The most important things you must know to enter stock trading.

There are 3 Sheets every company has to show their finances: Income Statements, Balance Sheets, Cashflow Statements. 

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Income Statements Sheet

Revenue = how much money a company has made.

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Net Income = Revenue - Expenses

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Shares Outstanding = Number of Shares a company has.

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Earnings Per Share (EPS) = Net Income / Shares Outstanding.

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Balance Sheet

Total Assets = how much money all of the company's assets are worth. 

Total Liabilities = How much money company's Liabilities are worth.

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Equity = Total Assets - Total Liabilities

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Book Value = Equity / Shares Outstanding. 

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Cashflow Statement

Operating Cashflow = Basically how much cashflow the company has generated after subracting various Taxes from Net Income. 

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Dividend Payment = How much money the company spends to pay the dividend to the share holders. 

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