1. Please continue referring to the list of significant benefits of learning about markets, finance, and investing, from the link from the previous question.

Here is the link http://www.thestockmarketcompanion.com/?p=4618.

We mention two key emotions that must be mastered, or face possible disaster. Which emotions are they?

2. What are the U.S. Federal Reserve’s two stated primary objectives?

3. This link opens a list of long lasting benefits resulting from learning about how the finance and equities markets work and learning how to invest on your own.

Here is the link http://www.thestockmarketcompanion.com/?p=4618.

In the first 10 benefits listed, under which benefit is making money or becoming financially wealthy specifically mentioned?

4. Prices of commodity based stocks like steel companies, or oil companies, or copper mining companies are highly subject to fluctuation in the value of the U.S. dollar and _____________________________________________?

5. Below is a link to a simple table titled, “Boeing_Quarterly_Earnings_2011.pdf”.   This link will open this table on a new window of your web browser.
Link = Boeing_Quarterly_Earnings_2011

Look now at the last column in the table titled, “Year over Year Revenue Growth”. When you look down that column of numbers and come to the entry from 2009/12, you see tremendous revenue growth (+41.60%) in that quarter over the quarter from the previous year. The same quarter for that previous year would have been 2008/12, which is not listed in this table. The quarter ending 2008/12 was right in the middle of a deep recession. From this overall table, what can we say drove this 41.6% increase in revenue growth in 2009/12 vs. that year ago quarter?

6. You have identified a publicly traded company “ABC, Inc.” that has the right ingredients for real growth. You have also determined from the chart of “ABC’s” stock, what a suitable entry price is for purchasing the shares, which minimizes your risks. In this particular case, you purchased shares of ABC stock at $16.10/share AFTER the stock price moved higher over the last year from $10 to $16/share and after it built a nice lateral consolidation over the last six months.  After your purchase, the stock begins to ramp higher to $23/share, at which point you advance your stop from $14.95 to $19.95. On paper your investment has increased almost +43% in a few months. All of a sudden there is trouble in Europe with European debt and one of the European Monetary Union (EMU) member states announces that it is leaving the EMU. The global financial markets are stunned. You wake up on the morning of that announcement and see that your stop at $19.95 was triggered, but your order was filled at $19.50/share. You remember that SMC taught you that stop orders have their limitations. Your stop-market order told the broker to sell your shares at the next market price, after your stop was triggered. The shares were falling quickly when your stop was triggered, so the next market price was $19.50/share, and that’s the price you got. Although you wish that you had sold your shares at $23, you are still satisfied because your overall approx. return on your investment is +21%. As a comparison, CD’s at the bank are paying 1% for the year, and real estate prices are not moving higher. The ABC share price is now at approx. $18/share and you now have your cash, having sold at $19.50. You are glad that you did not put in a Stop – Limit order, because it doesn’t look like ABC, Inc. shares are moving higher any time soon and you would still be holding the shares. In summary, stop-market orders are not _______________. They will get you out of the stock, but at the next ________________ price. Please pick the best answer pair from the bottom list of choices which best finish the sentence.

7. At Stock Market Companion, we use the “SPY” (S&P 500 ETF) instead of the S&P 500 market data to graphically represent the S&P 500 market. Our reason for this is –

8. Below is a link to a simple table titled, “Boeing_Quarterly_Earnings_2011.pdf”.   This link will open this table on a new window of your web browser.
Link = Boeing_Quarterly_Earnings_2011

Please add-up the quarterly earnings/share for the most recent 4 quarters from this table and arrive at a sum. This sum is the annual earnings/share represented by the most recent 4 quarters from this table. You should arrive at a number of $5.05/share.  If the share price of Boeing, C. (Ticker: BA) is approx. $70/share, what is the current price/earnings ratio for Boeing based on these 4 quarters of earnings for the company?

9. During which famous period in Western civilization was the idea of the “corporation” born and used commercially?

10. Name one purpose (of several) for the stock market?

11. What is the significance of a key reversal day in the market?

12. Please continue referring to the list of significant benefits of learning about markets, finance, and investing, from the link from the previous question.

Here is the link http://www.thestockmarketcompanion.com/?p=4618.

What does Benefit #10 suggest about the reality of being right or wrong?

13. Below is a link to a simple table titled, “Boeing_Quarterly_Earnings_2011.pdf”.   This link will open this table on a new window of your web browser.
Link = Boeing_Quarterly_Earnings_2011

When you look at this table of Boeing’s quarterly earnings, the earnings are provided from the most recent quarter at the top and then each table line afterwards provides earnings results from previous quarters, going back 8 quarters or two years. The Earnings/Share numbers provided in the 3rd and 4th columns are measured in U.S.$/share. The Actual Revenue number in the 5th column is in U.S.$ millions. So, when you are looking at the number 17,727 for the Actual Revenue for the 3 quarter of 2011, what is the full value of this revenue?

14. Generally on the first Friday of each month, the United States Bureau of Labor provides a report of their best estimate of the rate of employment and unemployment in America for the previous month. This report is called the U.S. Department of Labor Non-Farm Payroll Report. The Bureau of Labor surveys approx. 140,000 businesses and government agencies, representing approx. 440,000 worksites in order to make their report. This Non-Farm Payroll Report can have a significant impact on the stock market and is watched closely by individual investors. If this report shows that unemployment is unexpectedly rising, how do you think that the stock market will respond?

15. What is one of the individual stock investor’s greatest advantages?

16. Ford Motor Co. (Ticker: F) earned these amounts (U.S.$/share) in each of the preceding 4 quarters – Q2 2011 = $0.65 ; Q1 2011 = $0.62 ; Q4 2010 = $0.30 ; Q3 2010 = $0.48 ; If Ford’s closing price today was $10.86/share, what is it’s “trailing 12 month” Price / Earnings ratio ?

17. Share prices are  ___________________  future earnings for the company?

18. Please continue referring to the list of significant benefits of learning about markets, finance, and investing, from the link from the previous question.

Here is the link http://www.thestockmarketcompanion.com/?p=4618.

When you read Benefit #6 and #7, what four things below are specifically mentioned that you can learn from digging deeper into the lives of successful people in the context of learning about markets, finance, and investing?

19. Below is a link to a simple table titled, “Boeing_Quarterly_Earnings_2011.pdf”.   This link will open this table on a new window of your web browser.
Link = Boeing_Quarterly_Earnings_2011

Imagine that over the last 8 weeks, Boeing has reported two record orders for new aircraft and we know that the lead time on this aircraft is far into the future.  We see from the table that Boeing has already put in two quarters of sequential positive revenue growth. Based on these new sales records, should we expect this trend in revenue growth to continue and quite possibly improve?

20. Please continue referring to the list of significant benefits of learning about markets, finance, and investing, from the link from the previous question.

Here is the link http://www.thestockmarketcompanion.com/?p=4618.

In Benefit #11, are we saying that the study and application of work in the area of finance, markets, and investing may NOT result in financial benefit for you? If so, then why do it?