Page 10 - T.T. FINANTIAL

FINANTIAL TERMS

• DISCOUNT BROKER: A stockbroker who charges a smaller commission than
other brokers, but provides no counsel in investment.
• DIVERSIFICATION: The process of buying securities in different investment
types, industry types, risk levels, and companies in order

to reduce the loss from a possible company-local or in
dustry- local loss of business (diversification is ilustred by a
famous saying, «Don’t put all your eggs in one basket.»)
• DIVIDENT PAYOUT RATIO: The ratio found by dividing the annual dividends
per share by the annual earnings per share.
• DIVIDEND YIELD: The yield found by dividing the annual dividends per share
by the price per share (This yield is an indication of the
in come from a share of stock. Since return on a stock is
comprised of capital gain plus dividends, the total return is
comprised of dividend yield plus the capital gains
percentage for stock.)

• DIVIDEND: A sum of money, determined by a company’s directors, paid to
shareholders of a corporation out of earnings.

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