Lesson 21
Should Jack sell, hold or trade? Why?
Jack should hold onto his comic book, since now that the author and artist is famous, books will rapidly change hands, each person trying to make a profit off their own spendings, the price steadily rising each day. After a while, Jack can make more than just 20 or 40 dollars off his book.
1. What is a stock? Capital raised by a business or corporation through the issue and subscription of shares
2. What is the price-to-earnings ratio? At $43 a share, and earnings of $1.95 per share for the last 12 months, the P/E ratio would be 22.05 ($43/$1.95).
3. Identify some factors that might affect the price of a stock. Competition, lack of funds, bankruptcy.
How did each stock perform? -BAC, +GE, -DAL, +-VALE, -LUV
Which stock closed at the highest and lowest? Highest: DAL. Lowest: LUV.
Which stock had the greatest rate of return? GE
Jack should hold onto his comic book, since now that the author and artist is famous, books will rapidly change hands, each person trying to make a profit off their own spendings, the price steadily rising each day. After a while, Jack can make more than just 20 or 40 dollars off his book.
1. What is a stock? Capital raised by a business or corporation through the issue and subscription of shares
2. What is the price-to-earnings ratio? At $43 a share, and earnings of $1.95 per share for the last 12 months, the P/E ratio would be 22.05 ($43/$1.95).
3. Identify some factors that might affect the price of a stock. Competition, lack of funds, bankruptcy.
How did each stock perform? -BAC, +GE, -DAL, +-VALE, -LUV
Which stock closed at the highest and lowest? Highest: DAL. Lowest: LUV.
Which stock had the greatest rate of return? GE