#7 - Breaking Down Financial Jargon

In this episode we cover investing basics:

- What is an index (eg. TSX, Dow Jones, S&P 500)?

- ETF: Basket of stocks typically reflecting a particular sector

- Be careful with ETFs and HMMJ

- Hedge Funds vs Mutual Funds

- Actively Managed vs Passively Managed Funds

- Management Expense Ratio (MER)

- Price to Earnings (P/E) Ratio

- Value vs Growth: Low P/E vs High P/E stocks

- Picking a P/E multiplier - Why its so important

- Trailing P/E vs Forward P/E

- Defining EV and EBITDA

- EV: Market Cap - Cash + Debt

- EBITDA: Earnings before Interest, Tax, Depreciation & Amortization

- EV / EBITDA Ratio - what it is and why it's important

- EV/EBITDA vs P/E Ratios - taking debt into consideration