What Is A Price To Earnings Ratio?
The P/E ratio is the relationship between a company’s stock price and its earnings. Find out how you can use the P/E ratio for your investment strategy.
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The P/E ratio is the relationship between a company’s stock price and its earnings. Find out how you can use the P/E ratio for your investment strategy.
The odds are seemingly stacked against active traders in the marketplace. So, why the attraction to active trading as a profession? Find out here.
In a not-so-distant past, investors who were interested in pooled investments commonly purchased mutual funds, where they could capture the returns of a diversified portfolio using a single investment vehicle. Those funds, however, came with some limitations, among these the fact that positions in them can normally only be adjusted after market hours according to their net asset value (NAV). In more recent years, a new type of pooled investment…
At the core of stock valuation is the notion that a company's current market price may differ from its intrinsic value.
In order to participate in the futures market, an individual assumes responsibility for several transaction costs associated with the facilitation of a trade. Overall, there are four basic types of fees incurred during the active trading of a single futures contract: Exchange/Clearing fees National Futures Association (NFA) fee Data fees Brokerage commissions Futures trading fees are assessed on a per-contract basis. For every contract traded, each type of fee is…
The price-to-sales ratio (P/S) establishes a relationship between the value of a corporation's stock and its annual revenue.
Parallels are often drawn between day trading and nearly every type of sport. Whether one is a seasoned day trader, savvy chess player or a rookie linebacker in the NFL, an age-old axiom sums up performance: "At all levels of play, the secret of success lies not so much in playing well, but in not playing badly." Poor play is often the result of being ill-equipped and trading successfully without…
An ETF (exchange-traded fund) is an equity security that provides exposure to an index, a basket of assets, a commodity or an investment strategy.
One of the most popular ways in which an individual can participate in the financial markets is through the purchase of "stock." A stock is an equity investment in a corporation which entitles the owner to a portion of that corporation's earnings and assets. Stocks are denominated in "shares," with each share representing a small portion of ownership in a company. When one purchases a share of a specific company's…
Companies generally pay dividends as a share of their profits each quarter, annually, or at a moment determined by the company's board of directors.
The foreign exchange market, known as forex (FX), is an over-the-counter market where international currencies are bought and sold. With a daily traded volume near US$5 trillion, forex is the largest marketplace in the world. Forex participants are as diverse as the currencies they trade. Commercial banks, multinational corporations, central banking authorities and individual investors are active players in the market. Whether a country's central bank is actively managing inflationary…
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