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Showing posts from June, 2022

What is balance sheet in stock market

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Assets = liabilities + equity  At the end of the company’s reporting period, a snapshot is taken of the company’s financial health. A balance sheet allows owners to get a glimpse into the company’s financial standings. The balance sheet is one of the three primary financial statements that business owners use. It allows owners to get a glimpse into the company’s financial standings and see what the company’s financial position is. It shows what assets are owned, which liabilities are outstanding, and any equity that has been made. Assets  Assets are the things companies own and are categorized into two categories; current and non-current assets. Current assets are defined as cash and any other asset that will be turning into cash within the company’s operating cycle. Assets are the top part of the balance sheet and will be listed in the order of liquidity. Liquidity meaning that this item can be turning into cash quickly. An example of what order current assets wou...

What is volume in stock market

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Trading volume is the number of shares traded on that particular day. Trading volume can give you a lot of information about price movement if followed properly. * If price go up with increase in volume, prics are likely to increase more. * If price go down with increase in volume, it is likely to go down further. * If price go up without increase in volume, it may come down any time. * Similarly if prices go down without any volume, it may bounce back. * There are many other theories attached to volume and it mostly help one to decide short term trading direction for market but it's not fail safe. Hope this helps

What is market cap in stock market

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Market cap—or market capitalization—refers to the total value of all a company's shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. 

What is EPS value in stock market

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EPS - Earning per Share is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability. EPS indicates how much money a company makes for each share of its stock, and is a widely used metric to estimate corporate value. The higher a company's EPS, the more profitable it is considered to be.

what is P.E ratio in stock market

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The price to Earning ratio is used for valuing the company. it measures its current share price relative to its per-share earnings. Formula = share price/Earning per share