Stocks Flashcards
What determines the price of stocks
Market perception and investor confidence. After this, demand can determine price of stocks
Thus a favorable research report with high projected earnings can make market sit up and take notice of the company
Confidence is usually based on the pas performance.
Price/earnings ratio
What are whisper numbers.
The expected earnings of a company before the financial statements are posted.
The stock price can down if the company is lower than its whisper numbers because people lose some confidence in the co.
Good strategic management in being a financial analyst.
Revise estimates low and go higher bc it makes it seem that some new event or improvement has arisen. This increasing market perception
Events that change perception or confidence
Earnings announcement
Revising estimates
Company warnings- they mean they will lose if they say it
Insider trading
Ripple effect of other parts industry
Changes in inventory
Technology and expansion
Good signs to health and stock price
Low interest rate (fed can adjust this)
Insider trading-company and employees buying its own stock
What is happening in the market around them??
decreasing inventory COULD meaning that they or turning over inventory fast (could also be Bad due to manufacuring problems)
Technology and new products. Expansion is a good sign
