Rainwater Glossary

  1. CapEx: Capital Expenditure refers to the money a company spends on acquiring, upgrading, or maintaining physical assets like property, plant, equipment, and technology.
  2. Cash flow: the movement of money both into and out of a business, project, or financial product over a specific period. It measures the previous, current, and future value of a company’s assets based on the financial behavior that a company demonstrates.
  3. Alpha: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark is a fund’s alpha.
  4. Price-to-Earnings Ratio (“P/E Ratio”): Current share price of a stock divided by its earnings per share.
  5. Mag 7: The Magnificent Seven stocks refer to seven large, influential technology and tech-related companies that have significantly driven market performance in recent years. These companies are: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), Nvidia (NVDA), and Tesla (TSLA).

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