#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