P/E Ratio
The Price to Earnings Ratio is the share price divided by the earnings per share. The smaller the number, the better the stock is in terms of opportunity. With a higher denominator, this could be a signal that the company is undervalued.
Market Cap
Market capitalization, often referred to as market cap, is a financial metric used to assess the total value of a publicly traded company. It is calculated by multiplying the company's current stock price by the total number of outstanding shares of its stock. Market cap is a fundamental indicator that provides insights into the company's size and its significance within the broader financial markets.
Outstanding Shares
Outstanding shares, also known as issued shares or shares outstanding, are the total number of a company's shares of stock that are held by shareholders, including both insiders (such as company executives and employees) and external investors (such as individual and institutional investors). These are the shares that are available for trading in the secondary market, like stock exchanges.
Outstanding shares are a crucial component in calculating a company's market capitalization (market cap), as they represent the ownership stakes held by investors in the company. Market cap is calculated by multiplying the current market price of a company's stock by the total number of outstanding shares. It's an indicator of a company's size and value within the financial markets.
Short Interest
Short interest is a metric that reflects the total number of a company's shares that have been sold short by investors. When investors "short" a stock, they are essentially betting that the stock's price will decrease. They do this by borrowing shares from a brokerage (or another holder of the shares) and then selling those borrowed shares in the market. The goal is to later buy back the shares at a lower price, return them to the lender, and profit from the price difference.
Short interest is expressed as a percentage of the total outstanding shares of a company. It's used to gauge investor sentiment and market dynamics because a high short interest indicates that many investors are bearish on the stock, expecting its price to decline. On the other hand, low short interest suggests a more bullish sentiment.