(PE) Finding Basic Stock Terms
Lesson summary:
In this practical lesson, students use MSN Money to find common stock terminology discussed in previous lessons. The instructor uses Johnson & Johnson as an example to show how the income statement, balance sheet, earnings per share, book value, market price, and price to earnings ratio are related to a real company. The lesson aims to teach students how to calculate these different terms and understand their importance.
By following along with the instructor, students can see how the numbers from Johnson & Johnson’s financial statements are used to calculate various ratios and metrics that are commonly used in the stock market. The lesson emphasizes the importance of understanding these terms in order to make informed investment decisions. Students are encouraged to review previous lessons if they find any of the concepts difficult and to practice using other financial websites to find similar information.