Return on Equity (ROE) is used to measure how much profit a company is able to generate from the money invested by shareholders. Click on this post to see how it is calculated, what kind of ROE you should look for, and more!

EPS (Earnings-Per-Share) measures how much of a company’s net income actually trickles down to each outstanding share. EPS is a good estimator of how much money each shareholder is entitled to from the profits of the company.

PE Ratio (Price-to-Earnings) is a valuation ratio that compares the price per share of a company’s stock to its earnings per share. It basically shows how much investors are willing to pay for a share given the earnings currently generated.

Fundamental Analysis is the process of looking at the basic financial level of a business by assessing factors like sales and earnings.

In a Covered Call strategy, the call option that is written is “covered” by the underlying stock in case the person on the other side of the option exercises it. It is for investors who feel that the stock price will either remain stable or will grow.