Return on Assets (ROA): A financial ratio that indicates how profitable a company is relative to its total assets. It shows how efficiently a company generates net income from its assets.
Paid-in Capital Increase (Rights Offering): A method by which a company issues new shares and sells them to existing or new shareholders to raise capital.
Bonus Issue (Stock Dividend, Capitalization Issue): The issuance of additional shares to existing shareholders without requiring payment, using the company’s reserves.
Capital Reduction (Stock Reduction, Share Buyback and Cancellation): The process of reducing a company’s capital by decreasing the number of outstanding shares or their value, often the opposite of a capital increase.
KOSPI (Korea Composite Stock Price Index): The main stock market index of South Korea, based on market capitalization of listed companies. It was set at 100 points on January 4, 1980.
KOSDAQ (Korea Securities Dealers Automated Quotations): A South Korean stock market primarily for small- and mid-sized companies, similar to the U.S. NASDAQ.
Over-the-Counter (OTC) Trading: Trading outside the official stock exchange, often conducted at securities firms’ offices.
Share Buyback (Stock Repurchase): When a company purchases its own shares to stabilize its stock price, protect itself from hostile takeovers, or increase shareholder value.
Share Cancellation (Stock Retirement): The act of a company purchasing and permanently retiring its own shares, reducing the number of outstanding shares and increasing the value per share.
Dividend: A portion of a company’s earnings distributed to shareholders, usually in cash or additional shares.
Stock Dividend: A dividend payment made in the form of additional shares instead of cash.
Interim Dividend: A dividend paid before the end of a company’s fiscal year, usually from estimated earnings or reserves.
Preferred Stock (Preferred Shares): A type of stock that offers priority in dividend payments over common stock but lacks voting rights.
Ex-Rights Date (Ex-Rights Adjustment): The date on which a stock trades without the rights to newly issued shares, meaning new shareholders will not receive additional stock from an upcoming rights offering.
Ex-Dividend Date (Ex-Dividend Adjustment): The date after which new buyers will not receive the upcoming dividend, or the stock price adjustment reflecting dividend distribution.
Stock Split: A division of existing shares into multiple shares without changing the company’s overall capital, increasing the number of shares and improving liquidity.
Stock Price Chart (Stock Chart): A visual representation of price movements over time, used for trend analysis and decision-making.
Bullish Candle (Green/Red Candle): A candlestick in a stock chart that closes higher than it opens, often represented in red (Korean charts) or green (Western charts).
Bearish Candle (Blue/Black Candle): A candlestick in a stock chart that closes lower than it opens, typically shown in blue (Korean charts) or black (Western charts).
Daily Candlestick (Daily Chart, One-Day Candle): A chart representation showing the stock’s opening price, highest price, lowest price, and closing price for a single trading day.
Weekly Candlestick (Weekly Chart, One-Week Candle): A candlestick chart displaying the stock’s price movement over a week.
Monthly Candlestick (Monthly Chart, One-Month Candle): A candlestick chart showing the stock’s price movement over a month, including the opening, highest, lowest, and closing prices.
Moving Average (MA): A line created by connecting the arithmetic average of stock prices over a specific period. It helps analyze price trends.
Support Line (Support Level): A trendline on a stock chart that connects multiple low points, indicating a price level where the stock tends to stop falling and reverse upwards.
Resistance Line (Resistance Level): A trendline connecting multiple high points on a stock chart, indicating a price level where the stock struggles to rise further and often reverses downward.
Golden Cross: A bullish signal in technical analysis where a short-term moving average crosses above a long-term moving average, suggesting a potential upward trend.
Death Cross: A bearish signal in technical analysis where a short-term moving average crosses below a long-term moving average, indicating a potential downtrend.
