Common Shares FAQs

• Why do companies issue common shares?
• Why do companies buy-back their previously issued common shares?
• What type of information should you consider when purchasing common shares?
• What are some common terms associated with common shares?
• How can you assess the value of common shares?
• If valuing a common share is so difficult and open to interpretation, why try to calculate a share’s current or future value?
• What are some of the more common valuation measures for assessing common shares?
• What is the efficient markets hypothesis?
• What is price-to-earnings ratio or multiple (P/E) ?
• What is discounted cash flow-per-share?
• What is price-to-cash flow ratio (P/CF)?
• What is price-to-book value ratio (P/B)?