Investment Management Test #1

Key concepts

7 cards   |   Total Attempts: 182
  

Cards In This Set

Front Back
Trailing P/E Ratio
Current Share Price / Trailing 12 Mo EPS
Forward P/E Ratio
Market Price Per Share / Expected EPS
What does a high P/E ratio mean?
Investors are paying more for today's earnings in anticipation of future earnings growth
What does a low P/E ratio mean?
A value stock
What is an index fund?
A type of mutual fund with a portfolio constructed to match the components of a market index; passive investing
What is a mutual fund?
An investment vehicle made up of a pool of collected funds for the purpose of investing in securities; active investing
How is the current yield calculated?
Annual payment / Current price