Archive for the ‘General’ Category

August 12, 2011 | In: General

Can Stocks Go Negative?

I had a small discussion with my grandfather the other day. He noticed that I don't seem to work in a company, and yet I have money. So one day he asked me "What do you do in life to make money?". I have answered, "Several things". "Like what?", he asked....

I'm sure you've already heard about the bloodbath yesterday on Wall Street. The Dow was down 4.31% and the S&P 500 was down 4.78%. The market is obviously in panic mode. I think at this point, it would be interesting to know how much money the stock...

I know that this post has nothing to do with stocks, but I think that many MBA candidates will benefit from it, and that's why I'm publishing it on my website. When you want to apply for an MBA, you are asked for a statement of purpose, here's what...

July 27, 2011 | In: General

What Is a Good P/E Ratio?

A P/E Ratio (meaning the Stock Price/Earnings ratio) is an important metric in assessing the health of a stock. A P/E Ratio is simply the price of the stock divided by the current yearly earnings per share. Let's look at C (NYSE:C). C has a current price...

July 13, 2011 | In: General

When Is a Stock Overvalued?

Long term investors usually do some due diligence on a stock before buying it. This due diligence consists of knowing the long term technical information about the stock, informing themselves about the company's business and potential future, and, of...

One of the common terms in stock trading is the market capitalization or the "market cap". The market capitalization of a company is, in short, the company's value as determined by the market. For example, at this moment, the market capitalization of...

July 7, 2011 | In: General

What Are Married Puts?

We all know that the majority of people don't trade stocks, because they think that: - Stock trading is a form of gambling - Stock trading can be very risky We, stock traders, laugh at the first point, because real stock trading doesn't just...

July 1, 2011 | In: General

What Is a Penny Stock?

I never paid attention to all these ads about penny stocks (you know, make 100% of your investment in a week or so), but lately I'm noticing these ads more and more, so I decided to make a small research on penny stocks to know what they are, whether they...

June 24, 2011 | In: General

Days to Cover Calculation

The days to cover, also referred to as short interest ratio, is the number of days that it takes for all short shares to be covered (e.g. bought back by the investor to return them to the borrower), based on the daily average trading volume of the stock....

According to Google Finance, the Dow is currently trading at 0 (down 12,190 points), which effectively means that the stock market has she all its value in one trading day, and all companies listed under the Dow are completely worthless. If you don't...

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