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27 May, 09:00

6. Which two pieces of information shown on this stock chart would you consider most important for

people to find out before purchasing the stock of a company? Explain.

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Answers (1)
  1. 27 May, 12:26
    0
    the answers are Dividend yield and the Price to Earnings ratio.

    Dividend yield means the amount of dividend per year you will receive for the price you pay to buy the share. it is calculated by dividing the dividend amount by the current market price of the share. if the rate is higher, it is much better and we say the yield is high. this is an important information that shows the return to the investor for the price he/she pays and shows the stability and the financial capacity of a company as well.

    Price to earnings ratio show at what amount the company share are traded relative to the earnings per share of the company. this is calculated by dividing the price by the Earnings per share of the company.
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