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Money words

Free cash flow

The cash a company has left after paying its bills and investing in the business. Investors watch it to see how healthy a company is.

How “free cash flow” came up in recent issues.

Cost per month
The price of something divided by the number of months you use it. It shows the real cost of a big purchase.
Demand
How much of something people want to buy at each price. When the price goes up, people usually buy less.
Dow Jones Industrial Average
A stock market index that tracks 30 large U.S. companies.
Earnings per share
A company's profit divided by its number of shares. Wall Street compares it with what analysts expected.
Guidance
A company's forecast of its future sales or profits. Stocks often move more on guidance than on past results.
Memory chip
A computer part that stores data, found in phones, laptops and game consoles.

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