Posted On: 09/20/2016 10:38:15 AM
Post# of 22940
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Re: tradingjeff #13278
Okay, probably because I have an MBA and an undergrad in accounting, terms like IPPS and MPPS are not new to me. But lets say I was new. Someone over on another un-named board was bashing the use of the acronym "MPPS" and listed all uses of "MPPS" according to acronymfinder.com.
Funny thing, within the context of businesses and stock, acronymnfinder was a bust.
However, go to your accounting book or your investing 101 book and look up how to compute "Earnings per share". There you will find that you need to divide Market Price Per Share by Earnings per share.
Therefore, if you cannot understand this without explanation:
P/E=MPPS/EPS, then you have not done enough basic DD to be investing.
You need to be able to know that the slash betweed the P and E is not a division sign and the slash between MPPS and EPS is. This is basic information. Don't buy stock without knowing the basic ratios.
Actually the slash between P and E is technically a divisor. Its there to indicate, in short cut form, that you need to do some math to get to the right answer.
Funny thing, within the context of businesses and stock, acronymnfinder was a bust.
However, go to your accounting book or your investing 101 book and look up how to compute "Earnings per share". There you will find that you need to divide Market Price Per Share by Earnings per share.
Therefore, if you cannot understand this without explanation:
P/E=MPPS/EPS, then you have not done enough basic DD to be investing.
You need to be able to know that the slash betweed the P and E is not a division sign and the slash between MPPS and EPS is. This is basic information. Don't buy stock without knowing the basic ratios.
Actually the slash between P and E is technically a divisor. Its there to indicate, in short cut form, that you need to do some math to get to the right answer.
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I'm only responsible for what I say, not for what you understand.