Time Value of Money

Understanding Wall Street
Chapter 1 What is a share of clove pink?
* If you need more capital to run a business, split the company into smaller pieces and give investors ownership (venture capitalists)
* Set up a corporation for limited liability ( shareowners are solely liable to the extent of what they invest)
* 400,000 shares outstanding. 250,000/400,000 could be used to give ownership. rest shares can be utilized later
* Initial Public whirl (IPO) When a company goes public and offers shares to its new investors
* Company fails to retroert debt default
* network=260,000 | 250,000 shares outstanding = Each stockholder would be entitled to $1.04 EPS
* If company decides to give earnings to its stockholders, this is called dividends
* Retained Earnings: Money after dividends are paid out to stockholders
* B/S: What company owes, value of re chief(prenominal)ing amount (stockholders equity)
* description of Income: Profits earned
* Stock price revolves around three main functions: Companys earnings outlook, dividend prospects & financial condition
* P/E Ratio: cost of the stock / EPS. A amply P/E is an indication that investors believe the company pass on grow.



Big factor: Interest Rates
* Dividend Yield/Yield: yearly % return a dividend provides to the investor | Annual cash Dividend Per Share / Price of the stock
Chapter 3 Analyzing Your Company
* Know the COMPANY, read 10k/10Q. Read I.S. / B.S. / Statement of Cash Flows
* Income Statement: Presents the companys business results for the year. It displays the sales, costs, earnings over a 12-mo period
* Balance Sheet: Presents companys financial condition by listing what the company owns, what the company owes, and stockholder equity (difference among the assets and the liabiltiies)
* Statement of Cash Flows: Bridge between the Income Statement and Balance Sheet. Explains how the company financed its growth (where the money came from / where...If you extremity to get a full essay, order it on our website: Orderessay



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