One of the easiest and simplest metrics that investors use to screen for, as well as value, stocks is the price-to-earnings ratio, better known as a stock’s price-to-earnings (P/E). Of course, on its face, a P/E is nothing more than a snapshot in time, but what if I told you it was far more complicated than that?There are several P/Es […]
Think of dozens of different derivatives … of the same company.Suppose Boeing has an exciting airline project that is riskier than most airline projects. One way to do this is to create different classes of shares that cover different risk profiles. There will be Boeing A Shares, Boeing B Shares and a Boeing R Share for higher-risk projects. Those will likely trade […]
Benchmarks ended lower on Wednesday following disappointing corporate results and economic data. AT&T, Amgen and Biogen posted disappointing corporate results. Boeing and Gilead’s better-than-expected quarterly earnings failed to restrict the day’s losses. Decline in new home sales data also added to the bearish sentiment.For a look at the issues currently facing the markets, make sure to read today’s Ahead […]
