Why Stocks Go Up and Down
Why Stocks Go Up and Down is an in-depth introduction to the fundamentals of investing in stocks and bonds. It explains the basics of financial statement analysis, cash flow generation, stock price valuation, and more. It goes well beyond most introductory books. It is perfect for readers with little or no background in investing and is certain to add value for experienced investors as well. In this book, stock valuation methods including price/earnings ratio, price/cash flow ratio, and Enterprise Value / EBITDA are also covered.
The authors are experienced portfolio managers who have taught investments to both individual and institutional investors for many years.
This book is applicable for new investors who want a solid background in stock and bond fundamentals.
It is also perfect for anyone planning to take an introductory accounting or investment course.
TABLE OF CONTENTS
To the ReaderÂ
Part 1 - Basics: Starting a Business, Financial Statements, and Common Stock
Chapter 1: Starting a Business
Chapter 2: Ownership and Stock
Chapter 3: Borrowing Money as the Company Grows
Chapter 4: Ratios Investors WatchÂ
Chapter 5: Going Public - Primary and Secondary Offerings
Chapter 6: Earnings Dilution - JMC Goes Public
Part 2 - Securities Other Than Common Stock: Bonds, Preferred Stock, and Hybrid Securities
Chapter 7: Financing Growth: Selling New Stock Versus Selling New Bonds
Chapter 8: Bonds
Chapter 9: Why Bonds Go Up and Down
Chapter 10: Bonds: Advanced Topics
Chapter 11: Convertible Bonds
Chapter 12: Preferred Stock
Chapter 13: Convertible Preferred Stock and Hybrid Preferred Securities
Part 3 - Company Assets and Cash Flow
Chapter 14: Fixed Assets, Depreciation, and Cash Flow
Chapter 15: Cost Versus Expense, Capitalizing Assets, and Write-Offs
Chapter 16: Cash Flow
Chapter 17: Inventory Accounting - Impact On Company Earnings
Part 4 - Why Stocks Go Up (and Down)
Chapter 18: Price / Earnings and Other Evaluation Ratios: When is a Stock High or Low?
Chapter 19: Why Stocks Go Up and Down
Appendix: Short Selling
Glossary