How do people make money from stock? Please explain this term?

Question

I went to this link >> http://finance.yahoo.com/q?s=NYX

Can someone help me explain these terms on the site?

Last Trade:
P/E
Open
BID
Volume
Annual EPS Est (Dec-07) :
Quarterly EPS Est (Mar-07) :
Mean Recommendation*:
PEG Ratio (5 yr expected):

Answer 1

There are a lot of resources on the web which can help teach you about how stock investing works.
1. If you are interested in really learning, then GREAT! Welcome to the ~5% of the population that invests first with their time in gaining knowledge and then with their money.
2. If you do not want to spend a large amount of time (a) learning how investing works and (b) monitoring your investments, then the best advice I have for you is to find a reputable stock advisor. If you need help locating one, give me an e-mail (through my profile) and I can point you in the right direction.

Anyway, to give some real basics, people make money from stocks from
a) Appreciation
b) Dividends
But, a lot of other people make money on the stock market by utilizing options (aka derivatives). Most people that really make a large amount of money either (a) use options or (b) get lucky.

To define the terms you asked about:
Last Trade - is the time and price that the stock (or option) last traded at. When the market is open, if a stock is heavily traded the time will be approximately right now, and the price gives you a good valuation of the stock. If the market is not open, or the last trade time is a long time (as in hours, not years), the last price might not be as useful. The bid and ask are likely more important, more on those in a minute.

P/E - is the Price per Earnings ratio. In other words, how much does the stock cost divided by how much the company makes in earnings.

Open - the market opens at 9:30 most days. The market remains open until 4pm. (NYSE). A particular stock price will be said to open at a given price. That is the price that the stock first traded at when the market opened.

Bid - is the amount someone is willing to buy a stock for
Ask - is the amount someone is willing to sell a stock for
The bid and the ask prices are usually close to each other and close to the last trade price, but they don't have to be. They come from people who have entered limit orders, that is orders that say they are willing to buy or sell only at a certain price. If you enter a market order, then you will buy at the ask price and sell at the bid price.

Volume - number of shares traded, usually on a given day.

Annual EPS Est(Dec-07) - EPS stands for earnings per share. So, this means the amount of earning that are estimated for the year prior to December of 07, in other words Jan '07 to Dec '07.

Quarterly EPS - same as previous but for the last 3 months, therefore Jan-March '07

Mean Recommendation - the average recommendation of the analysts who answered. It comes from the fact that different analysts will rate the same stock differently. This rating takes all of those recommendations (buy, sell, hold, etc) and assigns an average rating to the stock.

PEG Ratio (5 yr expected) - A stock's P/E ratio divided by its year-over-year earnings growth rate. What the expectation is in 5 years, based on current data.


I hope this helps.

Answer 2

Last Trade --- this is the last price the stock traded at
P/E --- price to earning ratio, one way to compare how much money a company makes to its stock price, lower is better
Open --- the price of the stock when the stock market opened
BID --- how much someone is willing to pay for the stock now
Volume --- how many shares have traded today
Annual EPS Est (Dec-07) --- estimated profits per share for this full year
Quarterly EPS Est (Mar-07) --- estimated profits per share for this quarter
Mean Recommendation --- the average opinion of experts following this stock, if you should buy or sell it
PEG Ratio (5 yr expected) --- price earnings growth, is the company growing quickly which might justify a higher price for the stock

Answer 3

1

Answer 4

I can't. But there is one thing I do know:

Investing in the stock market while essentially a more socially acceptable form of gambling, it is still gambling.

Only a few people truly make it and regardless of the laws and regulations, those who do is because of insider knowledge.

Answer 5

You buy at $1.00 and sell at $2.00

Answer 6

you have everything you need to know in this financial dictionary which is remarkable : http://www.duke.edu/~charvey/Classes/wpg/glossary.htm
good luck

Answer 7

http://www.google.com/search?q=how+to+play+the+stock+market&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7DKUS