My Stock Secret

Discover How to Make Money in the Stock Market

‘Terminology’

Rule of 72 – How Long to Double Your Money

How long it takes you to double your original investment is a pretty standard way for investors to determine the effectiveness of their portfolio. The goal as an investor should be to double your holdings in the safest and quickest way possible. Having the tools to help you determine if a stock is going to net you the return you are after… Read More

Price to Earnings Ratio – P/E

The standard definition of ‘Price-Earnings Ratio – P/E Ratio’  is the valuation ratio of a company’s current share price compared to its per-share earnings. The P/E ratio is calculated as: Market Value per Share/Earnings per Share (EPS) For example, if a stock is currently trading at $50 a share and earnings over the last 12 months were $2.00 per share, the P/E… Read More

Dividends

What are dividends? The literal definition is as follows: Dividends are the distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of… Read More