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6. AOL’s volume was 1,223,070. What is volume ? What might a large trade volume indicate? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 7. Regarding Boeing, which number represents the number of outstanding shares multiplied by the current market share price ? What is that number called? _ ______________________________________________________________________________ 8. Which of these companies would be classified as a small cap ? Which is a mid cap ? Which is a large cap ? _ ______________________________________________________________________________ To answer 9 - 11, divide the stock’s closing price by its EPS 9. Which stock is selling at about 34 x earnings? _ ____________________________________________ 10. Which stock is selling at about 18 x earnings? _ ____________________________________________ 11. Which stock is selling at about 47 x earnings? _ ____________________________________________ 12. Which stock closed nearest to its 52 week high ? ___________________________________________ 13. What are three characteristics of a large cap company ? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 14. You want to review a stock’s fundamentals. What will you research? List ten fundamentals. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 15. RIP. Your Great Uncle Krunkle has died at the age of 95. He had an amazing life traveling the globe ballroom dancing and bass fishing. He was one-of-a-kind. You’re sad and you’ll miss him, but what a surprise! In his will he left you $10,000 in C and D rated bonds, and a variety of stocks that have recently been downgraded from hold to sell. Explain what a ratings downgrade is, and why this is probably not much of an inheritance. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ Volume is the number of shares traded in a single day. A large trade volume (either sell off or buy) indicates something significant may be happening with the stock/company which warrants a closer look by an investor. Over 10 billion in outstanding share value; older, well established; stable earnings history. economic forecasts for both the general economy and the stock’s industry; corporate reports and statistics; annual reports, balance sheet, earnings reports; assets, business plan , management, lawsuits, debt, expenses, products in R&D, marketing strategies, industry growth . A ratings downgrade indicates a drop in quality of the bond according to a professional bond or stock rating agency. The bonds you received from Uncle Krunkle are junk bonds or are in default. They may have little value . The stocks have value , but the rating indicates they may lose value . small : iRobot mid: AOL large: Boeing 87.85 billion; market cap iRobot Boeing AOL AOL closing price earnings per share PRODUCT PREVIEW
Lesson 15 | Walk’n on Wall Street 294
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