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Stock parameter is the factors that eventually control the stock price at the stock exchange. A better understanding of these parameters will help you to trade in stocks. Here we are presenting definitions of some of the most important parameters.
Face Value – Face value of a stock represents the nominal value that the issuer of the stock decided for that stock.
Book Value - Book Value of stock is determined by dividing the net worth of the company divided by the number of shares outstanding. The net worth of the company is total asset of the company minus the liabilities.
Market Price – Market price indicates the last traded price at a particular stock exchange where the stock is listed at a given day.
Market Capitalization – market capitalization of company is determined by multiplying the market price of the stock with the total number of issued and outstanding stock in the market.
Volume – Volume of stock is average of total traded stocks at the exchange over a period of time.
52 weeks High/Lows – The highest and lowest point of the price of a stock at the exchange in the immediately preceding 52 weeks.
Price to 52 Week High/Lows - It is determined by dividing the current market price of the stock by 52 Week High/Low. This value is the indicator of the fact how the stock has performed in the period of 52 weeks.
Earning per share - EPS is determined by dividing the net profit of the company, the aggregate net profit of the last four quarters, by fully diluted equity capital.
Price to Earning Ratio (P/E) – P/E ratio is determined by dividing the closing price of a stock with the Earning per Share or EPS of the stock.
Beta – Beta shows the sensitivity of stock to the market. It indicates how much the scrip moves at a unit change in the market. The Beta for a stock can be negative or positive. When the Beta for a stock is negative it means that the share moves in the opposite direction that of the market.
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