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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
All About Dividends
A stock dividend is a pro-rata distribution of additional shares of a company’s stock to owners of the common stock. A company may opt for stock dividends for a number of reasons. This article explains stock dividends, how they are issued and how they affect the investor.
A stock dividend is a pro-rata distribution of additional shares of a company’s stock to owners of the common stock. A company may opt for stock dividends for a number of reasons. This article explains stock dividends, how they are issued and how they affect the investor.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Intro to Stock Trading
Stop orders and stop limit orders are used to systematically lock in profits while protecting against decreases in the price of a stock. Stop orders and stop limit orders often require an investor to pay an additional commission.
Stop orders and stop limit orders are used to systematically lock in profits while protecting against decreases in the price of a stock. Stop orders and stop limit orders often require an investor to pay an additional commission.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
What is Stock
Stock is ownership in a company. The most popular types are common stock and preferred stock.
Stock is ownership in a company. The most popular types are common stock and preferred stock.
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.
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.
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.
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.
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.
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.
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.
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.
Comparing Depreciation Methods
Depending on which depreciation method is used, the depreciation charges incurred on the income statement can vary greatly. Comparing depreciation methods can make analyzing companies in asset intensive industries much easier.
Depending on which depreciation method is used, the depreciation charges incurred on the income statement can vary greatly. Comparing depreciation methods can make analyzing companies in asset intensive industries much easier.
What is a Dividend
A dividend is a portion of corporate earnings paid out to shareholders. Most dividends are paid quarterly.
A dividend is a portion of corporate earnings paid out to shareholders. Most dividends are paid quarterly.
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.
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.
How to Beat Credit Card Debt
One of the biggest challenges for new investors to overcome when they first decide to start building wealth and putting money away for their future is a looming mountain of credit card debt built up over several years. The good news is that you can beat your credit card debt and you can beat it in a few years or less, giving you a new start in your financial life. These 10 keys to overcoming your credit card debt are designed to give you the knowledge you need to begin the journey.
One of the biggest challenges for new investors to overcome when they first decide to start building wealth and putting money away for their future is a looming mountain of credit card debt built up over several years. The good news is that you can beat your credit card debt and you can beat it in a few years or less, giving you a new start in your financial life. These 10 keys to overcoming your credit card debt are designed to give you the knowledge you need to begin the journey.
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.
P/E Ratio: Relative Value
The p/e ratio, short for price earnings ratio, was made famous by Benjamin Graham. The p/e ratio is a financial measurement of a company's current earnings per share, eps, compared to the price per share.
The p/e ratio, short for price earnings ratio, was made famous by Benjamin Graham. The p/e ratio is a financial measurement of a company's current earnings per share, eps, compared to the price per share.
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.
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.
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.
Series EE Savings Bonds
The Series EE savings bond is one of the most popular savings bonds in the history of the United States. Issued by the Treasury department, you can invest in Series EE savings bonds either by purchasing electronic versions or physical paper bond certificates. Depending upon your choice, the rules are different. Sit back and let us teach you everything you need to know about Series EE savings bonds in this great bond investing article.
The Series EE savings bond is one of the most popular savings bonds in the history of the United States. Issued by the Treasury department, you can invest in Series EE savings bonds either by purchasing electronic versions or physical paper bond certificates. Depending upon your choice, the rules are different. Sit back and let us teach you everything you need to know about Series EE savings bonds in this great bond investing article.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
Warren Buffett Timeline
A chronological timeline of the life of Warren Buffett, Chairman and CEO of Berkshire Hathaway. Section 1 covers 1930-1956.
A chronological timeline of the life of Warren Buffett, Chairman and CEO of Berkshire Hathaway. Section 1 covers 1930-1956.
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.
Formulas for Income Statement
These financial formulas, calculations and ratios can be used when analyzing an income statement.
These financial formulas, calculations and ratios can be used when analyzing an income statement.
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.
Asset Allocation Intro
Asset allocation is the practice of diversifying assets between different asset classes. This article explains the theory behind asset allocation and provides sample allocation models for various life stages including early career and retirement.
Asset allocation is the practice of diversifying assets between different asset classes. This article explains the theory behind asset allocation and provides sample allocation models for various life stages including early career and retirement.
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.
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.
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.
How To Buy a Single Share of Stock as a Gift
One of the most common questions I get is
One of the most common questions I get is
Flavors of Preferred Stock
Preferred stock is a hybrid between common stock and a bond. There are numerous classes of preferred stock including voting, non voting, cumulative, non cumulative, convertible and participating. This article explains the differences between each type of preferred stock class as well as the financial implictaions. Preferred stock is a mix between regular common stock and a bond that usually pays a high dividend. Preferred stock may or may not make sense for your fixed income portfolio.
Preferred stock is a hybrid between common stock and a bond. There are numerous classes of preferred stock including voting, non voting, cumulative, non cumulative, convertible and participating. This article explains the differences between each type of preferred stock class as well as the financial implictaions. Preferred stock is a mix between regular common stock and a bond that usually pays a high dividend. Preferred stock may or may not make sense for your fixed income portfolio.
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.
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.
Sam Walton
Sam Walton, founder of Wal-Mart and one-time richest man in the world, left an estimated $100 billion fortune to his wife and four children when he died. In this profile, we examine interesting facts about Walton, his educational background, and foray into the discount retailing sector following a stint as a Ben Frankling franchisee. If you are interested in Sam Walton, this profile can serve as a quick cheat-sheet.
Sam Walton, founder of Wal-Mart and one-time richest man in the world, left an estimated $100 billion fortune to his wife and four children when he died. In this profile, we examine interesting facts about Walton, his educational background, and foray into the discount retailing sector following a stint as a Ben Frankling franchisee. If you are interested in Sam Walton, this profile can serve as a quick cheat-sheet.
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.
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.
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.
Who Wants Investing Lesson 1 Quiz Calculate Stock Price
Who Wants Investing Lesson 1 Calculate Stock Price
Who Wants Investing Lesson 1 Calculate Stock Price
Price to Cash Flow Ratio
Some investors prefer to focus on a financial ratio known the price to cash flow ratio instead of the more famous price to earnings ratio (or p/e ratio for short). Why do they prefer the price to cash flow ratio and why is it better for some companies and industry than its more famous counterpart? Sit back, relax, and grab a cup of coffee because you're about to learn everything you ever wanted to know about why it is more important than the price to earnings ratio.
Some investors prefer to focus on a financial ratio known the price to cash flow ratio instead of the more famous price to earnings ratio (or p/e ratio for short). Why do they prefer the price to cash flow ratio and why is it better for some companies and industry than its more famous counterpart? Sit back, relax, and grab a cup of coffee because you're about to learn everything you ever wanted to know about why it is more important than the price to earnings ratio.
First Three Lines
Analyzing the first three lines of the income statement, including total revenue, cost of goods sold, gross profit, and gross profit margin.
Analyzing the first three lines of the income statement, including total revenue, cost of goods sold, gross profit, and gross profit margin.
What is a Bloomberg Terminal
Many new investors may not know about a Bloomberg terminal or Bloomberg machine as they are sometimes known. These subscriptions are not actually a piece of hardware, but rather a subscription to a database of financial, market, and regulatory data on tens of thousands of companies and assets.
Many new investors may not know about a Bloomberg terminal or Bloomberg machine as they are sometimes known. These subscriptions are not actually a piece of hardware, but rather a subscription to a database of financial, market, and regulatory data on tens of thousands of companies and assets.
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.
Capital Gains Tax Holding P...
Your capital gains tax rate is largely determined by length of holding period for each of your investments. This article explains the capital gains tax rate for each of the three holding periods the IRS recognizes.
Your capital gains tax rate is largely determined by length of holding period for each of your investments. This article explains the capital gains tax rate for each of the three holding periods the IRS recognizes.
Preferred Stock Income Statmnt
Preferred stock is a mix between common stock and a bond. Preferred stock holders receive a guaranteed dividend in exchange for limited capital gains.
Preferred stock is a mix between common stock and a bond. Preferred stock holders receive a guaranteed dividend in exchange for limited capital gains.
EBITDA on the Income Statement
Earnings before interest, tax, depreciation and amortization, also known as EBITDA, is commonly mistaken for a measurement of cash flow. EBITDA came into existence during the 1980s during the leveraged buyout craze that swept Wall Street.
Earnings before interest, tax, depreciation and amortization, also known as EBITDA, is commonly mistaken for a measurement of cash flow. EBITDA came into existence during the 1980s during the leveraged buyout craze that swept Wall Street.
Share Repurchase Income Stmnt
Share repurchase programs increase ownership and earnings per share by reducing the number of shares outstanding.
Share repurchase programs increase ownership and earnings per share by reducing the number of shares outstanding.
Introduction to Wall Street
Learn various investing vocabulary and terms in this second investing lesson.
Learn various investing vocabulary and terms in this second investing lesson.
Continuing vs Discontinued
Discontinued operations are the businesses a company plans on being engaged in for the foreseeable future. Discontinued operations are businesses a company has discarded, sold, or shut down and does not expect to generate revenue or profit in the future.
Discontinued operations are the businesses a company plans on being engaged in for the foreseeable future. Discontinued operations are businesses a company has discarded, sold, or shut down and does not expect to generate revenue or profit in the future.
Warren Buffett Photo Gallery - Warren at Work
Warren Buffett working at his desk: photo gallery number warren buffett oracle of omaha number 1 titans
Warren Buffett working at his desk: photo gallery number warren buffett oracle of omaha number 1 titans
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.
Dow Futures
Have you ever picked up the newspaper or watched CNBC and wondered what the reporters were talking about when they discussed the Dow Futures and the influence they would have on the direction of the stock market? This will service as a quick introduction to Dow Futures and help you understand a little bit about them.
Have you ever picked up the newspaper or watched CNBC and wondered what the reporters were talking about when they discussed the Dow Futures and the influence they would have on the direction of the stock market? This will service as a quick introduction to Dow Futures and help you understand a little bit about them.
Common Shares
Common Preferred and Convertible Shares are carried on the balance sheet. Learn more in Investing Lesson 3
Common Preferred and Convertible Shares are carried on the balance sheet. Learn more in Investing Lesson 3
What are Extraordinary Items on the Income Statement
Extraordinary items are events that affected a company's earnings and or profitability and are not expected to reoccur.
Extraordinary items are events that affected a company's earnings and or profitability and are not expected to reoccur.
Warren Buffett Books and Re...
Warren Buffett has made a name as the most successful investor of the twentieth century. A student and friend of Benjamin Graham, the father of value investing, Buffett has managed to amass one of the largest fortunes in history through his company, Berkshire Hathaway. Using these books and resources you can now find out about his biography, investing techniques, and thoughts on business.
Warren Buffett has made a name as the most successful investor of the twentieth century. A student and friend of Benjamin Graham, the father of value investing, Buffett has managed to amass one of the largest fortunes in history through his company, Berkshire Hathaway. Using these books and resources you can now find out about his biography, investing techniques, and thoughts on business.
Together Balance Sheet
The balance sheet financial ratios are important parts of valuing a stock or analyzing a small business.
The balance sheet financial ratios are important parts of valuing a stock or analyzing a small business.
Understanding Your 403(b) Plan
The 403(b) plan is a type of qualified retirement plan offered to employees of non-profits, educational institutions, and some self-employed ministers. The 403(b) plan is often compared to a 401(k) plan because it shares many of the same characteristics, withdrawals, contribution limits, tax rules, and investment choices.
The 403(b) plan is a type of qualified retirement plan offered to employees of non-profits, educational institutions, and some self-employed ministers. The 403(b) plan is often compared to a 401(k) plan because it shares many of the same characteristics, withdrawals, contribution limits, tax rules, and investment choices.
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.
Understanding Insider Tra...
Insider trading is the act of profiting off of non-public information by those with a fidicuary duty to the company and its shareholders. This article explains what insider trading is, how it is punishable and its history.
Insider trading is the act of profiting off of non-public information by those with a fidicuary duty to the company and its shareholders. This article explains what insider trading is, how it is punishable and its history.
Starbucks Franchise Value
The Starbucks franchise is an example of an excellent business. This article discusses the value of the coffee company and its performance as an investment.
The Starbucks franchise is an example of an excellent business. This article discusses the value of the coffee company and its performance as an investment.
Traditional IRA
Traditional individual retirement accounts, or traditional IRA for short, is a type of investment account which allows money to grow tax-free until the account owner turns 59 1/2. This FAQ explains the benefits and drawbacks of a traditional IRA.
Traditional individual retirement accounts, or traditional IRA for short, is a type of investment account which allows money to grow tax-free until the account owner turns 59 1/2. This FAQ explains the benefits and drawbacks of a traditional IRA.
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.
How to Start Investing
If you are knew to Wall Street, you may wonder how to start investing. This to-the-point article lists the ways to begin investing, as well as provides links to more than half a dozen other articles and resources that will make the process of starting to invest easier and more enjoyable.
If you are knew to Wall Street, you may wonder how to start investing. This to-the-point article lists the ways to begin investing, as well as provides links to more than half a dozen other articles and resources that will make the process of starting to invest easier and more enjoyable.
Property, Plant and Equipment
Property, plant and equipment on the balance sheet represents fixed assets purchased for a company's operations such as factories, machines, computers, and other necessary assets.
Property, plant and equipment on the balance sheet represents fixed assets purchased for a company's operations such as factories, machines, computers, and other necessary assets.
Average Household Income
Household income in the United States is perhaps the best way to estimate the standard of living and find out where you and your family fall compare to your neighbors. This chart of household income in the United States was provided by the United States Census and based upon the 2005 data.
Household income in the United States is perhaps the best way to estimate the standard of living and find out where you and your family fall compare to your neighbors. This chart of household income in the United States was provided by the United States Census and based upon the 2005 data.
Deferred Charges
On a balance sheet, deferred long term asset charges are used to spread out asset charges over longer periods of time, as opposed to having them affect the company's earnings in a single quarter or year.
On a balance sheet, deferred long term asset charges are used to spread out asset charges over longer periods of time, as opposed to having them affect the company's earnings in a single quarter or year.
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.
Series EE Interest Rates
The Series EE savings bonds interest rates are determined by modifying the 10 year U.S. Treasury bond for the benefits offered to savings bond holders such as the option to defer taxes and exchange bonds for other series types. The interest rate on Series EE savings bonds is set twice per year.
The Series EE savings bonds interest rates are determined by modifying the 10 year U.S. Treasury bond for the benefits offered to savings bond holders such as the option to defer taxes and exchange bonds for other series types. The interest rate on Series EE savings bonds is set twice per year.
Determining Dividend Payout
In the days of falling stock prices, Board of Directors will often begin to pay dividends to help stabilize the company’s stock. This article discusses when a company should retain its earnings and when it should pay them out as dividends.
In the days of falling stock prices, Board of Directors will often begin to pay dividends to help stabilize the company’s stock. This article discusses when a company should retain its earnings and when it should pay them out as dividends.
Custodial & Safe Keeping Fees
So-called safe keeping fees and custodial fees from your broker or bank are nothing short of a rip off. You should not have to pay safe keeping fees or custodial fees. To find out why, this article will explain.
So-called safe keeping fees and custodial fees from your broker or bank are nothing short of a rip off. You should not have to pay safe keeping fees or custodial fees. To find out why, this article will explain.
Teaching Your Teen Financia...
Teaching your teen financial responsibility is one of the most important lessons you can instill while they are still living at home. Teach your teen how to choose a college wisely, avoid credit card debt, and use financial planning software.
Teaching your teen financial responsibility is one of the most important lessons you can instill while they are still living at home. Teach your teen how to choose a college wisely, avoid credit card debt, and use financial planning software.
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.
Mr. Market
Mr Market is the famous metaphor created by the father of value investor Benjamin Graham.
Mr Market is the famous metaphor created by the father of value investor Benjamin Graham.
Who Wants Investing Lesson 1 Quiz Calculate Dividend Yield
Who Wants Investing Lesson 1 Calculate Dividend Yield
Who Wants Investing Lesson 1 Calculate Dividend Yield
Who Wants Investing Lesson 1 Quiz Raise Money
Who Wants Investing Lesson 1 Quiz Raise Money: library quiz issue bonds true issue buy stock stock split
Who Wants Investing Lesson 1 Quiz Raise Money: library quiz issue bonds true issue buy stock stock split
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
The Intelligent Investor Fourth Edition by Benjamin Graham - Product Review
Read a product summary and review of The Intelligent Investor by Benjamin Graham
Read a product summary and review of The Intelligent Investor by Benjamin Graham