Income
Profit after all expenses, interest, and taxes.
EBITDA
Earnings before interest, taxes, depreciation, and amortization (a rough cash-earnings proxy).
EPS (Earnings Per Share)
Net income divided by shares outstanding; profit per share.
Net Profit Margin
Net income divided by revenue, shown as a percent.
Free Cash Flow (FCF)
Cash from operations minus capital expenditures; cash that can be used for buybacks, dividends, or debt.
Bond Yield
The return an investor earns on a bond, expressed as an annual percentage.
Coupon Rate
The annual interest rate paid by a bond issuer on the bond's face value.
Duration
A measure of a bond's sensitivity to interest rate changes, expressed in years.
Credit Rating
An assessment of the creditworthiness of a bond issuer, assigned by rating agencies.
Municipal Bonds
Debt securities issued by state and local governments, often offering tax-exempt interest income.
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