The standard definition of ‘Price-Earnings Ratio – P/E Ratio’ is the valuation ratio of a company’s current share price compared to its per-share earnings. The P/E ratio is calculated as: Market Value per Share/Earnings per Share (EPS) For example, if a stock is currently trading at $50 a share and earnings over…
Tag: Getting Started
Understanding Dividends: A Key to Stable and Profitable Investing
What are Dividends? Dividends are a critical concept in the investment world, often representing a significant portion of an investor’s return, especially in well-established companies. Here’s a deeper dive into what dividends are, how they work, and why they matter. Understanding Dividends The literal definition of a dividend is a…
How To Select A Stock: My Investment Rules
How To Select A Stock – My Investment Rules: Selecting the right stock for your portfolio can be a daunting task, especially for beginner investors using a buy and hold strategy. However, having a clear set of investment rules can make the process more manageable and increase your chances of…
Getting Started with Buy and Hold Investing
How can I get started? What you Need to Know! The question I am asked the most is, “How can I get started?” The short answer is, “Open a trading account, deposit some money, and start trading.” However, before diving in, there are some crucial steps to take to ensure…