Stocks (Filters)

Question 1

What is the formulae for Relative Volume (RVOL)?

Answer 1

Relative Volume = Average Volume / Current Volume

RVOL indicates unusually high or low trading activity compared to normal levels.

Question 2

What does a higher Market Cap indicate?

Answer 2

The higher = the more secure in volatility

Market capitalization reflects the total market value of a company’s outstanding shares.

Question 3

What does P/E Ratio stand for?

Answer 3

Price Earnings Ratio

It is used for valuation, growth expectation, and comparison.

Question 4

How is the P/E Ratio calculated?

Answer 4

P/E Ratio = Earnings per Share (EPS) / Market Price per Share

This ratio helps in assessing the valuation of a company.

Question 5

What does EPS Diluted represent?

Answer 5

Earnings per shares diluted

It accounts for all potential shares that could be outstanding if all dilutive securities were exercised.

Question 6

What are examples of dilutive securities?

Answer 6

• Stock options
• Warrants
• Convertible bonds
• Other instruments that could increase the total number of shares outstanding

These securities can affect the calculation of diluted EPS.

Question 7

What is the significance of Dividend Yield?

Answer 7

A higher yield indicates more dividend income per dollar invested

A lower yield suggests either lower payouts or a higher stock price.

Question 8

How is Dividend Yield calculated?

Answer 8

Dividend Yield (%) = (Annual Dividend per Share / Stock Price) × 100

This formula helps investors assess the income generated from dividends relative to the stock price.

Question 9

What does Volume refer to in trading?

Answer 9

Volume refers to the number of shares traded during a specific period

It can be analyzed in ascending or descending order for reliability and liquidity.

Question 10

What is the purpose of analyzing Price Percentage change?

Answer 10

To assess the interval and subcategory of price movements

This analysis can help in understanding market trends.

Question 11

What does combining performance viewer with sector allow?

Answer 11

It allows comparison on long and short term.

Question 12

What is the market reaction to news and earnings?

Answer 12

It involves market sentiment, volatility, and potential price movement.

Question 13

What is the difference between pre-market and after-market volume?

Answer 13

After-market volume is higher due to people revising during the day and making future expectations. Pre-market volume is lower due to fewer active market participants.

Question 14

Why is after-market volume higher?

Answer 14

People after work are revising the day and making future expectations.

Example: If Apple reports strong earnings at 4:05 PM, its stock may see significant volume between 4:05–8:00 PM as investors reposition.

Question 15

What does higher risk in pre-market trading imply?

Answer 15

Higher risk equals higher return.

Question 16

What does valuation show?

Answer 16

It shows the value of the book ratio.

Question 17

What are dividends?

Answer 17

Dividends are passive income for investors and indicate the financial health of a company.

Question 18

What does an increase in DPS over time indicate?

Answer 18

It shows financial strength of the company.

Example: NVDA 0.01 DPS / 138.85 stock = 0.007% meaning non-dividend paying stock.

Question 19

How is profitability shown?

Answer 19

It is shown as a percentage based on gross margin, calculated as Sales - COGS.

Question 20

What is an example of gross margin and net margin?

Answer 20

AMZN has a gross margin of 48.85% and a net margin of 9.29%.

Question 21

What are the three main financial statements?

Answer 21

Income statement, Balance sheet, and Cash flow.

Question 22

What do technicals involve?

Answer 22

They involve historical price movements, volume patterns, and indicators to predict future price trends of a stock.

Question 23

What are OS Ratings?

Answer 23

They indicate overbought or oversold conditions.

Question 24

What does the RSI Index measure?

Answer 24

It measures the speed and change of price movements on a scale of 0 to 100.

Question 25

What does an **RSI above 70** indicate?

Answer 25

It indicates that the asset may be overvalued, and a price pullback could be expected.

Question 26

What does an **RSI below 30** indicate?

Answer 26

It indicates that the asset may be undervalued, and a price rebound could be expected.

Question 27

What does an **RSI between 30 and 70** indicate?

Answer 27

It indicates a neutral zone, though traders often look for RSI to reach extremes to signal reversals.

Question 28

What **factors** influence markets?

Answer 28

Economic, law, and political systems thinking within the country itself. Taxation can attract the company.

Question 29

What is the **purpose of an index** within the market?

Answer 29

Allows you to focus on investment based on your preferences.

Question 30

What does the **pricing of stocks** indicate?

Answer 30

Above EMA means bullish, below EMA means bearish. Exponential Moving Average (EMA) gives more weight to recent prices. ## Footnote EMA crosses: crosses the 20 days.

Question 31

What is the **significance of % change** in stocks?

Answer 31

Filtering the stocks on the percentage change.

Question 32

What is **market capitalization**?

Answer 32

To buy companies who are small scale vs. large scale.

Question 33

What does **Beta (β)** measure?

Answer 33

Beta measures a stock’s volatility compared to the overall market (usually the S&P 500). ## Footnote Beta = 1 → The stock moves in line with the market. Beta > 1 → The stock is more volatile than the market (e.g., tech stocks). Beta < 1 → The stock is less volatile than the market (e.g., utilities, consumer staples). Beta < 0 → The stock moves opposite to the market (rare, like gold stocks).