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Definition: A ratio of how many stocks went up on a particular day to how many went down that day.

Definition: The amount of money that investors purchasing new shares from a company pay in excess of the par value of those shares.

Definition: A description for mutual funds that are managed by financial professionals who use their education, knowledge, and experience to choose investments they believe will do better than the stock market overall.

Definition: The purchase of one company by another. The acquiring company accomplishes this by buying the outstanding shares of the company it wants to own.

Definition: How many times over a company’s Cash and Accounts Receivable are able to pay the company’s Current Liabilities. The formula: (Cash + Accounts Receivable) / Current Liabilities.

Definition: The income a company records under accrual accounting to recognize that the interest on money it has lent out has built up but not yet been received.

Definition: The expense a company records under accrual accounting to recognize that the interest on money it has borrowed has built up but not yet been paid.

Definition: The amount of interest that is built up between periodic (ie: regularly scheduled) bond interest payments. The seller of a bond wants to be paid this interest when he or she sells a bond any time between interest payments.

Discussed under: Accrual accounting.

Definition: A method of accounting for a business’ activities that recognizes revenue when it is earned (and not when cash is received) and expenses when they are incurred (and not when they are actually paid).