Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

nifty fifty

The Nifty Fifty was a group of US companies, including IBM, Coca-Cola and General Electric, that became popular among investor during the 1970s because of their perceived superior earnings growth.

At that time, investors began to look not only for income from dividends, but for companies that looked likely to grow their earnings rapidly as well. A focus on yield as the primary metric for valuing companies gave way to an increasing emphasis on the price/earnings (p/e) ratios. 

Investors...