Why Stocks Go Up and Down

Full Name
Why Stocks Go Up and Down: The Book You Need To Understand Other Investment Books

Why Stocks Go Up and Down is an in-depth introduction to the fundamentals of investing in stocks and bonds. It explains the basics of financial statement analysis, cash flow generation, stock price valuation, and more. It goes well beyond most introductory books. It is perfect for readers with little or no background in investing and is certain to add value for experienced investors as well. In this book, stock valuation methods including price/earnings ratio, price/cash flow ratio, and Enterprise Value / EBITDA are also covered.

  • The authors are experienced portfolio managers who have taught investments to both individual and institutional investors for many years.

  • This book is applicable for new investors who want a solid background in stock and bond fundamentals.

  • It is also perfect for anyone planning to take an introductory accounting or investment course.


To the Reader 

Part 1 - Basics: Starting a Business, Financial Statements, and Common Stock

  • Chapter 1: Starting a Business

  • Chapter 2: Ownership and Stock

  • Chapter 3: Borrowing Money as the Company Grows

  • Chapter 4: Ratios Investors Watch 

  • Chapter 5: Going Public - Primary and Secondary Offerings

  • Chapter 6: Earnings Dilution - JMC Goes Public

Part 2 - Securities Other Than Common Stock: Bonds, Preferred Stock, and Hybrid Securities

Part 3 - Company Assets and Cash Flow

  • Chapter 14: Fixed Assets, Depreciation, and Cash Flow

  • Chapter 15: Cost Versus Expense, Capitalizing Assets, and Write-Offs

  • Chapter 16: Cash Flow

  • Chapter 17: Inventory Accounting - Impact On Company Earnings

Part 4 - Why Stocks Go Up (and Down)

Appendix: Short Selling