P/E Price to Earning Ratio is the current price of the shares divided by the EPS (earnings per share) Understand How P/E Price to Earning Ratio Works The value of a stock is often determined by what the P/E ratio is compared to its growth rate. A stock that trading … Continue reading
Secondary Offering is a selling of a large block of shares issued by companies to raise additional money. Some of the shares that make up the offering could be from insiders selling and some may be new shares issues thus increasing the outstanding shares and possibly diluting the shares. Understand … Continue reading
Short Sale is selling shares of a stock that you don’t own by borrowing the shares in which to sell. The goal is to buy them buy at a cheaper price for a gain if you think the stock is going to drop. Understand How Short Sale Works This is … Continue reading
Stop Order is a market order to buy or sell a stock at a specified price. Understand How Stop Order Works A Stop Order can be used to protect your losses in a market downturn. Say for example you bought at stock at $50 and wanted to limit your losses … Continue reading
Support Level is referred either as index average like the DJIA or an individual stock in which the buyers start to out number the sellers. Resistance level is the opposite of support level. Understand How “Support Level” Works When a stock or index reaches this support level the odds tend to … Continue reading