Parents, here are some questions that will stimulate conversation with your child about your finances. Use these as a guide while reading the books; clicking on the mushroom offers in-text questions as well.
1. Why would a potential stock buyer want to see the stock’s history of sales, earnings growth, dividends, and valuation metrics like price to earnings ratio, price to sales ratio, etc?
2. Why would smoothly increasing sales and earnings be better than more volatile metrics?
3. What is the average price to earnings metric for the US stock market in the last five years?
4. What is the market price to earnings valuation metric today?
5. The stock price to earnings valuation metric is set by inflation, earnings growth, and market sentiment. Why?