peter jhonson's Articles in Stock Market

  • Equity trading is buying and selling of company stock shares
    Price to sales ratio is useful to value any company. Price to Sales ratio for a company can be calculated by dividing the market capitalization of a company by its total revenue for the last four quarters. Price to sales ratio is more reliable measure because revenue for a company is difficult to manipulate. Firms with low profit margins and high P/S ratios are overvalued and those with high profit margins and low P/S ratios are undervalued. Investors should be able to identify them correctly and make investment decisions.
  • Equity in its simplest form is ownership in a company
    A share can only be traded in stock market only if it is listed on a stock exchange. A stock exchange is an entity which facilitates brokers and traders to trade stocks. A broker is a regulated and registered member of the stock exchange which buys and sells securities on behalf of the traders and investors.


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