Basic stock lingo2/28/2024 Synonyms: 401(k) plan, 401(k), 401k plan 529 college savings account The contributions go into 401(k) accounts, with the employees often choosing the investments based on the plan selections. To read this article on click here.Also known as a contract’s value, notional value is calculated by multiplying the size of the contract by the current price 401(k) plansĪ 401(k) plan is a defined-contribution plan where employees can make contributions from their paychecks either before or after tax, depending on the plan selections. Microsoft Corporation (MSFT) : Free Stock Analysis ReportĪctivision Blizzard, Inc (ATVI) : Free Stock Analysis ReportĮxxon Mobil Corporation (XOM) : Free Stock Analysis Report Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Tune into this week’s podcast to find out. What Other Confusing Investing Terms Should Beginners Know About? It’s usually not as difficult as it seems. New investors shouldn’t get thrown by fancy investing lingo. Earlier in the year, Warren Buffett announced that he had put on a big arbitrage trade, buying 9.5% of Activision Blizzard in the belief that Microsoft would be able to go through with the deal and he would make the difference. But Activision Blizzard is now trading around $79. Microsoft has an offer to buy Activision Blizzard at $95 per share. He is betting the court orders the deal to go through at $54.20. David Einhorn at Greenlight Capital recently announced he bought a position, with an average price of $37.24. They are betting that the deal goes through and they make the difference.įor example, Elon Musk offered to buy Twitter at $54.20 but the shares recently traded in the $30s. The first is with Elon Musk’s offer to buy Twitter TWTR and the second is with the Microsoft’s MSFT proposed acquisition of Activision Blizzard ATVI.Īrbitrage is when a trader buys shares of a company that has an acquisition offer because those shares are under the buy out price. There are two good examples of the arbitrage trade occurring right now. What is Arbitrage? Twitter and Activision Blizzardīeginning investors might have heard the word “arbitrage” thrown around recently and wondered what it was all about. Be sure you know which type of P/E you are using. But ExxonMobil’s trailing P/E is more than double, at 16.1. It can be a problem when a company has strong year-over-year earnings growth like ExxonMobil XOM.ĮxxonMobil is expected to grow earnings by 125% in 2022. YahooFinance has the trailing P/E on its main quote page but Zacks has the forward P/E. Just know that it’s not about share price when looking at valuation.Īnother confusing concept for beginners may be on what type of P/E is being used. Yet Apple has one of the highest P/Es among the FANGMAN stocks. When analysts on television say it is “expensive” they are likely talking about its P/E.Īpple’s earnings are only expected to rise 8% this fiscal year. ![]() You might have heard analysts saying Apple AAPL is “expensive.” Yes, it’s trading over $150 a share, but the price isn’t what the analysts are talking about.Īpple currently trades with a forward P/E of 26. But you’re confused by some of the terms that are thrown around. Perhaps, you are new to stock investing and have started listening to this podcast and watching CNBC. ![]() This week, Tracey is going solo to give some help to beginner investors. (33:35) - Episode Roundup: AAPL, MSFT, XOM, TWTR, TSLA, ATVI, to Episode #325 of the Zacks Market Edge Podcast.Įvery week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. (25:30) - The Federal Reserve: Hawkish vs Dovish (20:15) - What Exactly Is Arbitrage and How Can You Use It? (6:45) - Understanding How To Use Stock Valuation Metrics (0:30) - How To Start Investing Right Now: Basic Stock Terms
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