文档介绍：Chapter 6
Valuing stocks
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Objectives
Understand the stock trading reports in the financial pages of the newspaper
Calculate the present value of a stock given forecasts of future dividends and future stock price
Use stock valuation formulas to infer the expected rate of return on mon stock
Interpret price-earnings ratios
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Content
Stocks and the stock market
Book values, liquidation values, and market values
mon stocks
Simplifying the dividend discount model
Growth stocks and e stocks
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Firms issue shares mon stock to the public when they need to raise money.
Common stock: ownership shares in a publicly held corporation
Sales of new stock by the firm are said to occur in the primary market. There are two types of primary market issues: IPO and seasoned offerings
Primary market: market for the sale of new securities by corporations
Initial public offering (IPO): fist offering of stock to the general public
Seasoned offering: sales of new shares by established firms
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panies usually arrange for their stocks to be listed on a stock exchange, which allows investors to trade existing stocks among themselves
Secondary market: market in which previously issued securities are traded among investors
The two principal stock markets in the . are the New York Exchange (NYSE) and NASDAQ
Dividend: periodic cash distribution from the firm to its shareholders
Price-earnings (P/E) multiple: ratio of stock price to earnings per share
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Common stock: 普通股
Primary market: 初级市场
Initial public offering (IPO): 首次公开发行
Seasoned offering: 增发
Stock exchange: 证券交易所
Secondary market: 二级市场
New York Exchange (NYSE): 纽约证券交易所
NASDAQ: 纳斯达克
Dividend: 股利
Price-earnings (P/E) multiple: 市盈率
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Content
Stocks and the stock market
Book values, liquidation values, and market values
mon stocks
Simplifying the dividend discount model
Growth stocks and e stocks
7
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