All About NASDAQ

Surely anyone or everyone who is interested in stocks will certainly want to learn more about NASDAQ or the National Association of Securities Dealers and Automated Quotations. This association markets the stocks that are being traded in the stock market. The industries stocks prices are sent to the dealers in an automated process. In this way it enables the dealers to use real time quotations and to make buying and selling decisions. This kind of trading is actually made online; this means that there is no physical trading done unlike the traditional way that we often think of when we envision stock trading.

This is regardless as to what exchange a person is dealing with. It is necessary to carefully analyze stocks before a person determines to buy shares as an investment. However, a lot of newcomers fall into this trap of analysis paralysis. In today’s world very extensive information is now made available in every publicly traded stock. This can either be a good or a bad thing, but it will depend on how one is to use the information and how it is perceived.

There is actually a step that a person can use in analyzing stocks; these steps are often referred to as the NASDAQ Dozen. This concept is primarily based on the fact that the stocks have a good and bad qualities and the goal of the investor is to find and invest in a stock that has more good qualities than bad.

You should consider these factors to find that most coveted stock in the industry; Revenue, Earnings per Share (EPS), Return on Equity (ROE), Recommendations,

Earnings Surprises, Forecast, Earnings Growth, PEG Ratio, Industry Earnings, Days to Cover, Insider Trading and Weighted Alpha. Each of these factors will carry a weight in determining which stock is a good investment. By doing some research into these different financial terms, an investor can educate themselves further in making correct financial decisions.