- Look at the share price earnings ratio (P / E). It’s better to be under 20. The lower the PE ratio, the lower the risk of investing. Price-earnings ratio is a measure of how much a company’s shares are selling at its price. If the earnings per share of a company is 5 rupees, and if the market share price is Tk 5, then the price-to-earnings ratio will be. This means that if the company distributes the entirety of its earnings as dividends, it will take 3 years to get the investment back. But if the market value of the stock was 5 bucks, then the price-to-earnings ratio or PE ratio would have stood at. That is, if the income stream of the company is unchanged, it will take 20 years to return the investment. 2
- See Assets Value per Share (NAV). There should be an adjustment of market value. However, if the company is not liquidated, the value of the investor virtually does not matter. Only when the company is discharged, shareholders can receive some of those assets. In this case, bank loans and other payments are made before the sale price of the assets. Anything left behind is then divided among shareholders.
- See Earnings Per Share (EPS). The higher it is, the better. If EPS is high then there is a chance of paying more dividends. Dividends are also reduced when EPS is low.
- View the total number of shares. And look how floating he is. According to demand sources, if the number of shares is low then its value is more likely to increase. On the other hand, the number of shares is much more readily available in the market. Besides, it is good to buy shares that are regularly trading in good numbers. Because if you need money on an emergency basis it is possible to easily sell the shares and raise money. But investing in shares that do not have regular transactions is not possible to withdraw investments on urgent basis.
- See also the ratio of authorized capital and paid-up capital. It is quite difficult to issue bonuses and rights shares if these two capital amounts are close. In this case, the company will have to raise approved capital earlier. Investors who have a special interest in bonus dividends should look into these issues. 2
- Dividend Old: The market value of a stock can in most cases be higher than the face value. So the dividend rate does not indicate the actual return. Dividend Olde is the exact return on the shares. Dividend yield is the percentage of dividend invested based on market value. Dividend yield is obtained by multiplying the declared dividend by 5 with the market value of the respective shares. The higher the yield, the greater the investor’s returns.
- View track record of last 3-5 years. See how much dividends you pay. See the annual average price. Try to buy shares at a price close to this price.
- Check out the last 3-6 months news published on the DSE site. See news of country and abroad economy and business in newspapers. Then it will be much easier to identify potential sectors and companies.
- DSE now reports the company’s earnings after six months. It is possible to know how much profit can be made at the end of the year without a little heads up.
- The company you buy shares in should also take into account the social and political aspects of the company’s good will and its managers. How well a company does business depends on the entrepreneurial foresight, expertise and sincerity of the business. Similarly, whether the profits will be included as all or not, the dividend area will be highly conservative, depending on whether the interests of the investors are taken into account.
It is important to remember that not only during the sale, but also at the time of purchase, the profit must be confirmed. That is, if you buy shares at a good price, you will be more likely to make good profit. If the price falls higher at the time of purchase, the profit will be less but less.
Want to invest in the stock market? So before buying a share, there are some things you should keep in mind. In light of expert opinion and market experience abroad, the shareholders have highlighted some of the basics for business interests. However, these things may not always be effective. It is difficult to get desired results, especially in the short term. However, investing in consideration of factors can yield good results in the long run.