Investment terminology

Benchmark Risk—A collective measure of the various
risks related to the potential for the returns of a unit
trust to differ significantly from the returns of the benchmark
against which it is measured.
Debt to capital—Indicates the percentage that debt
comprises of total capital; calculated by dividing each
underlying fund holding’s total debt by total capital. A
large debt/capital ratio indicates that a company is highly
leveraged.
Market capitalization—A determination of a company’s
value, calculated by multiplying the total number of
company shares outstanding by the price per share. Also
called capitalization.
Operating Margin—A measurement of what proportion
of a company’s revenue is left over after paying for
variable costs of production such as wages, raw materials,
etc.
Price/Earnings ratio (P/E) – The share price of a share,
divided by its per-share earnings over the past year. For
a portfolio, the weighted average P/E ratio of the shares
in the portfolio. P/E is a good indicator of market expectations
about a company’s prospects; the higher the P/E,
the greater the expectations for a company’s future
growth in earnings.
P/E to Growth—A ratio used to determine a shares value
while taking into account earnings growth.
Return on equity—A measurement of a corporation’s
profitability that reveals how much profit a company
generates with the money shareholders have invested.