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savagenmvj: One is often at a loss to explain the meaning of certain financial terms, necessary for any successful attempt at taming the stock market. Large corporations like Walmart, Dell and Lego operate all over the world. The shares are sold at a fixed...
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One is often at a loss to explain the meaning of certain financial terms, necessary for any successful attempt at taming the stock market. Large corporations like Walmart, Dell and Lego operate all over the world. The shares are sold at a fixed value in this initial sale, after which they can be traded on the secondary market, which is the stock market. Shares can be bought on the stock exchange with the help of a broker, or they may be purchased directly from the company. Another very popular method of valuation of company stock is the Earnings per share formula, which gives you the net income of a company in relation to every unit of stock it holds. Selling is much the same as purchasing, except that one may have to pay the capital gains taxes on the proceeds earned by the way of sales, if these come within the limits of the taxation law. Although the pricing mechanism in stock markets works extremely well, it is often prey to sentiment and investor emotion. There are several mathema
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