Price earnings ratio: Take a look at the reported p/e



Price earnings ratio: Take a look at the reported p/e. Which stock has the highest? Lowest? Generally they should be compared by industry.

ex: p/e 20.00 the interpretation is that an investor is willing to pay $20 for $1 of current earnings. Usually a desired p/e is below $20.00. P/E should be compared only within industries

ex: textile/apparel consumer goods stocks

Some stock prices were very expensive---so how to you invest in them? One way is a Mutual Fund

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Mutual Funds help the average investor own stock in many different companies.

2 benefits of mutual funds:

1) Funds are professionally managed by Fund Managers.

Securities (stocks) have a common goal: ex: growth stocks, higher risk, green technology.

2) Funds are diversified because consist of a large variety of securities/stocks

**Also wide variety of choices. Should consider fees involved before investing.

How can you tell if your stock is in a fund?

Go to your yahoo finance stock page and click on Major Holders.

It will show top 10 Mutual Funds that invest in your stock.

Prospectus will show information about the mutual fund:

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