Trading Basics
Book Value
A valuation of something using its net assets on the balance sheet.
A very rough way of valuing an asset because it ignores the intangibles.
Other Trading Basics
Acquisition
When the majority of shares changes hands in a company.
This is typically when one company buys another.
Cash Call
When your broker asks you to deposit more cash into your brokerage account to cover margin requirements.
Credit Rating
An entities perceived ability to repay its debt. Provided by credit rating agencies. AAA is the best credit rating.
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Learn the skills needed to trade the markets on our Trading for Beginners course.