Question

When you go to Yahoo Finance and look up any stock, what do the terms "market capitalization", "volume", "beta", "EPS", and "PE ratio" mean?

Answer 1

ANSWER:

Market capitalization is defined as the total dollar market value of a company's outstanding shares. It is computed by multiplying the number of outstanding shares with current market price for one share

Volume refers to number of traded shares on a particular exchange or in a single security or index

Beta refers to a measurement of the systematic risk, or volatility, of a security or a portfolio compared to the entire market or a benchmark. Thus makes a comparison of a stock's return with the overall market fluctuation for the similar time period.

EPS: Earnings per share (EPS) is defined as portion of a business profit that is allocated to each outstanding share of its common stock. It is computed by taking the difference between a the net income and dividends paid for preferred stock of company; and afterwards dividing it by the average number of shares outstanding.

PE ratio: The price-earnings ratio (P/E ratio) refers to the ratio for company's valuation that measures its current share price relative to its per-share earnings (EPS). It indicates relationship among a company's share price and earnings per share.