So if we know how much money a company makes, what they spend it on and what I could sell it for if it closed tomorrow.then should I be buying a piece of this company ?Ĭoming up in the next issue. Profit/Loss - The cash amount after a full year of trading -> from Income Statementīook Value - The true value of a company per share -> from Balance SheetĮarnings Per Share - How much I would earn after a year if I bought 1 share Income Statement - How much money a company makes after a year of doing businessīalance Sheet- If I close the business tomorrow and sell everything, how much money would I be left withĬash Flow Statement - How a company makes its money and what it spends it on (this feeds into the income statement) Bond: A bond is a fixed income investment in which an investor loans money typically corporate or governmental which borrows the funds for a defined period of time at a variable or fixed interest rate. So if I am buying a portion of the company why would I worry about what others are selling or buying it at ?Īll I started focusing on is what the company is really worth and can I get it at a price lower than this ?īasic financial jargon/reports and my crude interpretations: "When you buy a stock you don't just buy a ticker symbol on a sheet, you are buying a portion of a company" - Benjamin Graham Instead I spend most mornings happily stuck in traffic as I listen to tutorials from the website. Youll most likely just lose money on the commission generated from. As a rule of thumb, we don’t recommend trading stocks with liquidity below a million shares traded on the day. For longer time frames such as year-to-date or 12-month returns, the financial news reports will often provide those results in percentage terms. Setting a 5 stop-loss order on a stock that has a history of fluctuating 10 or more in a week may not be the best strategy. As with any stock, you want to make sure there are enough shares being traded so that you can get in and out with the size you want. Before beginning my glossary, let me first define the scope of this glossary. You can always ask question but this list of common terms will be a great guide to reference. So, check out this stock market glossary for some stock terms and meanings. You are going to hear a lot of medical jargon in the NICU. "To become an intelligent investor your aim is to always buy from the pessimist and sell to the optimist - The Intelligent Investor by Benjamin Graham"įive years later and my portfolio is up 32% and I no longer track my stocks daily as if watching a horse at the races. One stock’s movement can often signal a change in the others. This article gives to the point, elementary meanings of stock market terms.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |