what is the difference between earnings momentum and price momentum strategies ? Thank You?
369328
Hi,\n\nEarning momentum measures the acceleration or deceleration in the growth of operating earnings per share for the latest quarter, the previous three quarters, and an estimate for the next quarter. \n\nRather than actual quarterly earnings figures, 12-month earnings ending with each quarter are used, to eliminate seasonal fluctuations. A curve is fitted to the five earnings figures, and a second derivative is calculated to measure the curvature (acceleration or deceleration) of the curve.\n\nWhile\n\nPrice Momentum is a near-term stock price performance indicator with most performance occurring in the following month to quarter. \n\nPrice Momentum looks for companies with good twelve-month performance that have based or corrected in the last quarter and especially in the last month. \n\nRegards,\n\nRose\n\nhttp://onlineinvestmentsecurities.com
801294
It all relates to the P/E or the Price to Earnings ratio. It measures how much revenue or profit one share earns and compares that to the price you would pay for that one share on that open market.\n\nWhat you or your banker are talking about can be dangerous because you could be paying a lot of money for a share that does not have a lot or any income behind it at all so you would be in danger of losing your investement. This happened a lot in the dot come bust where sahres worth $500 or more were issued and bought for companies that weren't even making $.01 per share.
722283
Short selling is absolutely insane for you if you are asking a question like this.\n\nA "short sale" is basically a minus sign in front of what would happen if you bought a stock. \n\nSo, if you normally buy a share of stock (say for a hundred dollars) and it goes up a dollar, you make a dollar (or a 1% return). And if it goes down a dollar, you lose a dollar (for a -1% return). When you have sold a share short, if the real share goes up a dollar, you lose a dollar, and vice versa.\n\nThat's all there is too it. You lose money if the stock goes up, and make money if it goes down, the opposite of what would happen if you engaged in the normal transaction of purchasing a share.\n\n(There are a number of related things that happen because you have to pay interest on the borrowed share, but you can invest the money that you got from selling, but at the same time you can't invest the money that you used to buy a share... you can ignore all this and interest you pay or receive all comes out in the wash; the market is fair.)\n\nSo, if it's so simple, why would it be insane for you to do? Because, most stocks go up most of the time. \n\nOther investors have invested their money in companies that are out there, and many of those investors both have done more homework than you, and are smarter all around investors anyway. So, If a company has shares traded, that means that other people think that investment is going to go up. The stock market is not flipping coins, companies create value out of thin air by people working hard. So, people work hard and create value and shareholders benefit from that.\n\nSo, since shares are expected to go up, when would you ever bet that they'll go down?\n\nAnswer: NEVER\n\nSo, why would you short sell?\n\nWell, you short sell to get rid of risk in your portfolio from other investments. Here is the easiest example: if you are Henry Ford VI and you inherited a bunch of Ford shares and you are not allowed to sell them, you can keep them, and short sell somebody else's. You still own yours, but if they go up $1, you don't earn the $1 because you also short sold another one which lost a dollar, so no matter what Ford does, you break even. Now you can invest your money sensibly in what you want, instead of all in Ford. All in Ford is risky, and short selling for you actually reduces your risk instead of increasing it.\n\nThat (and similar transactions) are what short selling is for.
130134
Other, I used the prices and volumes to guide me when to sell or exit.  For instant, If my stock going up, have a long run, one day the price is decline like 5 percent, the volume is double or higher from the last session. That is a yellow flag for me, and I have to a decision quickly before it decline further.  I usually sell it with no hestitate when that happen.
1175865
Completely ignore the last answer.  Since you have asked this question I will assume you don't have a ton of experience in the market, or you would know the differences already.  Stay away from a discount broker as it is important you know exactly where you want to put your money at all times and when, if and how much to move at any time.  Most people who have jobs and a life do not devote enough time to research to possibly be able to do this profitably.  Find a good broker with reasonable costs to devise a plan for you.  This person may charge more than a discount guy but if they understand what your goals are they can make up for their cost in the better returns and safer diversification they can provide.
1121681
None of these. Those are both assets.\n\nDividends, common stock, preferred, etc. are more typical of stockholder's equity.
500413
Investors selling short a stock cannot drive down stock prices. The Stock Market cannot be manipulated at will (Like so many Hollywood Movies tell us)\n\nHere are the basics:\nThe Stock is $10.00 and there are 100 stocks.\nThe founder of the Acme Company has 51 stocks and he is not selling.\nTherefore the float is only 49 stocks.\nIf there are 49 investors buying 1 stock each at $10.00 then the price would be exactly $10.00 because the supply and the demand is exactly the same. In real life this scenario is impossible.\n\nIf the number of investors buying is 149 and the number of shares is only 49 there are not enough shares for everybody and that drives prices up.\nAt this moment 100 investors will be without shares and there is nothing we can do about it.\nSo 50 investors decide to PAY MORE for their shares let's say $11.00 and that takes care of half the demand but there is still another 51 investors without shares.\nSo 25 investors decides to sell at $12.00 and and they sell and takes care of the demand one more time but there are still 24 investors willing to buy.\nFor as long as the number of investors buying is bigger than the number of shares the price will go up.\nEventually the demand dries at $20.00\nSo of the current 49 investors (Some paid $10.00 some $11.00 some $12.00 and so on)\nEverybody says well, i have doubled my money already so let's sell at $20.00\nSo now we have 49 investors selling.\nAlas! nobody wants to pay $20.00\nSupply 49\nDemand 0\nSo they lower the price to $15.00 and 9 take the bait.\nSupply 40\nDemand 0\nSo they lower the price to $12.00 and 10 more\nSupply 30\nDemand 0\n\nSee?\nIf Supply is high and demand is low the price goes down\nIf Supply is low and demand is high the price goes up\n\nI hope you understand.\n\nWhen the stock is going down is only because the number of sellers is bigger than the number of buyers.\n\nThe Short Seller already sold their shares so there is nothing more he can do. (Except sell more)
966328
When your goal or exit conditions have already been achieved.  Don't get greedy.\n\nAnd don't wait until investor sentiment turns negative on a stock, that's how people ride investments into the ground.  Come to the table with a plan when you buy ... that you'll sell if it drops 5% or if it gains 10%, or if a year goes by with neither ...
1170586
What you are hoping to capture by buying a calendar spread is the decay of the first expiring option relative to the decay of the second. Read "Options as a Strategic Investment".\n\nA short term option loses its time value faster than a longer term option. So, if the decay on the longer is a penny a day...and the decay on the shorter option is 1/8 a day...you are capturing 11 1/2cents per day and protecting yourself in case of a big market move. Is it a given that you'll make money??? Absolutely not. Every time you think that, think to yourself "there are a million other people out there that have thot about this for at least 25 years...chances are I am not thinking anything original" !
360517
A) In level II quotes  you receive all bids and asking prices  at which participants are willing to buy or sell stock. Level II quotes had some use when nobody had them, maybe help you spot some obvious support prices that every market participant knows already. \n\nB) Yes, if you want to be market maker ?? you can only trade in cents increments. Thus, most liquid stocks you wont get that.  If you have a limit order you will receive the price you stated or better. If you trade thinly stocks, limit is the way to go.  Still, plenty of times, many of my orders have not been filled at the limit price. It is the worse believe me. Yes, you can make a market in some illiquid stocks, making your bid appear a couple of cents above the current one. Unless you are a day trader, no need to worry about it too much. \n\nC) When you make a market order, your buy (sell) will execute at the ask(bid) avalaible at the moment, you will get the stock at the price show on your quote. In fast moving markets, you will get different fills.\n\nSince, you are asking this questions go with limit or market orders whatever you feel comfortable and try not to day-trade. Be careful.
906324
An option strategy is usually implemented by combining one or more option positions and zero or more underlying positions. The option positions used can be long and/or short positions in calls and/or puts at various strikes.\n\nGenerally, options trading strategies can classified to be bullish, bearish or neutral. In the case of neutral strategies, they can be further classified into those that are bullish on volatility and those that are bearish on volatility.\n\nAnd That's My Best Option Answer!
1039908
I think you need to do some basic research on stocks before you jump in.  You can easily lose your 4k if you're not careful.  The things you listed are indexes and markets.  The NYSE is a stock exchange.  It is a private company who has a stock (NYX).  The S&P 500 is an index comprising the 500 largest companies in America.  The NASDAQ is a market and also an index.  The NASDAQ contains "mostly" newer companies and tech companies.\n\nDo your research.
454757
Yes and it does have to do with dividends.  You'll want to exercise early if the stock is about to pay a dividend and the "time value" of the option is less than the dividend.  \n\nWhat does that mean?  Well, a stock's price should drop after a dividend is paid so if the current market price is just slightly above your option's strike price, the option could go from an "in the money" option (meaning if you exercise you'll get some cash) to an "out of the money" option (meaning you'll get nothing).  Still, even this wouldn't mean that you'd definitely want to exercise the option unless the expiry date of the option was also coming up.  I.e. the stock price doesn't have a reasonable chance of recovering from the dividend payment to get back "into the money".
948770
Two ways. One is buy low and sell high. Second is by a sound stock that pays dividends and hold it for a long time.
216428
Also called the earnings yield. What is the percentage yield of earnings per share as a percentage of the price per share.\n\nA stock that trades at $10 and generates $1 in earnings per share has an earnings yield of 10% ($1 / $10)\n\nIt is also the inverse of the more commonly used PE ratio.\n\nAlan Greenspan was a fan of the earnings yield concept in determining if the market was fairly valued. The "Fed Model" or the "Greenspan Model" of market valuation was to compare the earnings yield of the S&P 500 to 10-yr treasury yields. If the earnings yield was higher than the market, then the market was undervalued. If it was lower, the market was overvalued.
727150
Dividend cover shows how many times over the profits could have paid the dividend. \n\ndividend cover = EPS ÷ DPS\n\nThis indicates the ability of the firm to maintain the level of dividend paid out. \n\nThe higher the cover the better the ability to maintain dividends if profits drop. \n\nThis needs to be looked at in the context of how stable a company's earnings are: a low level of dividend cover might be acceptable in a company with very stable profits, but the same level of cover at company with volatile profits would indicate that dividends are at risk. \n\nHope that helps!
573605
This is the most important factor as per me in fundamental analysis of a stock. This coupled with a few of the related ratios should give you a fair idea about the worth of a stock.\n\nEarning per share as the name indicates is the 'per share earning' of a company in a reported period. For all practical purposes it is advised to consider the last annual as well as the last quarter earning. \n\nIf a company has earned a profit of say 10000 US$ in last 3 months and US$ 25000 in last 12 months and the company has 10000 equity shares then, we arrive at the following earning per share values. \n\nAnnual EPS= US$ 25000/10000 = US$ 2.5 Earned per share in last year. Quarterly EPS = US$10000/ 10000 = US$ 1 Earned per share in last quarter. Annualized quarterly EPS = US$1 X 4 = US$ 4. \n\nNow this can be used to analyze a company in the following ways: \n\n1. Compare last 5 years EPS. \n2. Look for a growth pattern. \n3. If the EPS is fluctuating from +ve to -ve and vice versa, it may not be a good place to invest. \n4. If the company operates in a cyclical industry, the annualized quarterly EPS may not be compared with the regular EPS. \n5. Compare the growth rate with that of the industry. \n6. Compare the growth rate with that of market and industry indices. \n\nNow doing all these comparisons you should be in a place to adjudge the company as growth oriented or not. \n\nConsiderations: If the company has recently issued new shares, split shares, merged other companies etc. you may need to factor in those factors accordingly before you compare this with the previous figures\n\n\n\npls check it out:\nhttp://www.pakistaneconomist.com/issue2001/issue40/f&m3.htm