Question 1

What is P/E Ratio?

Accepted Answer

Price-to-Earnings Ratio is a stock's current price divided by its earnings per share. A P/E of 20 means investors pay 20 times the company's annual earnings.

Question 2

What is Market Cap?

Accepted Answer

Market Capitalization is the total market value of a company's outstanding shares. Calculated as share price multiplied by total shares outstanding.

Question 3

What is EPS?

Accepted Answer

Earnings Per Share is a company's net profit divided by the number of outstanding shares. Higher EPS generally indicates greater profitability.

Question 4

What is RSI?

Accepted Answer

Relative Strength Index is a momentum indicator measuring the speed and magnitude of price changes. RSI above 70 is overbought, below 30 is oversold.

Question 5

What is MACD?

Accepted Answer

Moving Average Convergence Divergence is a trend-following momentum indicator showing the relationship between two exponential moving averages of a stock's price.

Stock Market Glossary