Performance Stock: High-growth stock in a company that retains earnings for further growth and therefore pays no dividends, but that an investor feels has significant future potential.

 

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Performance Stock: High-growth stock in a company that retains earnings for further growth and therefore pays no dividends, but that an investor feels has significant future potential.

Performance Fund: A growth-oriented mutual fund investing in growth stock and performance stock with low dividends and high risk.

Shadow Stock: First, a public company may create a stock that strips out the market wide movements for the purpose of rewarding managers. That is, the management might have done a great job - but the trad . . . View Full Definition

Risk-Adjusted Performance: When you evaluate an investment's risk-adjusted performance, you aren't looking simply at its straight performance figures but at those figures in relation to how much risk you'd be taking t . . . View Full Definition

Screen Stocks: To analyze various stocks in search of stocks that meet predetermined criteria. For example, a simple value screen would sort all stocks by their price-to-book ratio and pick the stocks with . . . View Full Definition

Second-Preferred Stock: Preferred stock issue that has less priority in claiming dividends and assets in liquidation than another issue of preferred stock.

Reverse Stock Split: If a company's stock is trading at a low price, the company may decide to reduce the number of existing shares and increase their price by consolidating the shares. For example, a 1-for-2 re . . . View Full Definition

Secondary Stocks: Stocks with smaller market capitalization, less quality and more risk than blue chip issues that behave differently than larger corporations' stocks.

Return On Stockholders Equity: A measure of overall performance from a stockholder's viewpoint: includes management of operations, uses of assets, and management of debt and equity, and is computed by dividing net income . . . View Full Definition

Qualifying Stock Option: A benefit granted by a corporation that allows employees to purchase shares at a discount price.