Financial Glossary

The price-to-earnings ratio compares a stock's price per share to its earnings per share, measuring how much investors pay for each dollar of profit.

Mass selling of securities driven by fear rather than fundamentals, often creating sharp price drops and market volatility.

When pharmaceutical companies face massive revenue drops as their blockbuster drugs lose patent protection and generic competition enters.

The theoretical point when global oil production reaches its maximum rate before entering permanent decline.

Strategic acquisitions and mergers in the pharmaceutical sector, often driven by patent cliffs, pipeline gaps, and regulatory pressures.

Large-scale clinical trials testing drug safety and efficacy in hundreds to thousands of patients before FDA approval.

A business model where companies create value by facilitating exchanges between multiple user groups rather than producing goods directly.

The strategic process of buying and selling assets to maintain your target allocation percentages as market movements shift your portfolio.

An analyst's forecast of where a stock's price should trade within 12 months based on fundamental analysis and valuation models.

Price-to-book ratio compares a stock's market price to its book value per share, showing whether investors are paying a premium or discount to assets.

P/S ratio measures a stock's price relative to its revenue per share, showing how much investors pay for each dollar of company sales.

A tax levied by local governments on real estate based on assessed property value, paid annually by property owners.

A legal document disclosing executive compensation, board details, and shareholder proposals before annual meetings.

A contract giving the holder the right to sell shares at a specific price within a set timeframe, providing downside protection.