Choosing a stock while taking an financial commitment is dependent upon your financial goals. Corporations issue various kinds of stocks, the essential two types being common stock and preferred stock. A different type of classification that is commonly used would be to classify stocks as growth, value or blue chip stocks, and the like. It…
Tag: value
Don’t Buy Stocks based on P/E Ratio alone
I use the P/E ratio as a secondary indicator for buying and selling stocks but I do not use the ratio in the same a manner as many value investors teach. I’ll explain the difference in my methodology for using the P/E ratio to your advantage. Many value investors will pass on a growth stock…
Forces that Move Stock Prices
One of the largest forces that affect stock prices are inflation, interest rates, bonds, commodities and currencies. Sometimes the stock market suddenly reverses itself followed by printed explanations phrased to suggest that the author’s keen observation allowed him to predict the market turn. Such circumstances leave investors somewhat awed and amazed at the infinite amount…