Stock Market Math by Thomsett, Michael C. -- Read -- Imperial Library of Trantor

Index

Cover Title Page Copyright Contents Chapter 1: Rates of Return on Investment: What Goes In, What Comes Out

Judging the Outcome – What Did You Expect? The Basic Equation: Return on Cash Invested Calculating Option Trading Returns Taxes and Investment Return Conclusion

Chapter 2: Returns on Capital: Putting Cash to Work

Calculating Returns from the Corporate View Calculating Average Net Worth Net Worth Versus Total Capitalization Preferred Stock as Hybrid Capitalization The Importance of “Use of Capital” Conclusion

Chapter 3: Leverage and Risk Analysis: Maximizing Other People’s Money

Calculating the Cost of Money Annualized Return Leverage-Based Risk—the P/E Ratio as a Way to Quantify Using Options as a Form of Leverage Conclusion

Chapter 4: Long-Term Trends: Patience Rewarded

A Realistic View: Long-Term Returns and Annual Rates Total Net Annualized Return Carryover Losses and Net Return Realistic Expectations: Inflation and Taxes Compound Return Calculations Other Cash Flow Trends Return Formulas Useful Return Shortcuts Estimating the Value of Deposits over Time Conclusion

Chapter 5: Core Earnings and Net Worth Adjustments: Making the Numbers Real

The Problem with Today’s Accounting Rules Flaws in the GAAP System – a Passive Approach to Reporting Examples of Material Expenses Balance Sheet Problems – Inaccurate Valuation Recalculating the Key Ratios Recalculating Net Worth Finding Core Earnings – Comparative Analysis Conclusion

Chapter 6: Fundamentals: Balance Sheet Tests You Need to Know

The Nature of Fundamental Analysis Basics of the Balance Sheet Working Capital Tests Accounts Receivable Tests Inventory Tests Long-Term Asset Tests Capitalization Tangible and Total Book Value

Chapter 7: Fundamentals: Operating Statement Tests You Need to Know

The Basics of the Operating Statement Revenue Trends Earnings Trends Revenue Compared to Direct Costs and Expenses Conclusion

Chapter 8: Market Trend Calculations

Index Weighting Breadth of the Market Short Interest Ratio New Highs and New Lows Put/Call Ratio Mutual Fund Ratios

Chapter 9: Price Indicators

The Basics of Technical Analysis The Random Walk Hypothesis and the Efficient Market Theory Basic Price Calculations Chart Patterns and Interpretations Technical Tests of Market Sentiment Breadth of Trading

Chapter 10: Volume Indicators

Change in Volume On Balance Volume (OBV) Accumulation/Distribution (A/D) Money Flow Index (MFI) Large Block Ratio Conclusion

Chapter 11: Momentum Oscillators and Moving Averages

Overview, Momentum Oscillators Relative Strength Index (RSI) Moving Average Convergence Divergence (MACD) Stochastic Oscillator Moving Averages Bollinger Bands (BB) Conclusion

Chapter 12: Combined Testing: Merging Price and Financial Tests

Effective Use of Combined Analysis Valid Versus Invalid Forms of Testing Identifying Important Combined Tests Additional Price-Based Combined Tests The Oddities of Hybrid Analysis Appendix A Stock Market Formulas: Summarizing the Essentials

Appendix B: Excel Program Entries: Automating the Formulas Index