What is Index ?

A quantity whose variation represents market fluctuation .The Standard & Poor's 500 index measures the overall change in the value of 500 stocks of the largest firms in the US.

What is holding period return/yield ?

The financial statement of a firm that presents both revenues and expenses during a specified time period.

What is GDP (gross domestic product) ?

The total value of goods and services produced by a nation. In the U.S. it is calculated by the Commerce Department, and it is the main measure of U.S. economic output .In other countries, the GDP is called the gross national product (GNP).

What is meant by going public ?

An expression used to describe the first public selling of shares of an institution that previously sold shares privately

What is fundamental analysis ?

An analysis of stocks based on fundamental factors, such as company earnings, growth potential, etc., to determine a company's worth, strength, and potential for growth

Who is financial planner ?

An investment professional who helps with financial plans for specific goals and assists in the coordination of financial concerns

What is financial strength ?

A company's financial condition as seen by its analysts .Value Line rates financial strength on a scale from A++ to C.

What is DCA (dollar cost averaging) ?

A system of buying securities at regular intervals, using a fixed amount of cash over a considerable period of time regardless of the prevailing prices of the securities .DCA protects against the risk of losing a sum of money invested all at once at an inopportune time, e.g., right before a price drop.

What is diversification ?

The process of buying securities in different investment types, industry types, risk levels, and companies in order to reduce the loss from a possible company-local or industry-local loss of business .Diversification is illustrated by a famous saying, "Don't put all your eggs in one basket."

What is cyclical industry ?

An industry whose success is closely linked to the rise and fall of the general economy . For example the auto industry is a cyclical industry.