Investor Education

A financial statement that illustrates a company’s assets (what the company owns), liabilities (what the company owes), and shareholder equity. It is one of the three main financial statements, and it signifies the financial stance and worth of a company.

A form of an investment strategy to obtain risk-reward balance by allocating the assets of a portfolio with regards to an individual's objectives, risk appetite, and investment.

This is a way of describing the market when it faces continuous price increases.

This is a way of describing the market when securities fall for a sustained period. So, a condition in which the price of securities drops 20% or more from recent highs due to popular suspicion and negative investor opinions

A financial service that involves the management of high-value investments with the goal to increase the total wealth over time. This kind of service is offered by financial institutions.

It’s a ratio that measures the value of revenue of a firm relative to the value of its assets. It indicates the level of efficiency at which a company is utilizing its assets to generate revenue.

An authorized person whose duties are to carry out an audit, which basically is conducting a review of the financial reports of a company to check on their accuracy and whether it is produced as per the required standards

An item that comes under liabilities section of the balance sheet, specifically under current liabilities, and it represents the amount that is owed to the suppliers and creditors for goods and services that have been received from them and have not yet been paid for.

A series of payments made at regular intervals over a specified time period. Examples include regular deposits made to a savings account or monthly insurance payments.

This refers to unusually high or returns generated by an investment over a certain period. When performance deviates significantly from investment’s expected return, it is considered an abnormal return

This is a form of schedule, in tabular form, that illustrates the periodic loan payments, often monthly, and how much of these periodic payments are related to the interest, and how much to the principal The schedule is a helpful tool that can aid lenders to oversee and help keep track of what the payment is and when it's due, along with being able to expect the outstanding balance or interest at any point in the duration.

The common asset classes are stocks, sukuk/bonds, and cash Investments. Any other asset classes such as real estate, private equity, venture capital, and commodities are considered alternative investments.

A transaction that occurs when one company buys enough shares of the target company that gives control to the acquirer.

This occurs when two or more companies combine to become one large company and, unlike a merger, the old companies do not exist anymore, and a completely new entity emerges from this process.

Converting an investment return into a comparable annual return so that analysis can be performed to comprehend the returns on a yearly basis

A formula that is useful in calculating the annual percentage rate of return of a particular project (Average annual profit divided by initial investment)

An asset item that consists of amounts owed to the firm for goods and services delivered to the customers but not yet paid for

Also known as the quick ratio, it is mostly used to determine if a company has enough cash and short-term assets (that can easily be converted to cash) to pay its current liabilities. Inventory is excluded from the calculation of this ratio.

This is net cash flow a company generates after accounting for company’s operating, investing (capital Expenditure, other investment) and financing cash outflows.

This is also a widely used valuation measure, particularly for financial companies. The ratio is calculated by dividing latest stock price of a company to its book value per share. Like P/E ratio, P/BV ratio can also be calculated based on historical annual earnings (trailing P/BV) or prospective annual earnings (Prospective or forward P/BV).