Hi Folks,
I will define further stock market terminology here. Before we head off in quest of our pot-o-gold
(and please believe me it is out there, in penny stock land) we'll touch on the buzz words of trading.
*What is EBIDTA?- is a company's earnings before interest, taxes and amortization write downs. In effect, this is a company's gross earnings.
*What is Net Income Applicable to Common Shares?-this is the bottom line profit that a company reports that belongs to the common shareholders (Owners)
*Define Diluted Earnings Per Share-is a company's earnings per share calculated using fully diluted shares outstanding, including convertible bonds and stock options. In effect, a "worst case scenario".
*What is Current Ratio?-a financial ratio that measures whether or not a firm has enough resources to pay it's debt, over the next 12 months. In effect for every dollar of debt, what ratio can their assets cover.
*Define Book Value-somewhat similar to earnings per share, book value relates to stockholder equity to the number of outstanding shares, giving the shares a raw value.
*What is a Short Sale?- this is a technique used by investors to take advantage of a stocks falling price. These shares are borrowed from a broker, with the intent of selling and hopefully to be bought back later, at a lower price.
*What is Float- these shares represent freely tradeable shares. Those shares that are not held by insiders or institutions. The smaller the float, the more volatile the stock can be.
Ok...I hope that defining these basic terms has helped you out. As I mentioned earlier, penny stock advice is free and easy to find. But, you'll need to filter through some of the bad information and never fall in love with a stock. Take your profits.
Please research this stock market guru. I truly hope you join, as James Connelly adds 500 millionaires to his team. Trade beside me! We will buy these company's
BEFORE they explode to the upside, then lock in our profits!
The Penny Stock Prophet
