Stock Selection Guide
NAIC's primary investment tool for analyzing a company and arriving at expectations for its growth and profitability in the future.
Street Name
Securities held by a broker on behalf of a client and registered in the name of the brokerage firm to make trading easier. Stocks held in street name can be loaned out to speculators selling shares short.
Total Capitalization
The total long-term debt plus all types of equity for a company, which constitutes its capital structure.
Trend Line
A technical chart line that depicts the past movement of a security and is used in an attempt to help predict future price movements.
A stock price perceived to be too low, as indicated by a particular valuation model. For instance, some might consider a particular company's stock price cheap if the company's price-earnings ratio is much lower than the average for its industry. Another method of valuation that might indicate a cheap stock would be if a company's shares are trading for a price below its asset value
Value Investing
An investing style that focuses on the fundamental worth of a company measured by its book value or dividend yield. Compare to growth investing.
Value Line Assessment Survey
A proprietary investment service that provides research on stocks and ranks them for timeliness and safety.
Wall Street
Generic term for securities industry firms that buy, sell and underwrite securities and provide investment advice to institutional and individual investors.
Working Capital
Defined as the difference between current assets and current liabilities, excluding short-term debt. Current assets may or may not include cash and cash equivalents, depending on the company.
The percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.