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  • Welcome to the Investors Trading Academy talking glossary of financial terms and events.

  • Our word of the day isTop Line”. The top line refers to a company's gross sales

  • or revenues. Therefore, when people comment on a company's "top-line growth", they are

  • making reference to an increase in gross sales or revenues.

  • For example, a company would be experiencing top-line growth if a new advertising campaign

  • caused a 15% increase in sales for its widgets, which resulted in an increase of $2 million

  • to the revenue. Bottom-line growth would occur in a situation where a company found a new

  • supplier for raw materials that result in a cost savings of $4 million.

  • Top Line is Gross Revenues; that is, every single dollar that comes in the door from

  • the sale of your product or services. Bottom Line is Net Profit; the final amount of profit

  • or loss you end up with after paying all your expenses

Welcome to the Investors Trading Academy talking glossary of financial terms and events.

Subtitles and vocabulary

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