Monthly Archives: May 2009

The Ratio Of Market Cap To Shareholders’ Equity

This ratio means that investors spend $48.42 billion, for $8.4 billion in equity (net assets).
In other words, they are willing to spend $5.76 for every $1 in net assets.

Dividend Yield

This criterion rates the quality of an investment by the investor’s income from distributed dividends.
The overall yield of the investment is not taken into consideration, since this criterion ignores the stock price and changes in it throughout the investment period.

The Dow Jones

The Dow Jones Industrial Average (nickname: the Dow) is the oldest index in the capital market, and the most famous.
This index includes the 30 largest companies in the American capital market.

The S&P 500

The S&P 500 is composed of 500 stocks of large firms in the American capital market.
While the Dow serves as an indicator for the “heaviest” companies on the market, the S&P reflects the entire American economy and capital market.

What are the securities traded in the stock market?

Typically, the stocks that are listed as “securities” in the major stock exchange companies of a particular country are traded in the stock market.
Unlisted securities sell for a low price and seldom do traders bid on them.

What are stock exchange firms?

* NYSE, NASDAQ, Amex, OTCBB, and Pink Sheets are the major US stock exchanges.
* London Stock Exchange, Deutsche Börse, Euronext.are the major European Stock Exchanges.

Price of Stock and the economy of the country ?

* The prices of stocks play an important role in the economy of any country. If the stock market is in the uptrend then it shows an improving economy.
*  If the stock market is in the downtrend then it denotes a declining economy.