stock market basics

Understanding the P/E Ratio and Its Role in Stock Valuation Investing in the stock market requires critical analysis of numerous data variables that could guide prospective investors in deciding which stocks to buy, hold, or sell. An easily intelligible metric that often comes into play during stock analysis is the Price-to-Earnings ratio (P/E ratio). Your …

Understanding the Dividend Discount Model in Stock Valuation Introduction The process of selecting a strong stock portfolio often hinges on being able to effectively value the shares you’re considering. One of the historical models applied to this purpose is the Dividend Discount Model (DDM). The DDM forms the foundation of equity valuation and implies that …

Understanding Blue-Chip Stocks and Their Investment Safety Defining Blue-Chip Stocks The term “blue-chip stocks” originates from poker gaming, where the blue chips hold the highest value. In the financial markets, blue-chip stocks are shares in large, industry-leading, and nationally recognized companies with a history of reliable and robust performance, even in adverse economic conditions. They …

Understanding the Free Float in Stock Valuation In the world of investing and stock market trading, countless terms, concepts, and metrics paint a comprehensive picture of a company’s financial health and potential for growth. One such term that plays a significant role in stock valuation is ‘free float’. Defining ‘Free Float’ Free float, also referred …

Make Money in the Stock Market: An In-Depth Exploration Introduction The allure of the stock market lies in its potential for wealth creation. However, there are risks and volatility associated with this potential. To navigate this landscape successfully, one must understand the various avenues for profit and the strategies that can optimize returns. Let’s delve …

Invest in Stocks Online: An Elaborate Guide for Beginners Introduction The digital transformation of the financial sector has democratized stock market access, allowing individuals worldwide to invest with just a few clicks. While the process has become more streamlined, it’s crucial to navigate the online investing landscape with knowledge and prudence. Let’s delve deeper into …