Securities Market Metrics. Exchanges vs. Indices Exchanges are where the transaction takes place Index is a measurement of performance Sometimes an Index.

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Presentation transcript:

Securities Market Metrics

Exchanges vs. Indices Exchanges are where the transaction takes place Index is a measurement of performance Sometimes an Index measures performance of stocks on a specific Exchange Don’t get confused about this…

Popular Exchanges NYSE Amex Nasdaq Philly Pacific London Tokyo Hong Kong Other worldwide exchanges After-hours / Electronic exchanges

Indices DJA S&P NYSE AMEX NASDAQ Wilshire Russell

Dow Jones Industrial (Reliability? Some say yes, some say no….) Transportation Utility Composite (three above)

Standard and Poor’s Industrial (400) Transportation (20) Utility (40) Financial (40) Composite (500) Midcap (400) Smallcap (600) Composite 1500 Comparison with Dow (Index vs. Average, Breadth, Accuracy…some argue Dow close enough)

Exchange-Related Indices NYSE Indices Amex Nasdaq

Wilshire Indices Attempt to reflect the total market value (captures approx. 99% of total market value) A point is worth $1Billion Wilshire reading of 10,000 = $10 Trillion in total value

Russell 2000 Measure of small stocks’ performance

Individual Stock Data Wall Street Journal Barrons Investor’s Business Daily Multiple On-line Sources Hi/Lo, Close, Last, Bid/Ask, P/E, Div, Yield, Volume, Shares Outstanding

Annual Shareholder Reports Reports include key business fundamentals and financial data Operating detail Financial discussion

SEC Filings Financial Statements Other documents Key source of information for publicly traded corporations Edgar Database

Analyst Reports Upgrades / downgrades Buy / Strong Buy / Hold When does buy mean sell? Earnings Expectations (Meet/Beat/Die)

Information On Individual Stocks On-line sources Value-line-valueline \ education \howto Morningstar—Stock selector S&P Barron’s WSJ (Zack’s) Bloomberg

How much is a stock worth? When is a stock overvalued? When is the MARKET overvalued? Earnings multiples… Bulls vs. Bears When should you care?