Stock to Flow

A means to measure the abundance of a particular resource.  It’s determined by the amount of a resource held in reserves divided by the amount that is produced annually.  The Stock to Flow ratio essentially shows how much supply enters the market each year for a...

Fungibility

The ability of a good or asset to be exchanged  with other goods or assets of the same value.  For instance, money is a prime example of a fungible asset, in the sense that a $1 bill is convertible into 4 quarters.  Goods and assets that are non-fungible are assets...

Carrying Value

A measure of value for a company’s assets.  It’s typically determined by the original cost of the asset minus any depreciating factors.  These factors vary based on the nature of the asset (eg, land is an asset not generally considered depreciable).  The...

Depreciation

An accounting practice of spreading out the payment of an asset over time (typically over the course of the asset’s useful life).  For assets like machinery or technical equipment, it’s prudent to spread out the cost of the asset and begin generating...

Appreciation

The rise of the market price of an investment.  The appreciation of an investment is the difference between the price bought at and the price sold at of an investment.  For example, if a stock is bought at $15 per share and rises to $20 per share, the capital...

S & P 500

An abbreviation for the Standard & Poor’s 500 Index.  It is a free-float weighted measurement stock market index of the 500 largest companies listed on stock exchanges in the United States.  It is one of the most commonly followed equity indices.  It is...