Stock Market 101 Quotes

“To calculate the market capitalization of a company, multiply the current market price of a stock by the number of outstanding shares. The number of outstanding shares refers to the number of shares that have been sold to the public.”
― Michele Cagan, Stock Market 101: From Bull and Bear Markets to Dividends, Shares, and Margins—Your Essential Guide to the Stock Market

“You can identify value stocks by their relatively low price ratios (which include the price-to-earnings ratio (P/E ratio), price-to-sales ratio, and price-to-book value ratio), lower-than-average growth rates, and PEG (price-to-earnings growth) less than 1, which means that the company’s growth potential isn’t yet reflected in its price. Examples of value stocks (at the time of this writing) include American Express (AXP), AT&T (T), and Tyson Foods (TSN). Keep in mind that once these stocks catch fire they may lose their value status as demand drives prices up.”
― Michele Cagan, Stock Market 101: From Bull and Bear Markets to Dividends, Shares, and Margins—Your Essential Guide to the Stock Market

“A good rule of thumb is to look for solid companies that are trading at no more than three times their book value per share. An example of good value (at least as of July 2016) is AT&T, with a price-to-book value ratio of 2.10.”
― Michele Cagan, Stock Market 101: From Bull and Bear Markets to Dividends, Shares, and Margins—Your Essential Guide to the Stock Market

“As you might expect, different sectors flourish whiles others languish in the same economic circumstances. For example, when the economy slows down, the technology sector may decline as the utilities sector gains ground.”
― Michele Cagan, Stock Market 101: From Bull and Bear Markets to Dividends, Shares, and Margins—Your Essential Guide to the Stock Market

“And if that virus isn’t stopped, it can take down the whole market.”
― Michele Cagan, Stock Market 101: From Bull and Bear Markets to Dividends, Shares, and Margins—Your Essential Guide to the Stock Market