Category: Stock Research

  • The most important features of bond

    The most important features of a bond are: nominal, principal or face amount—the amount over which the issuer pays interest, and which has to be repaid at the end. issue price—the price at which investors buy the bonds when they are first issued. The net proceeds that the issuer receives, are calculated as the issue…

  • Selecting Investments in a Global Market

    Investors who want the broadest range of choices in investments must consider foreign stocks and bonds in addition to domestic financial assets. Many foreign securities offer investors higher risk adjusted returns than do domestic securities. In addition, the low positive or negative correlations between foreign and U.S. securities make them ideal for building a diversified…

  • Understanding P/E Ratio

    The P/E ratio (price-to-earnings ratio) of a stock is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net…

  • Understanding Options Strategies

    An option strategy is implemented by combining one or more option positions and possibly an underlying stock position. Options are financial instruments that give the buyer the right to buy (for a call option) or sell (for a put option) the underlying security at some specific point of time in the future or until some specific…

  • Operating Margin: Calculation and Usage

    Operating margin, also known as “operating profit margin” or “net profit margin”, is a ratio used to measure a company’s pricing strategy and operating efficiency. It is a measurement of what proportion of a company’s revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy operating…

  • The Implications of Price Gaps

    Price gaps are simply areas on the bar chart where no trading has taken place. In a uptrend, prices open above the highest price of the previous day, leaving a gap or open space on the chart that is not filled during the day. In a downtrend, the day’s highest price is below the previous…

  • ETFs vs Mutual Funds and The Fundamental Difference

    ETFs are very much like mutual funds. That is, they are baskets of stock that are bought and sold. But they have many differences  from mutual funds. The fundamental difference between ETFs and mutual funds in that shares of ETFs can be traded at any time while the host stock market is open. Mutual funds,…

  • When Oscillators Are Most Useful

    Most oscillator buy signals work best in uptrends and oscillator sell signals are most profitable in downtrends. The place to start your market analysis is always by determining the general trend of the market. If the trend is up, then a buying strategy is called for. Oscillators can then be used to help time market…

  • What Is Operating Cash Flow? How To Use Operating Cash Flow?

    Operating cash flow (OCF), usually more formally described in accounts as “cash inflow from operating activities”, is the amount of actual cash made by a company’s business, generally defined as revenues less all operating expenses, but calculated through a series of adjustments to net income. The OCF can be found on the statement of cash…

  • What Is Price/Cash Flow Ratio?

    The price/cash flow ratio (also called price-to-cash flow ratio or P/CF), is a ratio used to compare a company’s market value to its cash flow. Because this measure deals with cash flow, the effects of depreciation and other non-cash factors are removed. Similar to the price-earnings ratio, this measures provides an indication of relative value.…