Capital Appreciation
Capital appreciation refers to the increase in the value of an investment, which growth companies prioritize by reinvesting profits for future development rather than distributing them as current income.
Consensus Estimates
Consensus estimates are the average financial projections (e.g., for EPS and revenue) made by Wall Street analysts for a company’s upcoming earnings report.
Defensive Stocks
Defensive stocks belong to companies that provide essential goods and services, for which demand remains relatively stable regardless of the economic climate.
Defensive Investments
During economic downturns or periods of market uncertainty, blue chips are often considered ‘defensive investments’ because their stable earnings and essential products/services can buffer against severe declines.
Dividend Adjustments
Mechanisms implemented by CFD brokers to neutralize the impact of the stock price drop on the ex-dividend date, ensuring fair value and preventing artificial gains or losses.
Dividends
Blue chip stocks typically distribute a portion of their profits as regular dividends to shareholders, reflecting their stable earnings.
Dollar-Cost Averaging
Dollar-cost averaging is a strategy to invest a fixed amount of money at regular intervals, regardless of market prices.
Earnings Per Share (Eps)
A company’s profit divided by the number of outstanding shares, indicating how much money a company makes for each share of its stock.
Economic Cycle
The economy does not grow in a straight line; it moves through identifiable phases, often described as a business cycle.
Ex-Dividend Date
The most critical date for traders, typically one business day before the record date, on which the stock begins trading without the value of the upcoming dividend.