Wealth Building, Retire Early, Personel Money, Financial Planning, Saving Tips
Debt To Equity Ratio (D/E) is just another commonly used ratio to analyze a stock fundamentally. Debt to equity ratio give investor a glance on degree or how much money that management has been borrowed to grow its company. In words, debt to equity ratio refer to total liabilities divided by shareholder equity.
Price to book value is just another ratio that used to evaluate a company fundamentally. Investor use price to book value to evaluate whether a company is undervalue or overvalue as this is the main purpose for fundamental investing. Here is the formula for calculating P/BV.
Pattern Day Trader name is given to trader who do more than 3 day trades in 5 business days in a single account. This is a rule set by US Securities and Exchange Commission.
So what is so special about this Pattern Day Trader? If you you are categorize in Pattern Day Trader,
IPO stand for Initial Public Offering. It is shares that offer to public before listing it on the exchange. If you apply for IPO means you are on the first line to get the shares if successful chosen to be shareholder. You get it before the stock list on the exchange (is successful). Therefore, you have some privileges over the others who buy it in the open market through exchange.
Gross profit margin is my another favorite figure that I look for before I invest in a company. Gross profit can be obtained by subtracting raw material or cost of sales from revenue. From the gross profit we divide it with revenue, then we get gross profit margin.
Net tangible assets (NTA) means total assets of a company after minus the liabilities and intangible assets (patents and goodwill). In others words, net tangible assets is what company physically owned and can be sold.
Price to Earnings Ratio or PER is a figure used to identify whether a stock price highly priced or lowly valued. Price to Earning Ratio commonly compare among several companies in same industry. From that, we will know that whether the price of a particular company is highly priced or lowly priced.
