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M TO P
Margins
Usually profit margin - the profit as a percentage of the sales value.
Market Capitalisation
The market capitalisation or market cap of a company is the current share price multiplied by the number of shares in issue.
Mid Price
The mid point between the bid and offer price quote in the market.
Minority Interest
Minority interest is the interest of minority shareholders in a company where more than 50% of the shares are owned by a holding company.
Net
After tax or other items have been deducted from the "gross" amount.
Net assets
Net assets refers to a company's assets minus their liabilities. It is the same thing as the equity or the shareholders' funds.
Net Debt
Net debt is the total of all the loans and overdrafts that a company has outstanding at a point in time, less any cash or short term investments (on the assumption that these could be used to repay some of the debt).
Nominal Value
All shares have a nominal or par value. This value bears no relation to the market price of the shares, and is usually related to the very first issue price of the shares. From then onwards, the nominal value is of little significance except that legally, shares cannot be issued at a price below nominal value. When shares are issued, the nominal value is recorded as share capital and any amount paid over nominal value is recorded as share premium.
Offer Price
The price at which shares may be sold in the Market.
Operating margin
Operating profit as a percentage of turnover or sales.
Operating Profit
Operating profit is the profit that the company makes, before taking into account interest, tax and dividends. Operating profit is also known as EBIT (earnings before interest and tax) or PBIT (profit before interest and tax).
Option
An option gives the holder the right, but not the obligation, to buy or sell a specified amount of an asset, probably ordinary shares, at a specified price within a specific time period.
Ordinary shares
An ordinary share is a fixed unit of the share capital of a company. Ordinary shares usually carry one vote per share on important company matters, but no right to a fixed level of dividends.
Payment Date
The date on which a dividend payment is made or scheduled to be made.
P&L
The P&L or profit and loss account shows the income earned during a period and the expenses incurred, and how they combine to make a profit or a loss.
PBIT (profit before interest and tax).
PBIT is the profit that the company makes, before taking into account interest, tax and dividends. PBIT is also known as operating profit and EBIT (earnings before interest and tax).
P/E Ratio
The price/earnings ratio or P/E Ratio is a simple measure for comparing the relative valuations of different companies. The P/E ratio is equal to a stock's share price divided by its earnings per share over a 12-month period, usually the trailing period but occasionally the current or forward period. The higher the P/E ratio, the more the market is willing to pay for each penny of annual earnings. The last year's price/earnings ratio (P/E ratio) would be actual, while current year and forward year price/earnings ratio (P/E ratio) would be estimates, but in each case, the "P" in the equation is the current share price. Companies that are not currently profitable (that is, ones which have negative earnings) don't have a P/E ratio at all. You would expect a relatively high P/E for growth companies and recovery situations and a relatively low P/E for ex-growth or mature companies, or where companies or sectors have bad prospects. One use of the P/E ratio is as a measure of the attractiveness of the stock.
Preliminary Results
A company's full-year results, announced as a prelude to the publication of the report and accounts. Also Prelims.
Prelims
See Preliminary results
Pre Tax Profit
Pre Tax Profit is the profit of a company after adding or deducting interest, but before deduction of corporation tax. Also known as profit before tax or earnings before tax.
Pre tax profit margin
Pre-tax profit as a percentage of turnover
Profit & Loss Account
The profit and loss account (P&L) shows the income earned during a period and the expenses incurred, and how they combine to make a profit or a loss.
Profit Before Tax
Profit before tax is the profit of a company after adding or deducting interest, but before deduction of corporation tax. Also known as pre tax profit or earnings before tax.
Proxy
A form by which a shareholder votes without needing to attend an annual or extraordinary general meeting by appointing someone else to vote on his or her behalf. Proxies can also be used to transfer voting authority to another party.