Preferred Shares and Common Shares
Before any Canadian investor puts their hard-earned money into any particular investment, they should be aware of the loads and risks involved in their share class. The uninformed investor will pick their investment without considering the share class they have bought into. This could result in unanticipated investment loss or poor dividend performance. In order to make an informed, financially wise decision in securing your investment you should have a basic understanding of the share classes and their differences.
This share grouping refers to shares that are guaranteed somewhat like bonds, to pay when there are dividends to be had. The share is also secured in the event that the company goes bankrupt. The preferred shares holder is guaranteed first dibs at company assets before the common shareholder. With this safety however, comes a price. The interest on preferred shares is lower than …Continue Reading
Picking The Best Stocks To Buy
Every trader wants to know the best stocks to buy or the next best tip that will give him or her the edge while trading. A good stock picking strategy that will find you the best stocks to buy is also highly dependent on your trading style. For example, a trader that has a longer term trading goal will use a list of criteria that skew towards fundamental analysis.
Shorter term trading will be tuned towards technical analysis
The truth is finding the best stocks to buy requires experience, time, and energy. It is not something that can be learned completely by reading books. With that said, sticking to the following list of general best practices when choosing stocks will aid you in maximizing your chances of picking successful ones.
1. High Liquidity – When trying to find the best stocks to buy, …Continue Reading
PE Ratio – The Price To Earnings Ratio And What It Means
The price to earnings ratio, or PE ratio is one of the most popular financial terms used in stock market discussions.
It is generally assumed that the market value of a share reflects both the past performance and the expected performance of a company. It indicates how a company is perceived by the market, even though the market often misprices stocks. The market price of a share reflects a company’s profitability, growth prospects, risk characteristics, corporate image and liquidity position. Hence valuation ratios are considered to be a comprehensive measure of a company’s performance. The following is an explanation of the PE ratio.
Price to Earnings Ratio, or PE Ratio.
Price To Earnings Ratio
The PE ratio is also referred to as a company’s ‘multiple’ and is readily available in the financial section of newspapers. A PE ratio …Continue Reading