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Udemy - Advanced - Mohsen - No.02 - Fundamental - (3) - Coggle Diagram

- - - - Growth Company
        
        Usually
        
        Healthcare 💊
        
        Technology :robot_face:
        
        The stock of this kind of company has wilder moves.
        
        High P/E :arrow_double_up:
        
        Low Dividend :broken_heart:
      - Low P/E :arrow_double_down:
        
        High Dividend :<3:
- - - - Earnings Per Share :explode:
        
        ≪ EPS ≫
        
        Price Per Earning (P/E)
        
        Return On Equity (ROE)
        
        Current EPS
        
        EPS next year
        
        If the next year come, the earnigns drop, then the price will also drop.
        
        🟰 Net Income ➗ Shareholder's Equity
        
        Represents how much money the company makes for each dollar of equity.
        
        🟰 Market Price ➗ EPS
        
        For example, if it's 30$
        
        It means that I'm paying 30$ for each 1$ Earnings Per share it makes.
      - 🟰 Market Price ➗ Book Per Share
        
        Market Price ==
        
        Best Bid Price
        
        Best Ask Price
    - - If BVPS increase :arrow_up_small:
        
        The stock is more valuable :dollar:.
        
        The stock price SHOULD increase :arrow_up_small:.
  - - - 🟰 Shares outstanding ✖️ Current stock price
  - - - paid-in capital
        
        is the amount of capital "paid in" by investors during common or preferred stock issuances,
      - retained earnigns
        
        🟰Profits :heavy_minus_sign: dividends
- - - - E.g. Look at the EPS for several years, and inspect the trend.
    - - Compare the fundamental ratios against a company's peers within the same industry.
      - Dividend Discount Model (DDM) :<3:
        
        If the company gives no dividends, then this method cannot be use.
        
        Used to value a stock.
        
        If a company cut dividents, you short it.
        
        Precondition, it had been gaving constant dividends.
- - - - This is bad indicator :warning:
        
        price plummeting :arrow_lower_right:
        
        insiders selling :silhouette:
        
        whole section about this on finviz
  - - - Regular Dividends
        
        Given periodically
        
        Special Dividends
- - - - 是 500 家大型公司的加权平均数
  - - - Is a basket 🧺of assets like an index fund.
      - SPY :spider:
        
        Is an ETF that tracks S&P 500.
        
        Is the ≪ most traded stock ≫ in the world.
        
        XLF
        
        Is an ETF that tracks financial companies.
        
        XLE
        
        Energy
      - VXX
        
        Is an ETF that tracks the volativity of S&P 500.
- - - - Is the process of
        
        Supplying currency
        
        Setting interest rates
        
        This is done by the central bank. :arrow_left:
    - - 在美国比较特殊
        
        美国的央行是一个私企，名为 The FED，创立于 1910 年
        
        1913 年 "The Federal Reserve Act" 被签订了
        
        ≪ The FED ≫ is composed of
        
        12 regional banks
        
        2 boards
        
        Board of Governors (7 people)
        
        FOMC (7 people)
        
        Board of Governors
        
        7 members appointed by the president
        
        Responsible for
        
        setting interest rate
        
        reserve requirements by banks
        
        FOMC
        
        7 members of the "Board of Governors" :arrow_upper_right:
        
        The president of the Fed of New York 🗽
        
        4 other reginonal baks :world_map:
        
        8 Meetings every year
        
        Responsible for
        
        deciding on the direction :motorway: of the monetary policy
        
        open market operations (buy/sell government securities)
        
        Set up rules for banks
        
        If the Fed buys bonds in the open market, it increases the money supply in the economy by swapping out bonds in exchange for cash to the general public.
        Conversely, if the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.
        
        ≪ Federal Open Market Committee ≫
        
        Money supply & inflation
        
        The more the money is supplied, the more the inflation. :explode:
        
        Interest & stock price
        
        Interest rate :arrow_up:, then stock prices SHOULD down :arrow_down:
        
        加息的时候说明经济不好。
    - - Increase Taxes :arrow_up:
        
        Less circulation of money 💦
        
        Economy slowing down :arrow_down:
        
        Increase Taxes :arrow_down:
        
        More circulation of money 💦
        
        Economy doing better :arrow_up:
        
        Taxes are used by governments to pay EVERYTHING.