Stock Research Pro

A recession and stock market performance are, of course, closely related. As we all know, a stock represents company ownership, so the stock market reflects the level of confidence investors have in the future earnings of companies.
Read the rest of this entry »

Institutional investing refers to a non-bank person or organization (mutual funds, pension plans, insurance companies, etc.) that trades securities in large share quantities. When these organizations purchase a particular stock, the market will often have favorable expectations for that stock.
Read the rest of this entry »

A stop loss order (or “stop market order”) is designed to limit an investor’s loss on a stock or other security position by instructing the broker to sell when it reaches a certain price.

In executing a the order, investors ensure they get of a stock at a pre-defined loss before the stock price falls any further (set the stop loss order for 10% below the price and you limit your loss on that order to 10%).
Read the rest of this entry »

Online stock brokers enable you to buy or sell financial securities or currencies through an Internet-based trading system. The use of online brokers has grown enormously in recent years as high-speed Internet connections have become more widely-available and affordable. With an online broker, you have the benefit of working from your home instead of visiting an office or having to track down your stock broker over the phone.
Read the rest of this entry »

Company earnings are the profits it generates. If you subtract the company’s costs from the revenue it generated over a specified period of time, you have its earnings. Stock evaluation should always include the examination of company earnings. Earnings are viewed as a significant component in analyzing the health of a given company and the future earnings expectations of the company play a major role in the market’s setting the price of the stock.
Read the rest of this entry »

High dividend stocks can be wise a investment choice, as you may enjoy price appreciation along with the income offered by the dividend or you can simply re-invest the dividend. In fact, from 1935 to 2007, over 40% of the total return from the S&P 500 came from reinvested dividends.
Read the rest of this entry »

The random walk theory is a financial hypothesis that says that stock market prices evolve and change by a “random walk”, making stock prices unpredictable. According to the theory, because stock prices are on this unpredictable path, any given stock’s price is as likely to go up in the future as it is to go down.
Read the rest of this entry »

“The largest profits regularly result from buying stocks at low P/S ratios.”
- Ken Fisher, author of “Super Stocks”

The price-to-sales ratio (P/S) is a fundamental metric that calculates the value the market puts on each dollar of a company’s sales.

As any savvy investor knows, success comes from picking the right company at the right price. The price/sales ratio is a tool that can help an investor determine the right price of a stock- answering the question of whether the stock may be currently over or under valued.
Read the rest of this entry »

The direction of interest rates is very important to stock market investors. In fact, the impact of interest rates is so important to investors that the market reacts to the direction it believes interest rates are going long before the Fed implements any changes. But while interest rates do affect the stock market significantly, it is not a direct affect.
Read the rest of this entry »

Zero coupon bonds (also called zeros or discount bonds) are bonds investors purchase at a price lower than face value. The face value is paid to the investor at maturity. Zero coupon bonds do not make interest payments (coupons). Instead, investors earn the compounded which is paid at maturity along with the difference between the discounted price and its redemption (par) value.
Read the rest of this entry »