For tax purposes, loosely defined as the total of income from employment, self-employment, pensions, and alimony. Losses from rentals and losses incurred in self-employment are deducted from these amounts.

One of the most common acronym’s in corporate financial circles and referring to Earnings Before Interest, Taxes, Depreciation and Amortization. It is a key number when evaluating the value of a company because it indicates how much cash the company is taking in versus what it is paying out.

A company's net earnings less preferred share dividends, divided by the number of common shares outstanding.

Also known as the "earnings yield," this ratio is a corporation's earnings per share divided by its current stock price. It is used to compare the attractiveness of stocks, bonds, and money market instruments.

A financial statement showing the income and expenses of a business over a period of time. Also known as an income statement or profit and loss statement.

Also known as the "earnings price ratio," the earnings yield is a corporation's earnings per share divided by its current stock price. It is used to compare the attractiveness of stocks, bonds, and money market instruments

The assumptions about future economic performance underlying the government's projections of its revenues, expenditures and deficit -- such as assumptions about growth, interest rates and inflation. Economic assumptions help to determine the budget action needed to achieve deficit targets. Overly optimistic assumptions can lead to miss fiscal targets and damaged credibility. Using prudent economic assumptions and taking sufficient fiscal action helps to ensure that deficit targets are met.

Economic statistics that give important clues to changing economic conditions. For example, changes in the Consumer Price Index provide an indication of the rate of price inflation of consumer goods and services while changes in Gross Domestic Product provide an indication of overall growth in output.

The theory that a stock's price reflects all available information and reflects its true value.

A type of growth mutual fund that invests in stocks of young, growing companies.

A plan established by your company that permits you to buy company stock, usually at a discount.

The net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares are often known as equities.

A mutual fund whose portfolio consists primarily of common and preferred shares.

All assets owned by an individual at the time of death. The estate includes all finds, personal effects, interests in business enterprises, titles to property, real estate and chattels, and evidence of ownership, such as stocks, bonds, and mortgages owned and notes receivable.

This term refers to the amount of available plant and equipment not in use. When producers have spare capacity, they tend to reduce prices or minimize price increases in order to boost sales. Thus, the greater the spare capacity, the greater the downward pressure on the inflation rate.

In options trading, the exercise price is the specified price for the investment instrument underlying a call or put. If options are exercised, the underlying securities are traded at this exercise price. This is also known as the strike price.