Page 4 - T.T. FINANTIAL

FINANTIAL TERMS

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• BALANCE SHEET: A firm’s financial statement that provides a picture of its
assets, debts, and net worth at a specific time.
• BANKRUPTCY: A term that describes the legal process governed by the U.S.
bankruptcy code for companies unable to meet financial
obligations.
• BETA: The indicator used by Value Line to measure a stock’s risk relative to
the market, in this case the NYSE Index. The market’s beta is always
1.0 (Based on past statistical records, a beta higher than 1.0 indicates
that when the market roses, the stock will rise to a greater extent than
that of the market; likewise, when the market falls, the stock will fall to
a greater extent. A beta lower than 1.0 indicates that the stock will

usually change to a lesser extent than that of the market. The higher the
beta, the greater the investment risk.)

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