Common stock market concept Formula 1 used to study securities investment with cainiao

After four years of college, I was fortunate to have a classmate who liked finance and gradually driven me. So I learned some financial things and started reading them, although a small investment cost a lot, I learned a lot. Thank you, Mr. Zhang. I remember that when I was selecting a public course, I was very popular with my teachers and I had two different investment styles. I ran to attend their classes every night. Many concepts may not be understood at the time, so I was confused. Here, Dr. Yan's book is really good for those of us who learn electronics, not finance, but want to quickly understand the stock market, below are some simple concepts and formulas that can be used for further study.

1,
Earnings per share: the ratio of the company's net profit to the number of common shares that have been issued after the dividend of the preferred share.

Formula: earnings per share =
(Net profit-preferred share dividend )/
Number of common shares.

So this preferred stock? Common stock? Do you have any special meanings?
The preferred stock is relative to the common stock. It mainly refers to the right to distribute profits and residual property, which prevails over ordinary shares. The two characteristics of the preferred stock are: first, the preferred stock usually specifies the dividend yield in advance, and second, the preferred stock has a small range of rights. I will not explain it much here, as long as you know about it, as long as you know how to calculate earnings per share.

2. Net assets per share: the ratio of the company's net assets to the number of ordinary shares that have been issued, also known as shareholder equity.

Formula: net assets per share =
Number of net assets/common shares.

What is the concept of net assets? Net Assets =
Assets-liabilities are the money owned by the enterprise-
It is better to understand the money owed to others. So the rest is the net assets. For example, I have 10 yuan, but I owe you 5 yuan, so I still have 5 yuan of net assets.

3,
Returns on net assets: the ratio of the company's net profit to the total capital (total shareholder equity), indicating the company's ability to use all capital to gain a net profit.

Formula: returns on net assets =
Net profit/total shareholder equity * 100%.

In fact, the total capital (total shareholder equity) Here is the same as the above net assets.

4,
Price-to-earnings ratio: the ratio of the market price per share to the net profit after tax, also known as the cost-to-profit ratio.

Calculation formula: price-earnings ratio =
Market price per share/profit per share.

The market price per share is the stock price at that time. You can find it on the Internet. Earnings per share is what we have mentioned above.

This is what we often hear about pe indicators. "P/E ratio" indicates the price-to-earnings ratio; "price per share" indicates the share price per share; "earnings"
"Per share" indicates earnings per share. Generally, we can simply think that a stock with a high price-to-earnings ratio has a higher degree of divergence between its price and value. That is to say, the lower the price-to-earnings ratio, the more valuable the stock has to invest.

5,
Net Price: The ratio of the market price per share to the net assets per share.

Formula: market clearance =
Market price per share/net assets per share.

The general market price is transferred in circulation several times of the net assets per share, indicating the premium. The nice thing to say is that investors are optimistic about the prospect of the stock, the price is overestimated. Of course, the market price also falls below the net assets per share, which does not indicate that the stock must be worth investing.

Well, these are the simplest concepts and formulas. There are other things. update them slowly...