Table of Contents
How do you calculate the profit of a stock?
Multiply the sale price per share by the number of shares sold to find your total proceeds from the sale. Subtract the cost basis from the total proceeds to calculate your stock profit. Note that if the cost basis is greater than the total proceeds from selling the stock, your answer will be a negative number.
How to measure your shareholder value
- Determine the company’s earnings per share.
- Add the company’s stock price to its EPS to determine your shareholder value on a per-share basis.
- Multiply the per-share shareholder value by the number of shares in the company you own.
What makes the prices of stocks go up and down?
Stock prices are driven by a variety of factors, but ultimately the price at any given moment is due to the supply and demand at that point in time in the market. Fundamental factors drive stock prices based on a company’s earnings and profitability from producing and selling goods and services.
What is BV per share?
Book value per share (BVPS) is the ratio of equity available to common shareholders divided by the number of outstanding shares. This figure represents the minimum value of a company’s equity and measures the book value of a firm on a per-share basis.
Should you buy a stock at a 52-week high or low?
You may want to buy a stock at a 52-week high because if it’s performing that well, it must be doing something right. You’re more likely to find a winning stock on the 52-week high list than the 52-week low list. Price is only one factor to consider when buying stock.
Are 52-week low stocks a bargain or a gamble?
The company you randomly pick off the 52-week low list may be a great bargain—beaten up by an unappreciative market or caught in some regulatory squeeze that was about to end. As a gamble, you could argue that a “bottomed out” company is more likely to go up and that a company at the top cannot continue its upward momentum.
What is the probability that 2 chips are bad?
(Example for one of the terms: to find the probability that exactly 2 chips are bad, keep in mind that any 2 of the 4 chips can be bad, and so multiplication by (4 choose 2) = 6 is needed.) Of course, it is much easier to just find 1 – P (no chips are bad) = 1 – (0.98)^4 than to go through all the calculations for 1, 2, 3, and 4 bad chips.