Page 7 - T.T. FINANTIAL

FINANTIAL TERMS

• CASH FLOW PER SHARE: Earnings after taxes and depreciation, divided by
the number of a firm’s shares.
• CERTIFICATE OF DEPOSIT (CD): An interest-bearning bank receipt for a
specified amount of money (CD’s usually
mature between three months and three
years. The interest rate depends on the

amount of money and length of time of the
deposit.)
• COMMISSION: A broker’s fee is given for assisting in buying or selling securities.
• COMMON STOCK: Shares in a company that represent part ownership of that
company.
• COMPOUNDING: The paying of interest on the accrued interest as well as on
the principal.
• CORPORATION: An association of individuals, under authority of law, whose

powers and liabilities are distinct from those of its individual
members.
• CURRENT ASSETS: Assets that can be converted to cash within a year.

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