Biznesnetwork Editorial
The fundamentals: reading charts, understanding market capitalisation, calculating dividend yield and analysing financial statements.
A chart is a record of transactions. Read properly it tells you about liquidity and context; read badly it shows you patterns that are not there.
Market capitalisation answers the question a share price cannot: what is this whole company worth? It also kills the idea that a GH₵2 share is cheap.
Profit is an opinion shaped by accounting choices. Cash is a fact. Here is which statements to read, in what order, and which numbers actually tell you something.
Dividend yield is one division, and the most frequently misread number in investing. It flatters a company most when the business is in trouble.