ABSTRACT

At first glance, all stocks appear to move helter-skelter without rhyme or reason, all over the lot. All stocks go up at times, and all go down at times—and not always at the same time. This chapter shows these rises and falls stocks do follow trends, make various typical patterns, and behave in a not completely disorderly manner. Individual stocks have their characteristic habits, as do some entire industries. In general, the food stocks, of which "CFG", are stable and slow-moving. Liquor stocks make wide moves on any general advance or decline of the market. Indexes show stocks with a high Sensitivity Index will move much faster in either Bull Markets or Bear Markets than stocks with low Indexes, and about how much faster, relative to the other stocks. Beta measures the systematic risk of a stock, or for those who are not into financial industry jargon, the sensitivity of a stock to the market.