12 Pro And Cons Of Short Selling Stocks

1. Like other types of derivatives, short sales allows you to potentially reap a large return without putting much money up front.  2. Overall, short-selling reduces volatility and increases liquidity in the market. 3. Short selling can be profitable if the investor correctly predicts which stocks  will decline. 4. You can make money out of the stock prices of companies that are doing poorly :).  5. Shorting a stock is one of the few ways to make money in a bear market. 6. Short-Selling also leads to better pricing. It helps generate more accurate pricing and prevents securities from becoming over-valued. 7. Shorting can hedge your investment if you already own the stock, didn't sell it before the downturn, and think it will only lose value. You can short it, and at least profit from the remaining downturn. Cons: 1. Short-Selling is not without risks. 2. If the stock sold short rises sharply, the lender may require additional collateral or require the short seller to buy back the stock to close out their short before your planned time frame. 3. Your loss, if you are wrong is open ended.

Why Tesla Will Fail – 12 Points

1. Not ready to understand that car owner does not ready to wait for charging.
  2. Not ready to provide car around $20000. Nobody wants to buy high end car with the gift of waiting for charging.
  3. Elon Musk is working on too much projects like solar, hyperloop, spacex and car. He is not focused.
  4. Tesla is asking too much money for car booking as advance. Sign of financial problem in company.
  5. Tesla use lithium ion battery technology. There is nothing new about it. Any car company can use it.
6. There is a lot of money and power in fossil fuels and ICEVs (fossil fuel cars).
  7. Tesla has yet to prove it can do a mass market product that is both manufactured in large quantity and succeeds or fails with the general public.
  8. Unwillingness to pay: Tesla is selling a dream and hire on a promise. But truth is that top employees need to be payed top $$ and offered good working conditions.
  9. Tesla did not had a single year of profit. All they did is find investors and keep growing pumping out new models.
 10. Tesla shoppers will no longer be eligible for the tax credit starting in mid to late 2018.
11. Their safety record isn’t great.

  12. Fossil fuels is not going to exhausted. Atleast for next 40 years.

9 Difference Between Eps And Dividend Per Share

1. Earnings per share (EPS) is a ratio that gauges how profitable a company is per share of its stock. 2. Dividends per share (DPS) is the amount of dividends that the shareholders receive on a per-share basis. 3. EPS is the bottom-line measure of a company’s profitability, and it's basically defined as net income divided by the number of outstanding shares. 4. Dividends per share (DPS) is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.  5. DPS can be calculated using the formula (total dividends paid out over a period - any special dividends) ÷ (shares outstanding). 6. Basic EPS = (Net Income – Preference dividend) / number of shares outstanding. 7. The value of earnings per share will give the investor an idea of the value of dividends to expect, as dividends are a portion of the company’s net earnings that are distributed to shareholders. 8. Higher dividends per share may indicate that the firm cannot reinvest enough funds back into the firm. 9. Firm with very high growth rates usually reinvest surplus income, instead of paying dividends.

How To Find Undervalued Stocks

1. I highly recommend narrowing your search for undervalued stocks to the types of businesses you understand. 2. There are two basic steps to finding undervalued stocks: developing a rough list of stocks you want to investigate further because they meet your basic screening criteria, then doing a more in-depth analysis of these stocks by examining the financial data of the selected companies. 3. Low price/earnings ratio 4. Price-to-book (P/B) ratio: 5. The key to buying an undervalued stock that is actually worth more than it is currently trading for is to thoroughly research the company and not just buy a stock because a few of its ratios look good or because its price has recently dropped. 6. Think about the company's future prospects – can the company increase its revenue by raising prices? Increasing sales? Lowering expenses? Selling or closing unprofitable divisions? Growing the company? Who are the company's competitors and how strong are they? 7. Lagging relative price performance.If a company’s share price is lower than those of its industry peers, this may reveal an underperformance situation.  8. Debt to current asset ratio: You should select companies with a total debt to current asset ratio of 1.10 or less.  9. Return on Equity less 15% 10. Consistently high profitability: High and preferably increasing net margins are a great sign which indicate that a company is either becoming more efficient, or is able to increase its prices. 11. Return on equity (ROE): A company's annualized net income as a percentage of shareholders' equity. 12. Another strategy that value investors favor is to buy companies whose products or services have been in demand for a long time and are likely to continue to be in demand. 13. High dividend yield.Bet you didn’t think to look at the dividend yield, did you? But actually, if a company’s dividend payment rate exceeds that of their competitors, this may indicate that the share price has dipped to “undervalued” status (in relation to its dividend payment). 14. Low market-to-book ratio.A company that has a low market value (total market capitalization) as a ratio to book value (total shareholder equity) may present an undervaluation situation.  15. Free cash flow. Many investors put less emphasis on reported profit and more on free cash flow. 16. A sustainable competitive advantageHere the analysis goes beyond numbers and financial ratios. Highly profitable businesses attract competitors, and increased competition generally leads to lower profits, except when a company possesses a sustainable competitive advantage. 17. Price-to-earnings to growth (PEG): Found by dividing a stock's P/E ratio by its projected earnings growth rate over a certain time period -- typically the next five years. 18. Honest, competent, shareholder friendly management 19. Estimate intrinsic values 20. The final rule for finding undervalued stocks is to be patient. Sometimes the overall market gets expensive and none of the companies you follow will seem to be trading for attractive values, and that's OK.

9 Difference Between Stocks And Options

1. stocks give you a small piece of ownership in the company.
2. options are just contracts that give you the right to buy or sell the stock at a specific price by a specific date.
3. Options, like futures contracts, have expiration dates, while stocks do not.
4. Owning stock of a company also entitles you to receive a respective percentage of the paid out dividend (if the company pays any dividend, that is).
5. An option does not entitle you to vote or receive dividends.
6. Options are derivative instruments based on stocks, funds, currencies, commodities, futures or index.
7. When a stock moves 1%, its stock options could move by as much as 10%.
8. Two types of options are calls and puts.
9. Trading options is more like betting on horses at the racetrack.

8 Difference Between Stock And Bond

1. Stocks, or shares of stock, represent an ownership interest in a corporation. Bonds are a form of long-term debt in which the issuing corporation promises to pay the principal amount at a specific date.
2. Bonds are less risky than stocks.
3. Stocks pay dividends to the owners.
Bonds pay interest to the bondholders.
4. Bonds are issued by public sector authorities, credit institutions, companies and supranational institutions.
Stock are issued by corporation or joint-stock companies.
5. Is the return guaranteed?
Stock:
No
Bond:
Yes
6. Stockholders are the owners of the company.
Bondholders are the lenders to the company.
7. Add on benefits
Stock:
The holders get voting rights.
Bond:
The holders get preference at the time of repayment.
8. Bonds markets, unlike stock or share markets, often do not have a centralized exchange or trading system.
Stock or share markets, have a centralized exchange or trading system.