Investing Terminology

When I first got into investing it took me a long time to get to grips with all the investing terminology that gets used- Ok I was 12 years old when I first started getting into investing, but I thought I might as well dedicate a small section of my site to clarifying some terms that are commonly used and some techniques that are particularly useful to the value investor.

PE Ratio- This is one of the most common valuation ratios, a great way of getting a rough guide to how expensive a company’s shares are.

EPS- Eps stands for Earnings per share, but there is a lot more to understanding EPS than most people initially assume.

Net Asset Value- knowing how to value a company in relation to its assets is also really useful to a value investor.

Dividend Yield- Dividends are a really important part of investment returns, and are foten overlooked, but over the long term a dividend reinvestment strategy can really pay er… dividends (apologies for the shockingly constructed pun)