What are following points related to shares? How they are useful in picking up/investing in new shares?
P/E Ratio
EPS
Face Value
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What are following points related to shares? How they are useful in picking up/investing in new shares?
P/E Ratio
EPS
Face Value
PE ratio is Price/EPS i.e. the current stock price divided by the EPS.Quote:
Originally Posted by Sumant
EPS is Earnings per share. The total earnings of the company divided by the numbers of shares in equity.Quote:
EPS
Market cap is price multiplied by the number of equity shares.
As above 3 depend on the earnings of the company either directly or indirectly, they vary from quarter to quarter. But, face value is not a variable, unless a split happens. Face value is the nominal price printed on the face of the stock. It does not mean much by itself, nor is it the assured value of the stock as some people mistake it to be.Quote:
Face Value
What is Share? - http://in.rediff.com/getahead/2004/nov/25shares.htm
Things to know to buy Shares - http://in.rediff.com/getahead/2005/apr/26share.htm
What is EPS and PE? - http://in.rediff.com/getahead/2005/feb/08stock.htm
Market is bulliesh mean? - http://in.rediff.com/getahead/2004/dec/15expert.htm
Why to buy shares? - http://www.rediff.com/getahead/2004/dec/01shares.htm
When is right time to sell shares? - http://specials.rediff.com/getahead/...v/05stocks.htm
Why the Sensex rises? - http://inhome.rediff.com/getahead/2004/dec/28sensex.htm
What is BSE? - http://www.rediff.com/getahead/2006/sep/13sensex.htm
Should I buy shares now? - http://in.rediff.com/getahead/2004/dec/23sensex.htm
Is Stock worth to buy? - http://in.rediff.com/getahead/2005/mar/14profit.htm
How to pick the right shares? - http://in.rediff.com/getahead/2005/aug/04bull.htm
Source - rediff.com
Eps stands for “ earning per share”, means profit after tax attributable to a share, For example if share 'X' has profit after tax of Rs.500 crores and total no of shares of 'X' is 10 crore then eps is 50.
PE stands for price earning ratio it is the relation between EPS and market price of share. For example if shares 'X' @ 200 on nse and its eps is 50 as calculated above then its pe is 200/50 = 4.
What is ‘Application Supported by Blocked Amount’(ASBA)?
Application Supported by Blocked Amount(ASBA) is a facility wherein the money you intend to invest in an NFO stays in your bank account and consequently earns you the interest. The money leaves your account only when units are allocated to you. While in your account, this amount stays blocked ensuring that you cannot use it for any other purpose.Quote:
Originally Posted by Ice
ASBA (Application Supported by Blocked Amounts) is a process developed by the Securities and Exchange Board Of India (SEBI) for applying to IPO. In ASBA, an IPO applicant's account doesn't get debited until shares are alloted to him/her.
What is Call - Put in option trading?
CALL : If you buy a CALL ( or you sell a PUT) of particular script means you are bullish on script. If scripts moves up you make money.
PUT : If you buy a PUT ( or you sell a CALL) of a particular script means you are bearish on script. If script goes down you make money.
Buy CALL / PUT : loss limited & profit unlimited.
Sell CALL / PUT : profit limited & loss unlimited.
Hope this clears your doubts.
What is Margin trading?