LUV

Definition

LUV is the ticker symbol for Southwest Airlines Co., a major American airline. It is often analyzed as an individual asset to understand its risk and return characteristics in the market.

5 Must Know Facts For Your Next Test

1. LUV is known for its low-cost business model, which impacts its risk profile and return potential.
2. Southwest Airlines' performance can be influenced by factors such as fuel prices, economic conditions, and operational efficiency.
3. Understanding LUV's historical stock performance helps investors gauge its volatility and expected returns.
4. LUV has historically paid dividends, which can impact the total return on investment.
5. The beta of LUV stock indicates its market-related risk compared to other assets.

Review Questions

• What business model does Southwest Airlines (LUV) follow, and how does it impact its risk?
• Which external factors significantly influence the performance of LUV?
• How does the beta of LUV provide insight into its market-related risk?

Related terms

Beta: A measure of a stock's volatility in relation to the overall market.

Dividend Yield: A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Volatility: A statistical measure of the dispersion of returns for a given security or market index.