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Jargon Buster

A B C D E F G H I K L M N O P R S T V Y Z
Portfolio

Portfolio means the combination of all the investments in terms of stocks, debentures, money market instruments etc held by an investor/institution for the purpose of generating returns.

Preferred Stock

Preferred stock holders are given preference over common stock holders. They are paid higher and regular dividends than the common stock holders. At the time of liquidation, they are considered above of common stock holders to claim the assets.

Premium

Premium is the amount which is paid by the investor over and above of the face value of the share.

Price-To-Earnings Ratio (P/E)

P/E ratio is the market price of share to earnings per share. It tells what market is willing to pay for every Re 1 of earnings.

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