Stock Investing,
Start with the Basics

P/E, P/B, ROE... Sound confusing?
Learn essential stock market terms in plain English.

Browse Glossary

39+

Stock Terms

Popular Terms

Most searched stock market terms

P/E Ratio

Price to Earnings Ratio

Stock Price ÷ Earnings Per Share = How many years of earnings equal the price

P/B Ratio

Price to Book Ratio

Stock Price ÷ Book Value Per Share = How many times book value

EPS

Earnings Per Share

Net Income ÷ Shares Outstanding = Profit per share

ROE

Return on Equity

Net Income ÷ Shareholders' Equity × 100 = Return on invested capital

Dividend

Cash Distribution

A portion of company profits paid to shareholders

Dividend Yield

Annual Dividend / Stock Price

Annual Dividend Per Share ÷ Stock Price × 100 = Income return

ETF

Exchange Traded Fund

A fund that trades like a stock and tracks an index or sector

Short Selling

Shorting

Borrowing shares to sell now and buy back later at a lower price

View all 39 terms →

Browse by Category

Basic Concepts

3 terms

Valuation Metrics

6 terms

Trading

9 terms

Dividends

5 terms

Analysis

5 terms

Market & Structure

11 terms

Free Calculators

Useful tools for your investment decisions

P/E Ratio Calculator

Is this stock overpriced? Find out in seconds.

Dividend Yield Calculator

How much income will you get from dividends?

Compound Growth Calculator

See how your money grows over 10, 20, 30 years.

Position Size Calculator

How many shares should you buy? Don't guess.

Try all calculators →

Learn to Invest

No-fluff guides for beginners

Basics•8 min

Master the Language of Investing

Look up terms whenever you need them.
Continuously updated with new content.

Start Learning

Stock Investing,Start with the Basics