Investing glossary
Plain-English definitions for the terms you will see in annual reports and investing conversations.
- Balance sheet
- A snapshot of what a company owns, owes and the shareholders’ interest at a point in time.
- Earnings per share (EPS)
- Profit attributable to each outstanding share.
- P/E ratio
- The share price divided by earnings per share; a common, imperfect valuation shorthand.
- Return on equity (ROE)
- A measure of profit generated from shareholders’ capital.