Summerfuel FinanceClass 5: 7-13-2016

The Wall Street JournalWhat’s Happening ?

http://www.wsj.com/news/markets

Stock Reports

Google Financehttps://www.google.com/finance

Price to EarningsThe price-earnings ratio (P/E Ratio) is the ratio

for valuing a company that measures its current share price relative to its per-share earnings.

The price-earnings ratio can be calculated as:Market Value per Share / Earnings per ShareFor example, suppose that a company is

currently trading at $43 a share and its earnings over the last 12 months were $1.95 per share. The P/E ratio for the stock could then be calculated as 43/1.95, or 22.05.

Earnings per shareEarnings per share (EPS) is the portion of a

company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.

Net Income / Shares of Stock

Debt to EquityThe D/E ratio indicates how much debt a

company is using to finance its assets relative to the amount of value represented shareholders’ equity.

Debt /Equity Ratio = Total Liabilities/Shareholders' Equity

Return on EquityReturn on equity (ROE) is the amount of 

net income returned as a percentage of shareholders equity.

Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Return on Equity = Net Income/Shareholder's Equity

Stock ExchangesThe stock market is the market in which

shares of publicly held companies are issued and traded either through exchanges.

Also known as the equity market, the stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company.

60 Stock Exchanges in the WorldA Total Value of $69 Trillion

http://money.visualcapitalist.com/all-of-the-worlds-stock-exchanges-by-size

INDEXES A numerical measure of price

movement in financial markets; a barometer for a given market.DOW JONES INDEX  The most widely used indicator of the overall condition of the U.S stock market; a price-weighted average of 30 actively traded blue chip stocks. NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS (NASDAQ) A computerized New York-based U.S. stock exchange, usually primarily representing a market for technology companies. STANDARD & POOR'S 500 Index (S&P 500)A well known index computed by Standard & Poor's Corporation, determined by the price action of 500 widely held large corporations from different sectors of the economy; it is frequently considered representative of the stock market as a whole.

BULL MARKET A bull market is a prolonged period where

investment prices rise faster than their historical average, as a result of economic recovery, boom, or investor psychology.

Bear MarketA bear market is a prolonged market period where

investment prices fall, usually accompanied by widespread pessimism, as a result of economic recession, high unemployment, or rising inflation.

 

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