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Definition: The accounting rule that requires the recording of sales and the expenses that allowed those sales to happen in the same accounting period.

Definition: The total amount of money it would take to purchase all of the outstanding shares of a corporation. It can be computed by multiplying the total number of shares outstanding by the current price per share.

Definition: The profit you make when you sell an investment you’ve owned longer than a year for more than you paid for it. The income tax rate the U.S. government applies to this profit is less than the normal rate. Therefore, the government is giving investors an incentive to hold their investments at least one

Definition: The ability to sell something you own (ie: an Asset) quickly and without having to drop the price below its fair value to get it sold.

Definition: The steps a company takes to go out of business, including selling of the company’s assets, paying off those that are owed money by the company, and paying the shareholders any money that may be left over.

Definition: An offer to sell one or more shares of a company’s stock but only for a certain minimum price.

Definition: An offer to buy one or more shares of a company’s stock but only for a certain maximum price.

Definition: Money that is owed by a person, business or government usually because goods have been acquired or services have been consumed without being paid for. The suppliers of these goods and services send bills for the amounts of the purchases. The bills represents a liability, money that is owed.

Definition: The department of the government that is responsible for collecting taxes on income that people receive and on profits that corporations earn.

Definition: What a lender charges someone who borrows its money for one year, expressed as a percentage of the amount borrowed.