Why Stocks Go Up and Down

Book excerpt: Why Stocks Go Up and Down provides a sound understanding of the fundamentals of investing in stocks and bonds. The book explains the basics of financial statements and analysis, cash flow generation, stock price valuation, and more. It goes well beyond most introductory books. It is perfect for readers with little or no background in investing, and is certain to add value for experienced investors as well. Why Stocks Go Up and Down will, Explain commonly misunderstood terms such as "equity," "capitalize," "diluted earnings per share," and more. Illustrate how to analyze a company's financial statements. Detail stock price valuation methods, including price/earnings, price/cash flow, and EV/EBITDA. Who should read this book, New Investors who want a solid background in stock and bond fundamentals. Anyone planning to take an introductory accounting or investment course. Readers of popular investment books who encounter terms or concepts they do not understand. Book jacket.