Trading Basics
EBITDA
Earning Before Interest Tax Depreciation and Amortization. A profit measure of a company that approximates to cash earned before financing and capital purchases.
Other Trading Basics
Annuity
A guaranteed income for the rest of someones life.
Historically purchased with pension lump sums.
The buyer is swaping cash now for future income.
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.
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