Expert: Dr. Joseph de Beauchamp - 11/19/2005

Question
Hello Sir,
 My name is John, I am 32 and a beginner investor.  I have recently been trying to figure out some of the peticulars about the stock market.  I have never taken business in school, therefore I am a bit at a loss.  I would like to know, if possible, what some of the symbols I see on Yahoo Finance and other similar sites actually mean and/or represent.

Here are the most perpexing.
Forward P/E (1YR)
P/E(ttm)
P/S(ttm)
EPS(ttm)

I think it's the 'ttm' part that confuses me because some of them i realize what they mean (like Earnings Per Share).

Separately, in reference to market cap. What happens when a company reaches their market cap? Do the shares split?

Last but not least, how is it company like google, that trades at $400 per share could have such a high volume. It seems very strange to those folks who dont have a lot of money. I guess I am trying to understand how a company like that can be so attractive and on everyone's lips when the stock is so very expensive.

Thank you in advance for your time.

John

Answer
I do not know what is meant by the ttm either. The rest is easy to understand  --price divided by earnings per share is the P/E for example. Share do not autmatically split --voted on by shareholders. Market cap is the outstanding times the current share price, and there is not target for a company. On google: reality versus perception is an ancient puzzle. People do many things in the name of belief rather than fact.

Dr. Joseph de Beauchamp