Category: Stock Research
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Foreign Exchange Market, FOREX or FX
The foreign exchange market (currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that…
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Return On Equity (ROE) and Its Calculation
Return on equity (ROE) is a measure of how well a company used reinvested earnings to generate additional earnings. It is viewed as one of the most important financial ratios. It measures a firm’s efficiency at generating profits from every dollar of shareholders’ equity , and shows how much profit a company earned in comparison…
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Stock Technical Analysis: Accumulation/Distribution Line
A momentum indicator that relates price changes with volume on the assumption that the more significant the volume, the more significant the price move. The Accumulation/Distribution Line has been one of the most popular volume indicators over the years . volume precedes price. Volume reflects the amount of shares traded in a particular stock, and…
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What is P/S Ratio? How To Use P/S Ratio To Value Stocks?
Price to Sales (P/S) Ratio is a financial ratio that compares stock price with sales per share (or market capitalization with total sales). It is for valuing a stock relative to its own past performance, other companies or the market itself. P/S Ratio is used in some industries as another gauge of valuation in addition…
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The PEG Ratio and Thoughts on Using the PEG
The PEG ratio is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected future growth. It is a ratio used to determine a stock’s value while taking into account earnings growth. The calculation is as follows: PEG ratio =(Price/Earnings…
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What Is Money Flow Index? How To Use It?
Money flow in technical analysis is typical price multiplied by volume, a kind of approximation to the dollar value of a day’s trading. Money flow index (MFI) is an oscillator calculated over an N-day period, ranging from 0 to 100, showing money flow on up days as a percentage of the total of up and…
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Gross profit calculation and Gross profit margin
The gross profit is the total revenue subtracted by the cost of generating that revenue. It tells you how much money a business would have made if it didn’t pay any other expenses such as salary, income taxes, etc. The concept behind gross profit is to measure the profitability of a business when not considering…
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The Price-to-book ratio, or P/B ratio
The Price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company’s book value to its current market price. It is calculated as share price divided by book value per share. Book value is most often calculated as Assets less Liabilities. However, some people conservatively calculate book value as Assets less Intangibles…
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What is Return on Assets? How to calculate it?
(ROA) The Return on Assets is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Return on Assets, also called return on investment, measures how effectively a company has generated profits with its available…