Posts

Showing posts with the label #investorsworkshop2018

TAKE A BATH

Image
To "take a bath " on an investment means to suffer a very large loss. It is a slang for an investor whose shares value have declined substantially over a period of time. One may decide to take a bath on ones entire portfolio or one of the eggs 🥚 in ones basket to stop the loss/losses. Stock-specific news such as company's earnings missing the target of the analysts, unexpected profit warnings etc may result in an investor taking a significant loss. A prolonged bear market may also cause an investor to take a bath on his/her portfolio. Have you ever taken a bath in this market? Investdata Academy

HOT STOCK AND ITS FEATURES

Image
Hot stock is a newly issued stock that rapidly rises in price due to the company's performance or market hype, and whose price continues to rise quickly and consistently over an extended period of time. Its features are as follows: * Has a large price movements in very heavy volume  * Often runs in cycles depending on the investing public's interest in the  industry or its concepts * Are usually quite risky  * Suitable for speculators involved in short-term trading. Investdata Academy

EXPECTED DIVIDEND YIELD (EDY)

Image
Basically there is a difference between expected or forward dividend yield and trailing dividend yield because when one invests in stocks,the past does not necessarily equal the future. Expected dividend yield measures next year's expected dividends as a percentage of a stock's current price, using the last year dividend payout whereas the trailing yield uses the present year dividend as there is no guesswork about trailing yield for the dividend is already out so one can know the yield. The expected or forward yield shows the annual percent return one can expect to earn from dividends if the company keeps up its payouts. To calculate expected dividend yield we use the formula:  EDY = forward annual dividend rate/stock's price * 100 For example, let us assume stock Y has a current price of #650.00 and a forward annual dividend rate of #24.00. Applying these values into the formula we have: EDY = 24/650 *100 = 3.7% Meaning, if one buys this stock now, one wo...