Penny stock

A penny stock is a stock that trades for less than $5 per share. Penny stocks are often traded over-the-counter (OTC), meaning they are not listed on a major stock…

Over-the-counter (OTC) market

An over-the-counter (OTC) market is a decentralized marketplace for trading securities and other financial instruments. It is not a physical location, but rather a network of dealers and brokers who…

Market capitalization

Market capitalization, also known as market cap, is the total value of all outstanding shares of a company. It is calculated by multiplying the current share price by the number…

Index

An index is a statistical measure of change in a securities market or a particular segment of the market. It is a way of measuring the performance of a group…

Exchange

An exchange, also known as a stock exchange, is a marketplace where stocks and other securities are bought and sold. Exchanges provide a centralized platform for buyers and sellers to…

Earnings per share (EPS)

Earnings per share (EPS) is a company's net income (profit) divided by the number of outstanding shares of common stock. EPS is a valuable measure of a company's profitability because…

Dividend

A dividend is a distribution of a portion of a company's earnings to a class of its shareholders. When a company earns a profit or surplus, it is able to…

Common stock

Common stock is a type of security that represents ownership in a corporation. It is the most basic form of equity, and it gives shareholders a number of rights, including:…

Call option

A call option is a contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an underlying asset at a specified price on…

Bull market

A bull market is a market condition in which stock prices are rising. It is typically defined as a rise of 20% or more in a stock market index over…