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Essentials You Need to Know Before Investing in Stocks

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  COMPANY FUNDAMENTALs information such as  PROFITABILITY, REVENUE, ASSETS, LIABILITIES, DEBT, AND GROWTH POTENTIAL are considered fundamentals COMPANY FINANCIALs CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES DEBT RATIO = TOTAL LIABILITIES / TOTAL ASSETS RETURN ON ASSETS RATIO = NET INCOME / TOTAL ASSETS RETURN ON EQUITY RATIO = NET INCOME / SHAREHOLDER’S EQUITY DIVIDEND YIELD RATIO = DIVIDEND PER SHARE / SHARE PRICE EPS = EARNINGS PER SHARE RATIO = NET EARNINGS / TOTAL SHARES OUTSTANDING PE = PRICE-EARNINGS RATIO = SHARE PRICE / EARNINGS PER SHARE COMPANY PAYOUTs DIVIDEND, BONUS, RIGHTS A payout is the share of profits that a listed company will pay its shareholders. If the payout set out in the company’s shareholder remuneration policy is 50%, the company will distribute half of its net profits among its shareholders.  A dividend is cash paid to shareholders for their share in the company's profits.  A share buyback and the subsequent cancellation ...