Glossary
Financial terms, plainly explained
Plain-English definitions of the financial metrics, ratios, and concepts you'll meet across Quant Auras.
Bear Market
A sustained decline of 20% or more from a recent peak.
Beta (β)
How much a stock moves relative to the broader market.
Current Ratio
Short-term assets divided by short-term liabilities.
Debt-to-Equity (D/E) Ratio
Total liabilities divided by shareholder equity.
Dividend Yield
Annual dividend per share divided by current share price.
Earnings Per Share (EPS)
Net income allocated to each outstanding common share.
EV / EBITDA
Enterprise value divided by earnings before interest, tax, depreciation, and amortisation.
Exchange-Traded Fund (ETF)
A basket of securities that trades on an exchange like a single stock.
Free Cash Flow (FCF)
Cash from operations minus capital expenditures.
Limit Order
An instruction to buy or sell only at a specified price or better.
Market Capitalisation
Total dollar value of a company's outstanding shares.
Market Order
An instruction to buy or sell immediately at the best available price.
Price-to-Earnings (P/E) Ratio
How much investors pay per dollar of company earnings.
Return on Assets (ROA)
Net income as a percentage of total assets.
Return on Equity (ROE)
Net income as a percentage of shareholder equity.