Investing for Beginners: Most Popular Articles
These articles are the most popular over the last month.
Calculate Gross Profit Margin
Gross Profit Margin can be calculated by dividing gross profit by total revenue. Gross profit margin tells investors the percentage of revenue that is used in the production process.
Gross Profit Margin can be calculated by dividing gross profit by total revenue. Gross profit margin tells investors the percentage of revenue that is used in the production process.
How to Invest in Stocks
Have you ever wondered how to invest in stock but just don't know where to begin? In this quick tutorial on how to invest in stock your investing for beginners guide will walk you through the basics and help you get a better understanding of what you need to do to get the process rolling.
Have you ever wondered how to invest in stock but just don't know where to begin? In this quick tutorial on how to invest in stock your investing for beginners guide will walk you through the basics and help you get a better understanding of what you need to do to get the process rolling.
Working Capital
Working capital on the balance sheet is the difference between current assets and current liabilities. The reason working capital is so important is because it lets you know the resources management has on hand to pay day-to-day bills and conduct operations. Some companies, such as Wal-Mart or other restaurants, can actually have negative working capital.
Working capital on the balance sheet is the difference between current assets and current liabilities. The reason working capital is so important is because it lets you know the resources management has on hand to pay day-to-day bills and conduct operations. Some companies, such as Wal-Mart or other restaurants, can actually have negative working capital.
Guide to Saving Money
Saving money, or the saving habit as Napoleon Hill put it so many years ago, is the foundation of all
Saving money, or the saving habit as Napoleon Hill put it so many years ago, is the foundation of all
Make Money from Buying Stocks
How does an investor actually make money from buying stock? The return an investor makes comes from dividends and an increase in the price of the shares.
How does an investor actually make money from buying stock? The return an investor makes comes from dividends and an increase in the price of the shares.
Return on Equity (ROE) InState
Return on Equity, ROE, tells investors how much profit a company earned in comparison to the total amount of shareholder equity on the balance sheet. A high return on equity means a business is more likely to generate cash internally. Return on equity is calculated by dividing net profit by average shareholder equity for the period.
Return on Equity, ROE, tells investors how much profit a company earned in comparison to the total amount of shareholder equity on the balance sheet. A high return on equity means a business is more likely to generate cash internally. Return on equity is calculated by dividing net profit by average shareholder equity for the period.
Straight Line Depreciation
The straight line depreciation method is the simplest and most commonly used depreciation method. Straight line depreciation is calculated by spreading the cost of an asset out over its useful life.
The straight line depreciation method is the simplest and most commonly used depreciation method. Straight line depreciation is calculated by spreading the cost of an asset out over its useful life.
401k Introduction
401k loans and 401k hardship withdrawals are ways employees can access their retirement funds in the event of an emergency or a financial need. This article discusses the pros and cons of 401k loans and 401k hardship withdrawals.
401k loans and 401k hardship withdrawals are ways employees can access their retirement funds in the event of an emergency or a financial need. This article discusses the pros and cons of 401k loans and 401k hardship withdrawals.
How to Get Rich
How to get rich is a comprehensive collection of articles, resources, and guides on investing, building wealth, saving, and money management, all designed to help you with one goal: how to get rich.
How to get rich is a comprehensive collection of articles, resources, and guides on investing, building wealth, saving, and money management, all designed to help you with one goal: how to get rich.
Inventory Turns
Inventory turns and inventory turnover can be calculated for any company using the information found on the income statement and balance sheet.
Inventory turns and inventory turnover can be calculated for any company using the information found on the income statement and balance sheet.
How to Become Wealthy
These nine financial keys will help you get on the road to financial freedom, build wealth, and become rich.
These nine financial keys will help you get on the road to financial freedom, build wealth, and become rich.
Net Profit Margin
Net profit margin is a ratio comparing net profit after taxes to revenue. Investors can calculate the net profit margin by using the income statement.
Net profit margin is a ratio comparing net profit after taxes to revenue. Investors can calculate the net profit margin by using the income statement.
Top 10 Investing Books
These top ten investing books will help lay a firm foundation for your personal portfolio management abilities.
These top ten investing books will help lay a firm foundation for your personal portfolio management abilities.
Warren Buffett Bio
Read a biography of Warren Buffett, the Chairman of Berkshire Hathaway. Warren Buffett went to Columbia to study under Ben Graham before gaining control of Berkshire Hathaway.
Read a biography of Warren Buffett, the Chairman of Berkshire Hathaway. Warren Buffett went to Columbia to study under Ben Graham before gaining control of Berkshire Hathaway.
Stock Investing for Beginners
History has shown that owning stocks is one of the easiest and most profitable ways to grow your wealth over the long-term. Virtually every member of the Forbes 400 list got there because they own a large block of shares in a public or private corporation, ranging from manufacturing and oil drilling to cosmetics and money management. Although your beginning may be humble, this guide to investing in stocks will explain what stocks are, how you can make money from them, and much more.
History has shown that owning stocks is one of the easiest and most profitable ways to grow your wealth over the long-term. Virtually every member of the Forbes 400 list got there because they own a large block of shares in a public or private corporation, ranging from manufacturing and oil drilling to cosmetics and money management. Although your beginning may be humble, this guide to investing in stocks will explain what stocks are, how you can make money from them, and much more.
Avoid IRA Fees
Learn eight ways to avoid the early withdrawal fee on your individual retirement account (IRA) in this article from Investing for Beginners.
Learn eight ways to avoid the early withdrawal fee on your individual retirement account (IRA) in this article from Investing for Beginners.
Traditional IRA vs. Roth IRA
Deciding whether to open a Roth IRA or Traditional IRA is a major decision with potentially large financial consequences. Both forms of the IRA are great ways to save for retirement, although each offers different advantages. This IRA FAQ lists the pros and cons of each type.
Deciding whether to open a Roth IRA or Traditional IRA is a major decision with potentially large financial consequences. Both forms of the IRA are great ways to save for retirement, although each offers different advantages. This IRA FAQ lists the pros and cons of each type.
ROA on the Income Statement
Return on Assets (ROA) tells an investor how much profit a company generated for each dollar of assets. Return on assets is calculated by dividing revenue by average assets for the period.
Return on Assets (ROA) tells an investor how much profit a company generated for each dollar of assets. Return on assets is calculated by dividing revenue by average assets for the period.
The Basics of Shorting Stock
Shorting stock allows speculators to profit from falling stock prices. This article explains the basics of shorting stock, and considerations for those thinking about trying it out.
Shorting stock allows speculators to profit from falling stock prices. This article explains the basics of shorting stock, and considerations for those thinking about trying it out.
Dividends 101
This dividends 101 step-by-step guide is your complete introduction to dividends, dividend investing, and much more. You'll discover why dividends are important to your portfolio, the process of how a company pays dividends out to its shareholders, learn about rare types of dividends such as property dividends and liquidating dividends, and much moree.
This dividends 101 step-by-step guide is your complete introduction to dividends, dividend investing, and much more. You'll discover why dividends are important to your portfolio, the process of how a company pays dividends out to its shareholders, learn about rare types of dividends such as property dividends and liquidating dividends, and much moree.
Buying Stock without a Broker
This article discusses the advantages of buying stock without a broker the three primary ways you can begin.
This article discusses the advantages of buying stock without a broker the three primary ways you can begin.
Current Liabilities
Current liabilities on the balance sheet represent all of the liabilities or debts a company owes for the next twelve months. Current liabilities are an important part of measuring a company's liquidity position.
Current liabilities on the balance sheet represent all of the liabilities or debts a company owes for the next twelve months. Current liabilities are an important part of measuring a company's liquidity position.
The Board of Directors
The responsibility of a board of directors is to act as the shareholders' representative in all matters. A board of directors approves dividends, sanctions mergers, hires management and acts as a steward of shareholder capital.
The responsibility of a board of directors is to act as the shareholders' representative in all matters. A board of directors approves dividends, sanctions mergers, hires management and acts as a steward of shareholder capital.
Introduction Lesson 3
Learning to read a balance sheet is important because it can help you understand the risk involved in a company. The balance sheet shows a company's debt level, net worth, and can help calculate important financial ratios.
Learning to read a balance sheet is important because it can help you understand the risk involved in a company. The balance sheet shows a company's debt level, net worth, and can help calculate important financial ratios.
Double Declining Balance
The double declining balance depreciation method is an accelerated depreciation method that increases the amount of charges taken during the first few years. The double declining balance depreciation method can be helpful when comparing and analyzing an income statement.
The double declining balance depreciation method is an accelerated depreciation method that increases the amount of charges taken during the first few years. The double declining balance depreciation method can be helpful when comparing and analyzing an income statement.
Gross Profit
Gross profit is the total revenue subtracted by the cost of generating that revenue, or cost of goods sold. Gross profit is used to calculate gross margin.
Gross profit is the total revenue subtracted by the cost of generating that revenue, or cost of goods sold. Gross profit is used to calculate gross margin.
The Current Ratio
The current ratio is a test of a company's liquidity. It can be calculated by dividing current assets by current liabilities on the balance sheet.
The current ratio is a test of a company's liquidity. It can be calculated by dividing current assets by current liabilities on the balance sheet.
IRA Contribution Limits
IRA contribution limits vary by year and age. This article charts the maximum allowable contribution to your IRA each year.
IRA contribution limits vary by year and age. This article charts the maximum allowable contribution to your IRA each year.
Dividend Reinvestment Programs, or DRIPs, Could Be Your Portfolio's Best Friend
A dividend reinvestment program, or dividend reinvestment plan, is often called a DRIP. These low-cost or no-cost accounts allow you to buy shares of stock directly from a company through a sponsoring financial institution or transfer agent.
A dividend reinvestment program, or dividend reinvestment plan, is often called a DRIP. These low-cost or no-cost accounts allow you to buy shares of stock directly from a company through a sponsoring financial institution or transfer agent.
What Is Stock?
Have you ever wondered what stock is or why shares of stock even exist? This guide will go far beyond
Have you ever wondered what stock is or why shares of stock even exist? This guide will go far beyond
Assets, Liabilities, & Equity
The best way to understand the balance sheet is to see an actual balance sheet and walk through it line by line. Here is a real example that we've taken from the Coca-Cola financial statements. It shows oyu assets, liabilities, and shareholder equity.
The best way to understand the balance sheet is to see an actual balance sheet and walk through it line by line. Here is a real example that we've taken from the Coca-Cola financial statements. It shows oyu assets, liabilities, and shareholder equity.
Before You Open Broker Account
Before you open a brokerage account, you need to learn the difference between a traditional and discount broker, the benefits and costs associated with each, and which one fits your style or personality.
Before you open a brokerage account, you need to learn the difference between a traditional and discount broker, the benefits and costs associated with each, and which one fits your style or personality.
Current Assets Balance Sheet
Cash and cash equivalents and short term investments are carried under current assets on the balance sheet.
Cash and cash equivalents and short term investments are carried under current assets on the balance sheet.
Total Revenue or Total Sales
Revenue or sales is the amount of money a business brought in during the time period covered by the income statement. Many companies break revenue and sales sources up by division or segment.
Revenue or sales is the amount of money a business brought in during the time period covered by the income statement. Many companies break revenue and sales sources up by division or segment.
What is a Hedge Fund
Have you ever asked yourself the question what is a hedge fund or wondered how they operate? In this basic introduction, we answer the question what is a hedge fund and help you learn how the hedge fund managers are paid, how their compensation is calculated, and why the term originally developed.
Have you ever asked yourself the question what is a hedge fund or wondered how they operate? In this basic introduction, we answer the question what is a hedge fund and help you learn how the hedge fund managers are paid, how their compensation is calculated, and why the term originally developed.
Retained Earnings
Retained earnings are the profits a company has reinvested in itself. Retained earnings are carder on the balance sheet under Shareholder Equity.
Retained earnings are the profits a company has reinvested in itself. Retained earnings are carder on the balance sheet under Shareholder Equity.
What is a Brokerage Account
A brokerage account is an account at a financial institution that allows an investor to buy, sell, trade and hold stocks, bonds, mutual funds, options, etc. There are a number of different types of brokers and brokerage accounts.
A brokerage account is an account at a financial institution that allows an investor to buy, sell, trade and hold stocks, bonds, mutual funds, options, etc. There are a number of different types of brokers and brokerage accounts.
Return on Equity DuPont Model
Return on equity, or ROE, is made up of three important components under the DuPont model. Discover how to calculate return on equity using these three components in this article.
Return on equity, or ROE, is made up of three important components under the DuPont model. Discover how to calculate return on equity using these three components in this article.
Sample Income Statement
The best way learn how to read financial statements is to begin with a real income statement. Here, we start with the Microsoft Income Statement. We will work our way through it line by line until you understand financial statement analysis and how to calculate financial ratios.
The best way learn how to read financial statements is to begin with a real income statement. Here, we start with the Microsoft Income Statement. We will work our way through it line by line until you understand financial statement analysis and how to calculate financial ratios.
7 Rules of Wealth Building
The seven rules of wealth building feature time tested keys to building wealth in your personal life while ensuring your time is spent on the things that really matter. This article is part of the wealth building series on the investing for beginners site.
The seven rules of wealth building feature time tested keys to building wealth in your personal life while ensuring your time is spent on the things that really matter. This article is part of the wealth building series on the investing for beginners site.
The P/E Ratio
The price-to-earnings ratio, or p/e ratio as it is often called, was made famous by value investor Benjamin Graham, who encouraged investors to use it as a defense tool against overpaying for stocks. The p/e ratio is a financial measurement of a company's current profit relative to the price you pay for each $1 of that profit. It is one of the most fundamental concepts in finance and investing. You need to know what it is, how to calculate the p/e ratio, and why it is important.
The price-to-earnings ratio, or p/e ratio as it is often called, was made famous by value investor Benjamin Graham, who encouraged investors to use it as a defense tool against overpaying for stocks. The p/e ratio is a financial measurement of a company's current profit relative to the price you pay for each $1 of that profit. It is one of the most fundamental concepts in finance and investing. You need to know what it is, how to calculate the p/e ratio, and why it is important.
Depreciation and Amortization
Depreciation and amortization expense is recorded against earnings on the income statement in order to spread the initial purchase price of a fixed asset out over its useful life. Although depreciation expense requires no immediate cash outlay, it should not be added back to a company's profit.
Depreciation and amortization expense is recorded against earnings on the income statement in order to spread the initial purchase price of a fixed asset out over its useful life. Although depreciation expense requires no immediate cash outlay, it should not be added back to a company's profit.
Introduction
The primary purpose of the income statement is to report a company's earnings to investors. Income statement analysis can provide important insights into profit and expenses, operations, financial ratios and margins.
The primary purpose of the income statement is to report a company's earnings to investors. Income statement analysis can provide important insights into profit and expenses, operations, financial ratios and margins.
Accumulated Depreciation
Accumulated depreciation is the write-down of an asset's carrying amount on the balance sheet due to loss of value from usage and age. Accumulated depreciation can best be understood by using a new car as an example.
Accumulated depreciation is the write-down of an asset's carrying amount on the balance sheet due to loss of value from usage and age. Accumulated depreciation can best be understood by using a new car as an example.
Roth IRA for Kids
Opening a Roth IRA for kids can be one of the best ways to help your children invest their money, saving cash tax-free to grow for decades as it generates dividends, interest income, and rental income.
Opening a Roth IRA for kids can be one of the best ways to help your children invest their money, saving cash tax-free to grow for decades as it generates dividends, interest income, and rental income.
Interest Coverage Ratio
The interest coverage ratio is a measurement of the number of times a company can make its interest payments with its earnings before interest and taxes. Interest coverage is calculated by dividing EBIT by interest expense.
The interest coverage ratio is a measurement of the number of times a company can make its interest payments with its earnings before interest and taxes. Interest coverage is calculated by dividing EBIT by interest expense.
Asset Turnover Income Statemnt
The asset turnover ratio calculates the total sales revenue for every dollar of assets a company owns. To calculate asset turnover, take the total revenue and divide it by the average assets of the period.
The asset turnover ratio calculates the total sales revenue for every dollar of assets a company owns. To calculate asset turnover, take the total revenue and divide it by the average assets of the period.
Operating Income
Operating income is a measurement of the money a company generated from its own operations. Operating income can be used to guage the general health of the core business or businesses. Operating profit margin is another measurement of management's efficiency. The operating profit margin compares the quality of a company's operations to its competitors.
Operating income is a measurement of the money a company generated from its own operations. Operating income can be used to guage the general health of the core business or businesses. Operating profit margin is another measurement of management's efficiency. The operating profit margin compares the quality of a company's operations to its competitors.
Stock Trading 101
Stock trading is one of the basic activities of a new investor and most often involves online stock trading at discount brokers and brokerage firms. This beginner's guide to stock trading will walk you through the process of placing an order with your broker, choosing individual stocks, and expenses to consider such as commissions.
Stock trading is one of the basic activities of a new investor and most often involves online stock trading at discount brokers and brokerage firms. This beginner's guide to stock trading will walk you through the process of placing an order with your broker, choosing individual stocks, and expenses to consider such as commissions.
Basic Diluted EPS
Basic earnings per share (Basic EPS) is the profit a company made divided by the shares outstanding. Diluted earnings per share (diluted EPS) factor in possible share dilution from stock options, convertible warrants and preferred stock.
Basic earnings per share (Basic EPS) is the profit a company made divided by the shares outstanding. Diluted earnings per share (diluted EPS) factor in possible share dilution from stock options, convertible warrants and preferred stock.
Investing Lesson 1 Intro
Investing lesson is an introduction to the stock market. The lesson aims to give a basic understanding of the market to new investors.
Investing lesson is an introduction to the stock market. The lesson aims to give a basic understanding of the market to new investors.
Guide to Dividends
The dividend guide teaches you how to invest in dividend stock, find high dividend shares, calculate the dividend yield, the dividend payout ratio, as well as determine just what a board of directors considers when setting the percentage of profits that are distributed instead of being reinvested. You'll also learn why reinvesting your dividends is so important to building wealth.
The dividend guide teaches you how to invest in dividend stock, find high dividend shares, calculate the dividend yield, the dividend payout ratio, as well as determine just what a board of directors considers when setting the percentage of profits that are distributed instead of being reinvested. You'll also learn why reinvesting your dividends is so important to building wealth.
What Is a Derivative?
With the word derivative being thrown around every night on the news, you feel left out if you don't know what it means. Don't worry! In a few seconds, you're going to learn what a derivative is, the different types of derivatives, and why derivatives can be dangerous to the overall financial system if left unchecked.
With the word derivative being thrown around every night on the news, you feel left out if you don't know what it means. Don't worry! In a few seconds, you're going to learn what a derivative is, the different types of derivatives, and why derivatives can be dangerous to the overall financial system if left unchecked.
Inventory
Inventory carried on the balance sheet consists of goods or merchandise a company has but may not yet have sold to customers. When managing inventories you should try to keep them as low as possible to increase profits and return on equity.
Inventory carried on the balance sheet consists of goods or merchandise a company has but may not yet have sold to customers. When managing inventories you should try to keep them as low as possible to increase profits and return on equity.
What is a Balance Sheet?
What is a balance sheet? A balance sheet is the record of a company's assets and liabilities.
What is a balance sheet? A balance sheet is the record of a company's assets and liabilities.
What is a Bond?
Bonds are long term debt sold to investors by companies. The proceeds of the bond issue are used for many purposes, including operational expansion.
Bonds are long term debt sold to investors by companies. The proceeds of the bond issue are used for many purposes, including operational expansion.
Debt to Equity Ratio
The debt to equity ratio measures a company's ability to borrow and repay money.
The debt to equity ratio measures a company's ability to borrow and repay money.
Understanding Holding Company
When you begin investing for the first time, you are going to encounter something known as a holding company quite often. In fact, many of the most successful companies in the world are really holding companies. This basic introduction the holding company will explain what holding companies are, why you need to understand how they work, and some things to consider before investing in one.
When you begin investing for the first time, you are going to encounter something known as a holding company quite often. In fact, many of the most successful companies in the world are really holding companies. This basic introduction the holding company will explain what holding companies are, why you need to understand how they work, and some things to consider before investing in one.
Lesson 3 Table of Content
Balance sheets can be complicated but this table of contents will walk you through the understanding the balance sheet investing lesson so you'll be able to feel more confident when facing an annual report or small business financial statements.
Balance sheets can be complicated but this table of contents will walk you through the understanding the balance sheet investing lesson so you'll be able to feel more confident when facing an annual report or small business financial statements.
101 Things Every New Investor Should Know About Stocks
Everyone talks about stocks but few people understand them. This investing for beginners guide was put together so you could learn the 101 most frequently asked questions about stocks and the stock market in only a few minutes, putting you years ahead of the average American in understand what stocks are, how they work, and what some common terms mean.
Everyone talks about stocks but few people understand them. This investing for beginners guide was put together so you could learn the 101 most frequently asked questions about stocks and the stock market in only a few minutes, putting you years ahead of the average American in understand what stocks are, how they work, and what some common terms mean.
LT Debt and Debt to Equity
Long term debt and the debt to equity ratio are important indications of the financial stability of a company. They can be found using the balance sheet.
Long term debt and the debt to equity ratio are important indications of the financial stability of a company. They can be found using the balance sheet.
Operating Expense
Operating expenses arise during the ordinary course of running a business. Operating expense consist of salaries paid to employees, research and development costs, and other charges that must be subtracted from revenue.
Operating expenses arise during the ordinary course of running a business. Operating expense consist of salaries paid to employees, research and development costs, and other charges that must be subtracted from revenue.
Goodwill on the Balance Sheet
Accounting goodwill is the premium over book value a company pays during an acquisition. It goes on the balance sheet and is subject to periodic tests for goodwill impairment.
Accounting goodwill is the premium over book value a company pays during an acquisition. It goes on the balance sheet and is subject to periodic tests for goodwill impairment.
10 Capitalist Class Secrets
The capitalist class represents the top 1 percent of wealth in the United States. By earning a living from their assets, the capitalist class is often able to enjoy life more and spend time with family, travel, and do the things about which most people dream. This ten part step-by-step guide will reveal why the capitalist class is different and how they got there.
The capitalist class represents the top 1 percent of wealth in the United States. By earning a living from their assets, the capitalist class is often able to enjoy life more and spend time with family, travel, and do the things about which most people dream. This ten part step-by-step guide will reveal why the capitalist class is different and how they got there.
Shareholder Equity
Shareholder equity is the difference between total assets and total liabilities on the balance sheet.
Shareholder equity is the difference between total assets and total liabilities on the balance sheet.
Getting a Company's Reports
When analyzing a balance sheet, you will need a copy of a company's annual report, 10K, and 10q. These filings, sent into the SEC, provide you information on a company's health, management, and other information that's important to know as an investor.
When analyzing a balance sheet, you will need a copy of a company's annual report, 10K, and 10q. These filings, sent into the SEC, provide you information on a company's health, management, and other information that's important to know as an investor.
Cost of Goods Sold - COGS
Cost of goods sold (COGS) is the expense a company incurred in order to manufacture, create, or sell a product. Going back to our Pizza Parlor example, cost of goods sold, COGS, would include items such as flour and tomato sauce.
Cost of goods sold (COGS) is the expense a company incurred in order to manufacture, create, or sell a product. Going back to our Pizza Parlor example, cost of goods sold, COGS, would include items such as flour and tomato sauce.
Interest Income and Expense
Interest income and expense reflects the amount companies pay on their debt or earn on their deposit accounts. Interest income and expense is sometimes reported as net on the income statement.
Interest income and expense reflects the amount companies pay on their debt or earn on their deposit accounts. Interest income and expense is sometimes reported as net on the income statement.
Sum of the Years Digits
The sum of the years digits depreciation method is an accelerated depreciation method that assumes an asset loses a greater percentage of its value in the earlier years of its useful life. Sum of the years depreciation charges are calculated by adding up the useful years of an asset.
The sum of the years digits depreciation method is an accelerated depreciation method that assumes an asset loses a greater percentage of its value in the earlier years of its useful life. Sum of the years depreciation charges are calculated by adding up the useful years of an asset.
Negative Working Capital
Negative working capital is possible for companies with high inventory turnover.
Negative working capital is possible for companies with high inventory turnover.
Understanding Bond Duration
One of the biggest dangers to bond investors can be calculated by something called bond duration. It is a measure of interest rate risk and, if left unchecked, having a higher bond duration than is appropriate for your risk profile can result in huge losses, sometimes much higher than short-term stock fluctuations.
One of the biggest dangers to bond investors can be calculated by something called bond duration. It is a measure of interest rate risk and, if left unchecked, having a higher bond duration than is appropriate for your risk profile can result in huge losses, sometimes much higher than short-term stock fluctuations.
Intro to Stock Trading
Limit orders allow an investor to limit the maximum price he is willing to pay or the minimum price is willing to accept for a stock. Limit orders usually have higher associated commissions than market orders.
Limit orders allow an investor to limit the maximum price he is willing to pay or the minimum price is willing to accept for a stock. Limit orders usually have higher associated commissions than market orders.
Total Return and CAGR
In order to evaluate investment performance, you must learn to calculate total return and compound annual growth rate, or CAGR for short. Total return and CAGR will allow you to gauge your performance relative to the market, mutual funds and other investors. This article will teach you to calculate the two metrics and put them to work today.
In order to evaluate investment performance, you must learn to calculate total return and compound annual growth rate, or CAGR for short. Total return and CAGR will allow you to gauge your performance relative to the market, mutual funds and other investors. This article will teach you to calculate the two metrics and put them to work today.
Intro to Capital Structure
A company's capital structure is one of the most important decisions management has to make because it influences everything from the firm's risk profile to the financial ratios such as return on equity and interest coverage. In this resources, we examine why capital structure matters and the components that make up the capital structure of any company, no matter how large or small.
A company's capital structure is one of the most important decisions management has to make because it influences everything from the firm's risk profile to the financial ratios such as return on equity and interest coverage. In this resources, we examine why capital structure matters and the components that make up the capital structure of any company, no matter how large or small.
In this Corner: Investing Cash
Money markets and certificates of deposit are two popular investments for idle cash. This article discusses the benefits and drawbacks of each to help you determine what you should do with your cash reserves.
Money markets and certificates of deposit are two popular investments for idle cash. This article discusses the benefits and drawbacks of each to help you determine what you should do with your cash reserves.
Guide to Brokers
The broker and brokerage firm are the two primary relationships you will have when you begin your journey to investing, whether it's a stock broker, commodities broker, future broker, bond broker, or an all purpose brokerage firm. This broker guide for new investors explains some of the things you need to look for when selecting a brokerage firm, fees to watch out for, an explanation of asset management accounts, and more.
The broker and brokerage firm are the two primary relationships you will have when you begin your journey to investing, whether it's a stock broker, commodities broker, future broker, bond broker, or an all purpose brokerage firm. This broker guide for new investors explains some of the things you need to look for when selecting a brokerage firm, fees to watch out for, an explanation of asset management accounts, and more.
Long Term Investments
Long term investments and carrying values on the balance sheet are easy to understand. Both long term investments and long term assets represent assets owned by a company that may not be easily converted to cash but still have value.
Long term investments and carrying values on the balance sheet are easy to understand. Both long term investments and long term assets represent assets owned by a company that may not be easily converted to cash but still have value.
Guide to Financial Statements
Financial statements are the report card of business. Whether you are a new investor, a small business owner, a manager, an executive, a non-profit director, or just trying to keep track of your personal finances, you need to understand how to read, analyze, and create financial statements so you can get a full and accurate understanding how much money their is, how much debt is owed, the income coming in each moth, and the expenses going out the door.
Financial statements are the report card of business. Whether you are a new investor, a small business owner, a manager, an executive, a non-profit director, or just trying to keep track of your personal finances, you need to understand how to read, analyze, and create financial statements so you can get a full and accurate understanding how much money their is, how much debt is owed, the income coming in each moth, and the expenses going out the door.
What is Dividend Yield
Dividend yield is an easy way to compare the relative attractiveness of various dividend-paying stocks. This FAQ will teach you how to calculate dividend yield.
Dividend yield is an easy way to compare the relative attractiveness of various dividend-paying stocks. This FAQ will teach you how to calculate dividend yield.
8 Financial Independence
Most of what you learned growing up about financial independence, money, income, and wealth are not true. This is understandable - think about whom you first learned them from (odds are good, it was from those who were not rich themselves). In this step-by-step guide to achieving financial independence, you'll discover some of the most remarkable secrets to freeing yourself from that special brand of anxiety that money troubles can elicit.
Most of what you learned growing up about financial independence, money, income, and wealth are not true. This is understandable - think about whom you first learned them from (odds are good, it was from those who were not rich themselves). In this step-by-step guide to achieving financial independence, you'll discover some of the most remarkable secrets to freeing yourself from that special brand of anxiety that money troubles can elicit.
Financial Ratio Guide
Before you can begin investing in individual stocks, you need to learn how to calculate financial ratios. Even if you decide to get your financial ratios from your broker or financial site, you still need to know what they represent. Otherwise, you may make a mistake and buy into a company with too much debt, not enough cash to survive, or low profitability. This guide to financial ratios will explain how to calculate the most important financial ratios, and, more importantly, what they mean.
Before you can begin investing in individual stocks, you need to learn how to calculate financial ratios. Even if you decide to get your financial ratios from your broker or financial site, you still need to know what they represent. Otherwise, you may make a mistake and buy into a company with too much debt, not enough cash to survive, or low profitability. This guide to financial ratios will explain how to calculate the most important financial ratios, and, more importantly, what they mean.
Take Action Today
In ten simple steps, you can begin building a complete financial portfolio. The complete financial portfolio includes yoru 401k, brokerage accounts, house, car, student loans, credit card debt, and more.
In ten simple steps, you can begin building a complete financial portfolio. The complete financial portfolio includes yoru 401k, brokerage accounts, house, car, student loans, credit card debt, and more.
Dividend Tax Rates and Rules
When you buy a stock, the odds are good that you will end up paying a dividend tax on the earnings that are distributed to you. Depending upon how long you've owned your shares, the dividend tax you pay will vary. This guide to the dividend tax was designed to help new investors understand what it is, the tax rates, and how it is calculated.
When you buy a stock, the odds are good that you will end up paying a dividend tax on the earnings that are distributed to you. Depending upon how long you've owned your shares, the dividend tax you pay will vary. This guide to the dividend tax was designed to help new investors understand what it is, the tax rates, and how it is calculated.
Receivable Turns
To calculate receivable turns, divide credit sales by the average receivables for the period.
To calculate receivable turns, divide credit sales by the average receivables for the period.
Min. Interest Balance Sheet
Minority Interest is found on the balance sheet under Liabilities. It is the value of the minority shareholders' holdings in a company's subsidiary or affiliate.
Minority Interest is found on the balance sheet under Liabilities. It is the value of the minority shareholders' holdings in a company's subsidiary or affiliate.
Accounts Receivable
Accounts receivables represents money owed to a business by its customers. The nature of accounts receivable and the portion they represent of current assets on the balance sheet depends upon the industry in which a company operates.
Accounts receivables represents money owed to a business by its customers. The nature of accounts receivable and the portion they represent of current assets on the balance sheet depends upon the industry in which a company operates.
Passive Income
The key to success is something known as passive income which is money earned without much time or effort. In fact, passive income is even taxed differently than active income. This article discusses the type of passive income you can earn and which ones are best for those just getting into the idea of earning money from their investments.
The key to success is something known as passive income which is money earned without much time or effort. In fact, passive income is even taxed differently than active income. This article discusses the type of passive income you can earn and which ones are best for those just getting into the idea of earning money from their investments.
What is a Market Maker and How do Market Makers Make Money
Market makers are banks and brokerages which stand by all hours of the trading day with a firm ask and bid price on a stock. They are compensated by the spread, which is the difference between the ask and bid price.
Market makers are banks and brokerages which stand by all hours of the trading day with a firm ask and bid price on a stock. They are compensated by the spread, which is the difference between the ask and bid price.
Mutual Funds 101
Mutual funds have made investing easier for millions of Americans. This article explains mutual fund basics, benefits, and selection.
Mutual funds have made investing easier for millions of Americans. This article explains mutual fund basics, benefits, and selection.
Revenue Recognition
Revenue recognition can drastically affect the financial statements. This article explains the difference between revenue recognition methods and the practical implications for the average investor. Revenue recognition methods covered include sales basis, percentage of completion, completed contract, installment and cost recoverability.
Revenue recognition can drastically affect the financial statements. This article explains the difference between revenue recognition methods and the practical implications for the average investor. Revenue recognition methods covered include sales basis, percentage of completion, completed contract, installment and cost recoverability.
5 Financial Ratios Categories
There are five categories of financial ratios into which most calculations fall. Here, we explain what they are to help you understand how to organize your own financial analysis when valuing a stock or bond.
There are five categories of financial ratios into which most calculations fall. Here, we explain what they are to help you understand how to organize your own financial analysis when valuing a stock or bond.
Treasury Stock
Treasury stock is listed under shareholder equity on the balance sheet. It represents the stock a company has issued and subsequently reacquired.
Treasury stock is listed under shareholder equity on the balance sheet. It represents the stock a company has issued and subsequently reacquired.
Prepaid Expenses
Prepaid expenses on the balance sheet represent a current asset because the company still has the right to receive the product or service for which it has paid.
Prepaid expenses on the balance sheet represent a current asset because the company still has the right to receive the product or service for which it has paid.
The 3 Types of Investment Risk
Business, valuation and force of sale are the three risks that are present in every investment decision you will ever make. In order to be a successful investor, you must minimize these risks.
Business, valuation and force of sale are the three risks that are present in every investment decision you will ever make. In order to be a successful investor, you must minimize these risks.
How to Amass the First \$100k
It has been said that making the first $100,000 is the hardest and most difficult part of building your wealth. The truth is, that a few secrets can help making the first one hundred thousand dollars far easier and less stressful. Let us show you some things that might help.
It has been said that making the first $100,000 is the hardest and most difficult part of building your wealth. The truth is, that a few secrets can help making the first one hundred thousand dollars far easier and less stressful. Let us show you some things that might help.
Real Estate vs. Stocks
Should you invest in real estate or stocks? The average investor has asked that question for decades, perhaps not truly understanding the difference between the two asset classes. Although both real estate and stocks offer substantial advantages, each come with their own risks. We examine these risks and discuss some of the other factors you may want to take into consideration when deciding on real estate vs. stocks.
Should you invest in real estate or stocks? The average investor has asked that question for decades, perhaps not truly understanding the difference between the two asset classes. Although both real estate and stocks offer substantial advantages, each come with their own risks. We examine these risks and discuss some of the other factors you may want to take into consideration when deciding on real estate vs. stocks.
Balance Sheet Ratios
Various formulas and calculations used to analyze a balance sheet including financial ratios such as receivable turnover and working capital per dollar of sales and current ratio and debt to equity ratio are important for investors attempting to understanding how well a business is performing.
Various formulas and calculations used to analyze a balance sheet including financial ratios such as receivable turnover and working capital per dollar of sales and current ratio and debt to equity ratio are important for investors attempting to understanding how well a business is performing.
Enterprise Value
Enterprise value is the takeover value of a company. Enterprise value is calculated by adding a corporation’s market capitalization, preferred stock, and outstanding debt together and then subtracting out the cash and cash equivalents
Enterprise value is the takeover value of a company. Enterprise value is calculated by adding a corporation’s market capitalization, preferred stock, and outstanding debt together and then subtracting out the cash and cash equivalents
Income Investing for Beginners
In this special feature on income investing, you�re going to develop a better understanding of income investing, which types of assets might be considered appropriate for someone who wanted to follow an income investing philosophy, and the most common dangers that can derail an otherwise successful income investing portfolio. At the very least, you will be armed with some things to consider before contacting a broker or money manager.
In this special feature on income investing, you�re going to develop a better understanding of income investing, which types of assets might be considered appropriate for someone who wanted to follow an income investing philosophy, and the most common dangers that can derail an otherwise successful income investing portfolio. At the very least, you will be armed with some things to consider before contacting a broker or money manager.
4 Things to Look for in an ...
New investors are often interested in purchasing a company's stock but don't know what to look for. Here are the four most important things you should require of each of your investments.
New investors are often interested in purchasing a company's stock but don't know what to look for. Here are the four most important things you should require of each of your investments.
Falling Stock Prices
In falling stock markets, you can actually get tremendously rich by buying the right stocks. How do you actually make money? How can falling prices increase your long-term returns? For these answers and more, this article can help you tremendously.
In falling stock markets, you can actually get tremendously rich by buying the right stocks. How do you actually make money? How can falling prices increase your long-term returns? For these answers and more, this article can help you tremendously.
SGA Expenses
Selling, general and administrative expenses, or SGA expenses for short, consist of payroll costs, salaries, commissions, travel expenses, and advertising expenses. SGA expense is recorded as an operating expense on the income statement.
Selling, general and administrative expenses, or SGA expenses for short, consist of payroll costs, salaries, commissions, travel expenses, and advertising expenses. SGA expense is recorded as an operating expense on the income statement.
Three Types of Capital
There are three categories of financial capital that are important for you to know when analyzing your business or a potential investment. They each have their own benefits and characteristics. They include equity capital, debt capital, and specialty capital.
There are three categories of financial capital that are important for you to know when analyzing your business or a potential investment. They each have their own benefits and characteristics. They include equity capital, debt capital, and specialty capital.
How to Think About Share Price
Investors cannot look at the share price by itself to determine the value of a stock. They must consider the relationship to earnings and net assets to share price. Stock splits can affect the actual price of shares.
Investors cannot look at the share price by itself to determine the value of a stock. They must consider the relationship to earnings and net assets to share price. Stock splits can affect the actual price of shares.
Where to Begin: Investing 101
Want to start investing but have no idea where to begin? This is your step-by-step guide to putting your money to work for you today.
Want to start investing but have no idea where to begin? This is your step-by-step guide to putting your money to work for you today.
Dollar Cost Averaging
Dollar cost averaging is the practice of investing or saving money at specific times, regardless of market conditions or your personal financial outlook. Dollar cost averaging is an effective investment strategy that is practiced by some of the best investors in the world.
Dollar cost averaging is the practice of investing or saving money at specific times, regardless of market conditions or your personal financial outlook. Dollar cost averaging is an effective investment strategy that is practiced by some of the best investors in the world.
Why Stock Prices Fluctuate
Have you ever wondered what determines stock price? This FAQ explains why stock prices fluctuate.
Have you ever wondered what determines stock price? This FAQ explains why stock prices fluctuate.
Intro to Investment Banks
Many investors are not familiar with an investment bank and how it differs from the more traditional commercial bank. Put simply, an investment bank handles the equity and debt issuance, as well as proprietary trading with its own capital, rather than taking on deposits and lending out money for car loans, student loans, mortgages, and more.
Many investors are not familiar with an investment bank and how it differs from the more traditional commercial bank. Put simply, an investment bank handles the equity and debt issuance, as well as proprietary trading with its own capital, rather than taking on deposits and lending out money for car loans, student loans, mortgages, and more.
Minority Interest
Depending upon the amount of voting stock owned, minority interests on the income statement will be recorded using the cost method, the equity method, or the consolidated method.
Depending upon the amount of voting stock owned, minority interests on the income statement will be recorded using the cost method, the equity method, or the consolidated method.
Negotiate Credit Card Debt
Before you can begin to invest and build wealth for you and your family, you must destroy your credit card debt. If you have fallen behind, or are desperately treading water trying to avoid late payments, the massive interest charges and late penalties can quickly cause your balance to balloon, making it even more difficult, if not impossible, to make progress. One solution is a credit card debt settlement that allows you to pay a lump sum and get out of your debt entirely.
Before you can begin to invest and build wealth for you and your family, you must destroy your credit card debt. If you have fallen behind, or are desperately treading water trying to avoid late payments, the massive interest charges and late penalties can quickly cause your balance to balloon, making it even more difficult, if not impossible, to make progress. One solution is a credit card debt settlement that allows you to pay a lump sum and get out of your debt entirely.
How Much Money Is Rich?
How much money does it take to be rich? That is the question posed to a group of financial planners from a recent CNN Money resource. Most seemed to believe that it took between $2 million and $12 million to be rich and there reasons were compelling.
How much money does it take to be rich? That is the question posed to a group of financial planners from a recent CNN Money resource. Most seemed to believe that it took between $2 million and $12 million to be rich and there reasons were compelling.
Goodwill and Amortization
Goodwill and other intangible assets must be amortized on the income statement. If the goodwill becomes impaired, management will announce a write-down and reduce the carrying value on the balance sheet.
Goodwill and other intangible assets must be amortized on the income statement. If the goodwill becomes impaired, management will announce a write-down and reduce the carrying value on the balance sheet.
The Benefits of Stock Buy B...
Companies declare stock buy back programs to reduce the number of shares outstanding, effectively increasing the earnings per share. Investors should look for companies that have announced share buy back programs.
Companies declare stock buy back programs to reduce the number of shares outstanding, effectively increasing the earnings per share. Investors should look for companies that have announced share buy back programs.
Working Capital Per Dollar
Working capital per dollar of sales is a financial ratio that can tell you how much working capital a business needs for ever one dollar of revenue it generates.
Working capital per dollar of sales is a financial ratio that can tell you how much working capital a business needs for ever one dollar of revenue it generates.
The Power of Compound Interest
Compound interest, or compounding as it is sometimes called, is the process of earning interest on your interest. The nature of all investments is that they generate cash upon which you can live or they compound by you reinvesting your earnings, resulting in the compound interest cycle beginning. Let us show you some of the ways that you can help, or hurt, your compounded rate of return so you better understand how to harness the power of this investing principle.
Compound interest, or compounding as it is sometimes called, is the process of earning interest on your interest. The nature of all investments is that they generate cash upon which you can live or they compound by you reinvesting your earnings, resulting in the compound interest cycle beginning. Let us show you some of the ways that you can help, or hurt, your compounded rate of return so you better understand how to harness the power of this investing principle.
Table of Contents Lesson 4
This investing lesson will teach you how to read an income statement and begin your journey onto the road that is financial statement analysis. It is useful for investors and businesses owners because you will learn how the language of accounting is used to build an income statement, helping you understand what is going on with a business.
This investing lesson will teach you how to read an income statement and begin your journey onto the road that is financial statement analysis. It is useful for investors and businesses owners because you will learn how the language of accounting is used to build an income statement, helping you understand what is going on with a business.
What Is a Stock Split?
Have you ever asked, what is a stock split? A stock split is a cosmetic increase in the number of shares outstanding, thereby reducing the total value of each share. Many investors incorrectly assume stock splits are a good thing.
Have you ever asked, what is a stock split? A stock split is a cosmetic increase in the number of shares outstanding, thereby reducing the total value of each share. Many investors incorrectly assume stock splits are a good thing.
Investing in Municipal Bonds
Investing in tax-free municipal bonds can provide many advantages. There are two types of municipal bonds, general obligation and revenue. This article teaches you how to choose between corporate and tax-free munis.
Investing in tax-free municipal bonds can provide many advantages. There are two types of municipal bonds, general obligation and revenue. This article teaches you how to choose between corporate and tax-free munis.
Investing in Savings Bonds
Investing in US savings bonds is a simple and easy way to put your money to work. This guide to investing in US savings bonds features in-depth information on how savings bonds work, the Series EE savings bonds, Series I savings bonds, and other products issued by the United States Treasury Department.
Investing in US savings bonds is a simple and easy way to put your money to work. This guide to investing in US savings bonds features in-depth information on how savings bonds work, the Series EE savings bonds, Series I savings bonds, and other products issued by the United States Treasury Department.
Saving Money vs. Investing Money
Saving money and investing money are not the same thing. Each has an important part to play in your family's financial life but very few new investors can explain the difference between the two.
Saving money and investing money are not the same thing. Each has an important part to play in your family's financial life but very few new investors can explain the difference between the two.
Capital Surplus and Reserves
Capital surplus and proprietorship reserves on the balance sheet are important to understanding the strength of a company, whether analyzing a small business or researching a stock.
Capital surplus and proprietorship reserves on the balance sheet are important to understanding the strength of a company, whether analyzing a small business or researching a stock.
Short Selling - Short a Stock
: When someone shorts a stock (sometimes called "selling short"), they borrow shares of a company from
: When someone shorts a stock (sometimes called "selling short"), they borrow shares of a company from
Intro to Lesson 2
In this investing lesson, we are going to learn why stocks become over or under valued.
In this investing lesson, we are going to learn why stocks become over or under valued.
Estate Tax Rate
The estate tax rate and estate tax rate exemptions applied to the assets passed onto your heirs depends upon the year in which you pass away.
The estate tax rate and estate tax rate exemptions applied to the assets passed onto your heirs depends upon the year in which you pass away.
Intangible Assets
Intangible assets on the balance sheet represent items such as patents, rents, royalties, and other assets that don't have physical form but still have value. Intangible assets are an important part of companies such as pharmaceuticals, which rely on drug patents to make money.
Intangible assets on the balance sheet represent items such as patents, rents, royalties, and other assets that don't have physical form but still have value. Intangible assets are an important part of companies such as pharmaceuticals, which rely on drug patents to make money.
Blue Chip Benefits
There are a number of benefits to investing in blue chip stocks. These benefits are caused by the franchise value and earnings power of blue chips.
There are a number of benefits to investing in blue chip stocks. These benefits are caused by the franchise value and earnings power of blue chips.
Book Value
Book Value and Net Tangible Assets are the excess of assets excluding intangible items subtracted by total liabilities. Book value can be calculated using the balance sheet.
Book Value and Net Tangible Assets are the excess of assets excluding intangible items subtracted by total liabilities. Book value can be calculated using the balance sheet.
What is a Blue Chip
This FAQ provides blue chip stock definitions, examples and links.
This FAQ provides blue chip stock definitions, examples and links.
The Fed & Interest Rates
This article is an introduction to the Federal Reserve and interest rates including the funds rate and the discount rate.
This article is an introduction to the Federal Reserve and interest rates including the funds rate and the discount rate.
Pay Off Your Debt or Invest?
To decide whether to pay off your debt or invest, you must consider the amount of return you expect on your investments, and the type of debt you currently have.
To decide whether to pay off your debt or invest, you must consider the amount of return you expect on your investments, and the type of debt you currently have.
What Is a Good Rate of Return
Many people don't know what they should consider a good rate of return on their investments. What is a good rate of return on stock? What is a good rate of return on real estate? History can provide us some clues as to what might be considered reasonable expectations. This can help you avoid taking on more risk than you should.
Many people don't know what they should consider a good rate of return on their investments. What is a good rate of return on stock? What is a good rate of return on real estate? History can provide us some clues as to what might be considered reasonable expectations. This can help you avoid taking on more risk than you should.
Extraordinary Items
Extraordinary and nonrecurring items and events arise in the ordinary course of business. When analyzing an incomes statement, you should ignore them in your valuation.
Extraordinary and nonrecurring items and events arise in the ordinary course of business. When analyzing an incomes statement, you should ignore them in your valuation.
Quick Test Ratio
The quick test ratio is the strongest test of a company's liquidity and is an extreme measure of a company's working capital.
The quick test ratio is the strongest test of a company's liquidity and is an extreme measure of a company's working capital.
Series EE Savings Bond Guide
The Series EE savings bond is one of the most popular savings bonds ever issued in the United States. This collection of Series EE savings bond articles, resources, and guides will make it easy for you to find out how you can add them to your portfolio, how interest rates are set on EE bonds, and much more.
The Series EE savings bond is one of the most popular savings bonds ever issued in the United States. This collection of Series EE savings bond articles, resources, and guides will make it easy for you to find out how you can add them to your portfolio, how interest rates are set on EE bonds, and much more.
Guide to Mutual Funds
Mutual funds are one of the most popular ways for new investors to build wealth. Whether you own them through your retirement plan, such as a 401(k) or IRA, or you buy them directly or through a brokerage account, this guide to mutual fund investing was designed to help you understand what they are, how they work, and things you may want to consider.
Mutual funds are one of the most popular ways for new investors to build wealth. Whether you own them through your retirement plan, such as a 401(k) or IRA, or you buy them directly or through a brokerage account, this guide to mutual fund investing was designed to help you understand what they are, how they work, and things you may want to consider.
Finding Investment Ideas fo...
Many investors are interested in selecting individual common stocks for their portfolio, but aren't sure where to begin their search for a good investment idea. These four tips will help you find hundreds of investment ideas in your own backyard.
Many investors are interested in selecting individual common stocks for their portfolio, but aren't sure where to begin their search for a good investment idea. These four tips will help you find hundreds of investment ideas in your own backyard.
High P/E Ratio = Overvalued?
Does a high price to earnings ratio, or p/e ratio, mean a stock is overvalued? Not always. Sometimes a high p/e ratio can be justified if the investor is certain as a result of his or her analysis that the cash flows will increase enough to result in a higher earnings yield in the future.
Does a high price to earnings ratio, or p/e ratio, mean a stock is overvalued? Not always. Sometimes a high p/e ratio can be justified if the investor is certain as a result of his or her analysis that the cash flows will increase enough to result in a higher earnings yield in the future.
How Stock Prices Determined
Learn what makes stock prices go up and down in this free lesson.
Learn what makes stock prices go up and down in this free lesson.
Should You Invest in an IPO
Many investors get excited by an IPO or initial public offering. Should you invest in an IPO or should you stick to established businesses?
Many investors get excited by an IPO or initial public offering. Should you invest in an IPO or should you stick to established businesses?
Are Non-Dividend Stocks Ponzis
New investors sometimes want to know how a company that doesn't pay cash dividends to the owners can have any value at all? Are non-dividend paying stocks merely Ponzi schemes, depending solely upon the value the next investor is willing to pay? No. This extraordinary explanation will explain why non-dividend paying stocks can still offer tremendous value for shareholders.
New investors sometimes want to know how a company that doesn't pay cash dividends to the owners can have any value at all? Are non-dividend paying stocks merely Ponzi schemes, depending solely upon the value the next investor is willing to pay? No. This extraordinary explanation will explain why non-dividend paying stocks can still offer tremendous value for shareholders.
Research and Development
R&D, short for research and development, costs can range from nothing to billions of dollars depending upon the type of business. Research and development is listed on the income statement as an operating expense.
R&D, short for research and development, costs can range from nothing to billions of dollars depending upon the type of business. Research and development is listed on the income statement as an operating expense.
The Investor vs. Speculator
Learn the difference between an investor and a speculator
Learn the difference between an investor and a speculator
10K
A 10K is a filing that publicly traded companies are required, by law, to send into the SEC containing everything about their business that an investor would want to know before buying or selling shares of stock. These documents are available to the public for free. The best way to think about a 10K is to consider it a document that the government forces management to prepare for you, the owner, explaining the company’s finances, risks, opportunities, and current operations. I
A 10K is a filing that publicly traded companies are required, by law, to send into the SEC containing everything about their business that an investor would want to know before buying or selling shares of stock. These documents are available to the public for free. The best way to think about a 10K is to consider it a document that the government forces management to prepare for you, the owner, explaining the company’s finances, risks, opportunities, and current operations. I
McDonald's vs. Wendy's
Using McDonald's and Wendy's restaurants as an example of inventory turn, we can calculate the real world inventory turnover ratio to show you how efficiently both restaurant chains manage their inventory.
Using McDonald's and Wendy's restaurants as an example of inventory turn, we can calculate the real world inventory turnover ratio to show you how efficiently both restaurant chains manage their inventory.
How Much Money Should I Be Saving?
Have you ever asked yourself the question - How much should I be saving? If you have, we've taken a detailed look at the questions you need to ask yourself before you can tackle that important question.
Have you ever asked yourself the question - How much should I be saving? If you have, we've taken a detailed look at the questions you need to ask yourself before you can tackle that important question.
Income Before Tax
Income before tax and income taxes are both reflected on the income statement to show investors the amount of operating profit paid for local, state, and federal taxes. For your reference, here is a list of corporate income tax rates.
Income before tax and income taxes are both reflected on the income statement to show investors the amount of operating profit paid for local, state, and federal taxes. For your reference, here is a list of corporate income tax rates.
Who Wants to be a Millionaire Lesson 1
Who wants to be Rich Quiz Game: who wants to be a millionaire quiz test lesson 1 test your knowledge stock market
Who wants to be Rich Quiz Game: who wants to be a millionaire quiz test lesson 1 test your knowledge stock market
Warren Buffett
Warren Buffett is the arguably the greatest investor in history. Warren Buffett is Chairman of Berkshire Hathaway.
Warren Buffett is the arguably the greatest investor in history. Warren Buffett is Chairman of Berkshire Hathaway.
Bonds 101
A bond is simply an IOU in which an investor agrees to loan money to a company or government in exchange for a predetermined interest rate. There are many different types of bonds.
A bond is simply an IOU in which an investor agrees to loan money to a company or government in exchange for a predetermined interest rate. There are many different types of bonds.