Stock Analysis
See the "anal" in there. Yeah, you have to be very uptight when you analyze stocks.
But what does stock analysis even really mean? In what form are you analyzing? Fundamentals? Charts? Crystal ball?
Over time, most experts agree that the best valuation metric for stocks over time is their earnings. But...what year's earnings? This year's? Last year's? The earnings three years from now? And what does the company actually do? What does it do that's hard? What does it do that people value and will pay for? Is it in a growth industry, or is it selling paper pulp? How's the company valued relative to the overall market? Are its profit margins going up or down? What will it be doing in n years?
And on and on and on (and on) it goes. That's what the trade is all about. And if you're good, you get paid highly. So, um, go for it.
Related or Semi-related Video
Finance: What Happens When your Stock Sp...56 Views
Finance allah shmoop shmoop what happens when your stock splits
Well for one thing it's not is embarrassing Is when
your pants split Trust me thie Answer Mohr pie pieces
that's What happens when your stock splits That's it well
here's the pie before the split This pie represents the
dessert company pastry holic synonymous And if you look carefully
with a big fat zoom in microscope while you khun
see ten million slices of this pie that's ten million
shares currently on the market trading that comprise the value
of this entire company Well the stock has done great
It has had a big fat rise in zooming to
one hundred dollars a share valuing the company at a
billion dollars How no that's not magic With the stock
market paying one hundred dollars a share for pastry hollis
anonymous multiplies that hundred dollars by the ten million shares
to get the market capitalization or market value of the
company Yep a cool bill in this case Well the
company wants to split the stock for four for one
to make it easier for less wealthy people toe by
at least one hundred shares And if people buy fewer
than a hundred shares While there's usually much more commission
they pay for not buying what's called around lot so
the company splits the stock for for one and now
instead of ten million tiny slices they have forty million
teeny tiny slices and no that's not by magic For
everyone who had one share before Now they have four
The stock price should fall on the day of the
split from one hundred bucks to twenty five bucks a
share and that's it pastry Hollis anonymous now has forty
million shares outstanding with wall street paying twenty five bucks
a share for them and voila the value of the
company or its market capitalization has not changed it's still
that same cool bill we started out with on ly
Now that cool bill is chopped up into smaller pieces
Wow counting has never made us so hungry for a
nice piece apply Is this gluten free that maybe tax 00:02:05.7 --> [endTime] free You got any tax free pies
Up Next
A fundamental analyst is basically the opposite of a chartist - they care about a company's earnings, profit margins, gross rates, etc.
There’s an old saying on Wall Street: People who want to make a lot of money buy stocks. People who have a lot of money buy bonds. The amount of...
What are Cyclical and Countercyclical Stocks? Stocks in businesses that are sensitive to the overall economy and consumer sentiment are described a...