What Is a Good PEG Ratio?

The price/earnings to growth ratio also called the PEG ratio is a fundamental metric that can be used to broadly evaluate the value of a company. The PEG ratio is fairly similar to the price-to-earnings ratio but additionally takes the growth factor of the company’s earnings into account. This essentially eliminates one of the primary […]

Why Are Some Stocks so Expensive?

If you’ve just begun learning about the stock market, you probably have noticed that some stocks trade at much higher prices than others. It can be intriguing to observe that penny stocks are only priced at a few cents, while major companies such as Amazon (AMZN) trade at more than $3000 per share. In fact, […]

Why Do Companies Pay Dividends?

Companies don’t have the obligation to pay out dividends to shareholders. Therefore, it is up to the company to decide whether having dividend payments would be the right action for the business or not. There are several major companies such as Amazon (AMZN), Facebook (FB) or Alphabet (GOOGL) that have never paid any dividends to […]