Financial Terms

What Is EBITDA? The acronym stands for earnings before interest, taxes, depreciation, and amortization (EBITDA). It’s a measure of a company’s operating performance. The calculation is an...

What is Earnings Per shareEarnings per Share (EPS) is the ratio of a company’s net profit to the number of its outstanding shares. The calculation is used to determine company strength relative...

What Is Long Position?A long position, sometimes referred to colloquially as ‘going long,’ occurs when an investor buys an asset holds on to it for a period of time and sells it later. In...

What Is Short PositionA short position, sometimes simply called a short, is a strategy used by some investors if they anticipate lower prices. It’s considered bearish. An investor who takes a...

What Is Return on Equity? Return on Equity (ROE) is a ratio expressed as a percentage. It measures the profitability of a business relative to shareholder’s equity. ROE is used to determine how...

What are Basis Points (BPS) A basis point (bps), sometimes written as 1 bps, is 1/100th of a percentage point, or 0.01%, or 0.0001. It can also be labeled a “pip” or a “bip” or...

What is Bitcoin? Bitcoin is a cryptocurrency used as a medium of exchange and storage of value. Bitcoin was inspired by earlier cryptocurrencies like Hashcash and b-money, which were invented as early...

What Is Price-to-Earnings Ratio? The price to earnings ratio (P/E) is used to value a company by comparing its earnings per share to its stock price. Juxtaposing the current P/E to past P/Es, and P/Es...

What Does Monetary Policy Refer To?Monetary policy is the use of economic tools by a country’s central bank or other government agency, to control critical economic factors such as money supply,...