Glossary

Earnings

The net income or profit for a company. This amount consists of revenues minus all costs (including taxes).

Earnings Estimates/Forecasts

An analyst's prediction about a particular company's earnings for a future quarter or year based on their research on the company and knowledge of the sector. It is an estimate of whether a company will increase, decrease, or remain flat in its operating income and overall profitability.

Ex-Dividend Date

The date on which the stock begins to trade “without the dividend.” If one buys a stock “ex-dividend” one will not receive the recently declared dividend. Every dividend is payable on a fixed date to all shareholders recorded on the books of the company as of a record date. For example, a dividend may be declared as payable to holders of record of the company on a given Friday. Since three business days are required for delivery of stock in a normal transaction on a major exchange (e.g., NYSE), the exchange would declare the stock “ex-dividend” as of the opening of the market on the preceding Wednesday. That means anyone who bought it on and after Wednesday would not be entitled to that dividend because the trade would not close until after the record date.

Exchange

A registered marketplace where securities are traded. Securities exchanges include the New York Stock Exchange, the NASDAQ, the American Stock Exchange, and regional exchanges such as the Philadelphia Stock Exchange and the Pacific Stock Exchange. Stocks trading on an exchange are referred to as listed securities. CapitalSource is listed on the New York Stock Exchange (“NYSE”).