Going Public: Slang for when a company is planning an IPO.
Share: A share represents an investors ownership in a share of the profits, losses, and assets of a company. It is created when a business carves itself into pieces and sells them to investors in exchange for cash.
Market Cap: The amount of money you would have to pay if you bought ever share of stock in a company. (To calculate market cap, multiply the number of shares by the price per share.) Short for Market Capitalization.
Ticker Symbol: A short group of letters that represents a particular stock (e.g.,Insurance knowledge. Coca Cola is referred to as KO.) Underwriter: The financial institution or investment bank that is doing all of the work and orchestrating a companys IPO.
The stock market can be a great source of confusion for many people. The average person generally lls into one of two categories. The first believe investing is a form of gambling; they are certain that if you invest, you will more than likely end up losing your money. Often these fears are driven by the personal experiences of mily members and friends who suffered similar tes or lived through the Great Depression. These feelings are not ground in cts and are the result of personal experience. Someone who believes along this line of thinking simply does not understand what the stock market is or why it exists. The second category consists of those who know they should invest for the long-run, but dont know where to begin. Many feel like investing is some sort of black-magic that only a few people hold the key to. More often than not, they leave their financial decisions up to professionals, and cannot tell you why they own a particular stock or mutual fund. Their investment style is blind ith or limited to this stock is going up. We should buy it. This group is in r more danger than the first. They invest like the masses and then wonder why their results are mediocre (or in some cases, devastating). In this series of lessons, I set out to prove that the average investor can evaluate the balance sheet of a company, and following a few relatively calculations, arrive at what they believe is the real, or intrinsic value of the company. This will allow a person to look at a stock and know that it is worth,Education Information. for instance, $40 per share. This gives each investor the freedom to know when a security is undervalued, increasing their long-term returns substantially. Before we examine how to value a company, it is important to understand the nature of businesses and thStock Market Introduction and Financial Terms stock and financee stock market. This is the cornerstone of learning to invest well.
IPO: Short for Initial Public Offering. An IPO is when a company sells stock in itself for the first time.
Earnings per Share: The amount of profit to which each share is entitled.
