Stock Research
Homework Steps:
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Already know it?...
Just skip to any step:
(quick snapshot... understanding your stock)
100   Stock ticker & Company Profile
110   Anatomy of a Stock - company snapshot
120   What the company does and how it makes its money
130   What Sector & Which Industry?
140   What Competitors?
150   Knowing The Share Price History
160   Knowing Number of Shares Outstanding
(what the company controls)
200   Company Website
220   Annual Report (10K)
230   Latest Quarterly Report (10Q) & Other SEC Filings
240   Conference Calls
250   Earnings Guidance Provided
260   Insider Buying & Selling
270   Stock Splits
275   Secondary Offerings
280   Dividend & Yield
(what others control)
300   Analyst Ratings & Expectations
310   Major Holders
320   Major Index Membership
330   Short Position
340   News Headlines
350   Industry Events
(what you can control)

400   Your Available Time
410   Age/Risk Tolerance
420   Don't Buy All At Once
430   Diversification
500   Jim Cramer's 25 Rules for Investing
510   Warren Buffett's Stock Portfolio
520   Business News - TV & Newspapers
530   Business News - Websites
540   Last check: Cramer's latest comments on
600   Stocks 101: The Basics
610   Online Trading 101 (vs. paying a broker)
620   Anatomy Of A Stock:  The Parts
630   Mad Money Recap
640   Setting up your own free Yahoo! Finance Portfolio
650   Stock/Investing Glossary
(coming soon)

700   Open Step
750   Open Step
790   Open Step
800   Ongoing Weekly Homework for each of your stocks
800   Ongoing Weekly Homework for each of your stocks
WB   Free Stock Homework Workbook - PDF Download







Next Step:                                                                                                         Last updated:      
  160  Knowing Number of Shares Outstanding                                                                 Share

Reading more, beyond the bottom line...
You need to understand the number of shares outstanding in a company, and later, who holds most of those shares (i.e., Major Holders), and what the likelihood is that the company will issue more through Secondary Offerings.  

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It's basic arithmetic, right?...  Knowing the number of shares outstanding, times the current share price indicates the market value, or "market capitalization" of the company.

Why do companies issue more stock?... 
That's simple.  To raise more money for the company. 

But it's the reason why they do it that matters.  If it's to keep it from going under... to make debt payments... that may not be a good sign.  But if it's to fund a cutting-edge new technology & product launch, that may be a pretty good reason.  And that may actually cause the stock price to go up after they announce the secondary offering & reason for it. 

If a company decides to dramatically increase the number of its outstanding shares (or has a history of doing so in the past, through secondary offerings), this can indicate a certain level of risk that your shares may be diluted, resulting in a drop in share price (and stock losses) for you.

In addition to looking at your company's past decisions to offer more stock (and number of times, if any, after their initial public offering), you also want to look at its competitors, and how many shares they have outstanding, as a possible indicator of your company's likelihood to offer more stock to raise funds.

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What you should find in this step:

Our Key Findings from this step (and where we found the information)...
From this step, the findings are simple.  You want to know the number of outstanding shares for both your company's stock and for competitors:



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Additional Resources

Additional Resources

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