24. Calculate Book Value with Preferred Stock

Videos
Download Preston’s 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist

Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:

In this lesson, students learned the importance of Common Shareholder’s equity and Preferred Shareholder’s par value. In order to properly assess the value of a common shareholder’s equity we must always remember to subtract the par value of the preferred stock. Although this might be a painful process for new investors, it’s importance is paramount. If an individual is interested in investing in such a company, you would need to assess this “correct book value” for previous periods in order to reasonably assess the common share holder’s equity growth in a business.

Articles You May Like

Wait to Buy CrowdStrike at Support as a Quality Cybersecurity Play
Cramer says he’s not ready to take profits in Nvidia, sees stock at $10 trillion one day
Best Stocks & ETF for the Metaverse
Stocks making the biggest moves midday: Vertex Pharmaceuticals, Moderna, Lennar, Salesforce and more
The AT&T Dividend Will Be About 6.5% After the Warner Bros. Spin-off