Learn investing

We are preparing a series of short lessons on the basics of the US stock market. Until then, here are the key terms you will meet in our news.

Key terms

• Share: a small part of the ownership of a company.
• Market cap: the share price times the number of shares; it shows the company's size in the market.
• Earnings per share (EPS): net profit divided by the number of shares.
• EPS estimate: the average of analysts' forecasts for EPS before results are announced.
• P/E ratio: the share price divided by EPS; it compares the price with earnings.
• Dividend: part of the profit a company pays to its shareholders.
• Ex-dividend date: anyone who buys the share on or after this date does not receive the next dividend.
• ETF: a fund that trades like a share and holds a basket of stocks, such as funds that track the S&P 500.
• Federal Reserve: the US central bank; its interest-rate decisions move the whole market.

Market hours

The US market is open Monday to Friday, 9:30 AM to 4:00 PM New York time — 4:30 PM to 11:00 PM Kuwait time for most of the year, one hour later in winter.