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Stock exchange lexicon letter P |
: - abbreviation of Ratio (translation of ratio between price of the share and benefit)
The is simply splitting between the exchange rate of a share and net earnings per share during one year. (example the share Media coast 7 euros and its estimated for 2006 is of 0,24 euro; its equal to 7 is divided by 0,24 what gives a 2006 = 29; this is important thus the share is expensive but society Média makes more than doubled its benefit every year and that at a price).
When you buy a share with a 2006 of 12 that means that you to pay 12 years of benefit and thus that in 12 years you will have to recover your initial placement (only if the benefit remains constant during these 12 years).
The is especially used to compare of the same society size and working in the same line of business, plus the is high plus the share is expensive compared to these benefit.
The large firms have rather weak from 8 to 16, whereas the smaller firms and in full growth can have of 20,30 or 50.
COULD or CAL:
The cal and the are sale or options to buy, standard Warrants, or Certificates.
These sale or options to buy can be on various supports, the indices, the shares, the raw materials, currencies… etc
One Cal goes up when its support goes up and one Could goes up when its support drops.
One can also see these names in verb. example: - On the previous day I have the CAC 40 and to fix share EDF.
Sweater-Back:
The sweater-back is a term used in the graphic analysis, it corresponds to a “flashback” of the exchange rates of a share on an old resistance which has just been crossed.
Penny inventories:
A inventories is a share which with a value lower than 1 euro.
These shares are often very to snuff by the investors beginning, because that makes it possible to buy large numbers of shares and that these shares vary strongly expressed as a percentage for each centimes, but if these securities are lower than 1 euro there is always a reason, either near to voluntary liquidation, or their exchange rates at summer often to drop by multitude capital growth.
It will be necessary to be very careful before investing on these shares, and getting informed about the reason of this quotation under 1 euro.
profit: - translation: Warning on the benefit:
A society makes a profit a few days before publishing these results, to warn these shareholders whom the results less good than will be provided.