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Investing for Beginners: Most Popular Articles

These articles are the most popular over the last month.
A Beginner's Guide to Making Money from 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 to Become Wealthy
These nine financial keys will help you get on the road to financial freedom, build wealth, and become rich.
A Beginner's Guide to Getting 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 Turnover
Inventory turns and inventory turnover is one of the easiest financial ratios to calculate using information found on the income statement and balance sheet.
Working Capital
Working capital on the balance sheet is calculated by taking current assets and subtracting the current liabilities.
A Quick Overview of the Straight Line...
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.
Traditional IRA vs. Roth IRA - Which is Better
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.
Stock Analysis 101: Calculating Gross Profit...
Gross profit margin for an income statement can be calculated by dividing gross profit by total sales. The gros margin shows the percentage of revenue that is used in the production process.
What Is Considered a Good Rate of Return on...
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.
The Complete Beginner's Guide to Investing in...
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.
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.
Understanding a 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.
Top 10 Investing Books
These top ten investing books will help lay a firm foundation for your personal portfolio management abilities.
A Beginner's Guide to Investing in Your 401k...
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. Page 3.
A Beginner's Guide to How Dividends Work
A company's board of directors declares a dividend and establishes a date of record (the ex-dividend date) and a payment date. The dividend can take several forms including cash, stock or property. This will walk you through the definition of the ex-dividend date, the dividend declaration date, and the dividend payment date. Page 2.
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.
What Is A Trust Fund?
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Traditional IRA and Roth IRA Contribution Limits
IRA contribution limits vary by year and age. This article charts the maximum allowable contribution to your IRA each year.
Warren Buffett Biography
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.
7 Rules to Build Wealth and Amass Money
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 Complete Beginner's Guide to Saving Money
Here are some easy saving money tips for new investors who want to take some of the pain out of putting aside cash to build the funds available for investing.
Introduction to 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.
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.
Investing Lesson 3: Analyzing a Balance Sheet
Learning to read and analyze 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.
P/E Ratio: Using the Price-to-Earnings Ratio as...
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.
Net Profit Margin
Net profit margin is a financial ratio comparing a company's net profit after taxes to revenue. IF you want to know how to calculate the net profit margin, here are the numbers and formula you need.
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.
Eight Ways to Avoid the 10% Early Withdrawal...
Learn eight ways to avoid the early withdrawal fee on your individual retirement account (IRA) in this article from Investing for Beginners.
Double Declining Balance Depreciation Method
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.
What Is Stock?
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Return on Equity (ROE)
Return on Equity, ROE, tells investors how much profit a company relative to the total amount of shareholder equity on the balance sheet. A high return on equity, or ROE, 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.
Current Liabilities
Current liabilities on the balance sheet represent all of the liabilities or debts a company owes for the next twelve months to suppliers, vendors, banks, and other institutions. Current liabilities are an important part of measuring a company's liquidity position.
Should I Invest in Real Estate or 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.
Before You Open a Brokerage 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.
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.
A Lesson on Income Statement Analysis
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.
Surprisingly Simple Guide to 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.
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.
Capital Gains Tax Guide for Investors
Real estate capital gains taxes have some of the biggest loopholes and tax breaks for homeowners and other investors of any asset class including stocks, bonds, and mutual funds. This guide to real estate capital gains tax rates was designed to help you understand some of the rules that determine how much money you owe the IRS in taxes when you sell a home or other property. Page 6.
Table of Contents for Understanding the Balance...
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.
Assets, Liabilities & Shareholder Equity on the...
The best way to understand the balance sheet is to see an actual real-world 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.
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.
Buying Stock without a Broker
You can buy stock without a broker by taking advantage of direct stock purchase plans, dividend reinvestment plans, and other specialty accounts.
Current Assets on the Balance Sheet
Current assets on the balance sheet represent cash, cash equivalents, short-term investments, and other assets that can be quickly converted into cash, typically within a year or less.
How Much Money Does it Take To Be Considered...
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.
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.
An Introduction 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.
Depreciation and Amortization on the Income...
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.
The Two Types of Investments You Can Make In a...
When you invest in a small business, you have two choices of the type of position you want to take: You can make an equity investment or you can make a debt investment.
Investing Lesson 1 - Introduction to the Stock...
Investing lesson is an introduction to the stock market. The lesson aims to give a basic understanding of the market to new investors.
A Guide to Mutual Funds
Mutual funds have made investing easier for millions of Americans. This article explains mutual fund basics, benefits, and selection.
Negative Working Capital
Negative working capital is possible for companies with high inventory turnover.
How to Amass the First $100,000
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.
Retained Earnings on the Balance Sheet
Retained earnings are the profits a company has reinvested in itself from past operations, which you can find in the shareholder equity section of the balance sheet.
10 Secrets of the Capitalist Class
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.
Understanding Inventory on the Balance Sheet
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's the Difference Between Basic and Diluted...
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.
The Four Ways to Make Money
According to research, only 10% of American millionaires inherited their money with the rest going out and earning it. How did they make money? In this article, we'll discuss the four ways to make money that serve as the foundation of nearly every fortune in the history of the world other than inheritance, theft, and other methods that simply aren't practical to the average person.
Long Term Debt and the Debt to Equity Ratio on...
Long term debt and the debt to equity ratio are important indications of the financial stability of a company that can be found on or calculated using the balance sheet.
What to Look For in an Investment
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.
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.
Return on Assets (ROA)
Return on Assets (sometimes abbreviated as ROA for short) tells an investor how much profit a company generated for each dollar of assets invested in the business.
Operating Income and Operating Profit Margin
Operating income is a measurement of the money a company generated from its own operations, while operating margin is a financial ratio that tells you how much profit a business earns before taxes for every one dollar in sales.
What Is Gross Profit?
Gross profit on the income statement is the total revenue subtracted by the cost of generating that revenue, or cost of goods sold.
How to Get a Company's Annual Report, 10K, and...
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.
Real Estate Investing 101
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How to Negotiate a Credit Card Debt Settlement
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.
Best Places to Invest Down Payment Money
Saving for a home is hard enough. With the potential for investment losses lurking bheind every corner, where is the safest place to invest your down payment money? In this article, we address three or four of safest, most practical places to invest your down payment money so you can focus on affording the house you want - not recovering from investment losses.
Return on Equity - The 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 to perform your own DuPont analysis.
What Are the Effects of Inflation?
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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.
10 Steps to Building a Complete Financial...
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.
Investor's Guide to the Dividend Tax
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.
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.
Evaluating Investment Performance
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.
New to Investing? Check Out This Complete Guide...
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.
Accounts Receivables
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.
The Current Ratio
The current ratio can be calculated from the balance sheet as a test of a company's liquidity. To find this financial ratio ratio, you need to divide the current assets by current liabilities.
8 Secrets to Achieving 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.
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.
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.
Money Market vs. Certificate of Deposit
When investing your idle cash, money market accounts and certificates of deposit are two of the most popular choices.
Income Investing for Beginners - a 10 Part...
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.
What is a Market Maker and How do Market Makers...
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.
Treasury Stock
Treasury stock is listed under shareholder equity on the balance sheet. It represents the stock a company has issued and subsequently reacquired.
Intro to 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 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.
The Beginner's Guide to Delaware LLCs
A Delaware LLC is a limited liability company incorporated in the state of Delaware. Many investors prefer a Delaware LLC because it offers privacy benefits, special tax benefits, and much 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.
What Is a Balance Sheet?
What is a balance sheet? A balance sheet is the record of a company's assets and liabilities.
Where to Begin: Investing 101
If you want to start investing but have no idea where to begin, this step-by-step guide can help you understand the basics of building a portfolio.
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.
What Is 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.
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.
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.
How Falling Stock Prices Can Make You Rich
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.
What Is an Investment Bank
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.
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.
101 Things Every New Investor Should Know About...
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.
Series I Savings Bond Guide
The Series I savings bond from the United States Treasury is a great way for new investors to protect themselves from inflation. Although the series I bonds are a type of zero coupon savings bond, meaning you won't receive interest checks in the mail but rather your interest income will be added to the value of the bond and compound until you sell the savings bond back to the United States Government, they provide unique protections and a guarantee that they will never lose money.
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.
Intro to Stock Trading
This basic tutorial on stock trading provides twelve different types of stock trading orders investors can use to help manage their portfolio.
Working Capital Per Dollar of Sales
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.
Minority Interest on the 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.
Making Money from Real Estate Investing
Making money in real estate and from real estate investing comes down to three sources: An increase in property values, rental income collected by leasing out properties to tenants, and profits generated from business activities.
Types of Real Estate Investments
There are many different types of real estate investments that most new investors don't think about when they begin to consider acquiring property. This brief list of the major categories of real estate investment used by professional investors was designed to help you think about potential areas you may have overlooked.
The Benefits of Owning Blue Chip Stocks
There are a number of benefits to investing in blue chip stocks, such as a history of rising dividends and growing profits.
How To Calculate the Rule of 72
The Rule of 72 is a financial trick that allows investors to project the rate of return they must earn in order to double their money over a given period of time.
Operating Expense on the Income Statement
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.
The Three Primary Types of Financial 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.
Warren Buffett Timeline
A chronological timeline of the life of Warren Buffett, Chairman and CEO of Berkshire Hathaway. Section 1 covers 1930-1956.
What is the Preemptive Right?
The preemptive right is the right belonging to existing shareholders of a corporation to avoid involuntary dilution of their ownership stake by giving them the chance to buy a proportional interest of any future issuance of common stock. The preemptive right is an anti-dilutive provision and is also known as the subscription right or subscription privilege.
Prepaid Expenses and Other Current Assets
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.
Index Funds - If You Can’t Beat...
Low cost index funds can be a great investment, providing superior returns to actively managed mutual funds over the long term. This article explains the basics and benefits of investing in index funds.
How Much Money Do I Need to Save to Become a...
This quick guide can help you figure out how long it will take for you to save $1 million based upon your age and the total amount of time you can keep your capital parked in good investments.
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.
Shareholder Equity
Shareholder equity is the difference between total assets and total liabilities on the balance sheet.
IRA Transfers vs. Rollovers: What Is The...
You may not know the difference between an IRA transfer and an IRA rollover but there could be some big consequences if you make a mistake. Educate yourself to help avoid a potentially huge tax bite when moving your IRA investments from one firm to another.
What Is a 401(k) Contribution Limit?
You can't just save as much money as you want in your 401(k) because Congress has put contribution limits on your annual elective deferrals. This year, for example, the 401(k) contribution limits are $17,000 for employees, an extra $5,500 for those 50 years or older, and $50,000 overall including employer contributions in the form of matching funds and other compensation.
The Benefits of Stock 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.
What is a 10K and Why Should an Investor Read It?
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
New Investor's Guide to Limited Liability...
Limited Liability Companies, or LLCs, have become so prevalent in the past twenty years among investors, corporations, and families seeking to protect their assets that it is important for you, as a new investor, to understand how they work, why you should care, and some of the tax implications.
4 Popular Types of IRAs You Might Want to...
There are four popular types of IRAs, each of which have their own unique IRA contribution limit rules and terms. You should consider opening one.
How Families Can Invest Together with an LLC
One of the best uses of a limited liability company is as a vehicle for families to pool their money together to invest alongside one another. The benefits of a family pooling their money through a limited liability company to invest in everything from stocks, bonds, and real estate to mutual funds and start-up businesses come mostly from the power of an LLC operating agreement.
Receivable Turns
To calculate receivable turns, divide credit sales by the average receivables for the period.
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.
If a Stock Doesn't Pay Dividends, How Can It Be...
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.
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.
Investing Lesson 1 - An Introduction to the...
The stock market exists to provide capital to companies wishing to expand operations. Page 3.
Six Steps to Retire Rich
These simple six steps to retire rich will help you ensure your golden years are spent comfortably. This article is part of the investing retirement center.
Real Estate Investing Guide
This real estate investing guide was written for new investors who want to know how real estate investing can benefit them. It explains some of the things that are important when you start the process of acquiring properties such as rental houses, as well as the importance of different ownership structures such as limited liability companies. It is recommended for any new investor interested in real estate investing or owning property.
Selling, General and Administrative 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.
How to Utilize the Berkshire Hathaway Wealth...
One of the least understood secrets behind the success of Berkshire Hathaway and its rise from an $8 stock in the 1960’s to more than $118,000 per share today, is that Buffett focuses on two value “buckets” as he put it in a recent shareholder letter. The first bucket consists of the operating businesses in which the company holds a controlling stake and the second of marketable securities such as stocks, bonds, mutual funds, et cetera, most of which are held through the insurance subsidiaries.
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.
Goodwill and Amortization Charges
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.
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.
Why Do Stock Prices Fluctuate?
Have you ever wondered what determines stock price? This FAQ explains why stock prices fluctuate.
Simple IRA
The term Simple IRA is actually an acronym for Savings Incentive Match Plan for Employees Individual Retirement Account. It is designed to be more affordable to maintain than other retirement plans. In fact, the Simple IRA can allow a business owner to save and invest more money than they could through an ordinary retirement account.
Enterprise Value
Enterprise value is the takeover value of a company and it is calculated by adding a corporation's market capitalization, preferred stock, and outstanding debt together and then subtracting out the cash and cash equivalents.
Understanding Your Rollover IRA
When you change jobs, one option is to move your old 401(k) plan into a rollover IRA with a brokerage firm. This offers several advantages because a rollover IRA will allow you to invest in stocks, bonds, mutual funds, and other assets that are simply not available through more employer sponsored retirement plans. At the same time, you get to enjoy the tax benefits of a retirement plan by compounding your wealth out of the grasp of Uncle Sam.
The Federal Reserve and Interest Rates
This article is an introduction to the Federal Reserve and interest rates including the funds rate and the discount rate.
Asset Turnover
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.
What Is a Blue Chip?
This FAQ provides blue chip stock definitions, examples and links.
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.
Limited Liability Companies for Beginners
A limited liability company or LLC is a special type of company that gives the investors limited liability and provides benefits such as pass-through taxation to avoid the double taxation of dividends.
Table of Contents for Investing 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.
Muni Bonds: Do They Make Sense for Your...
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.
The 5 Categories of Financial Ratios
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.
The Disadvantages of Using a Trust Fund to Pass...
Trust funds can be a great tool but they do have some major disadvantages that you should consider before using one.
Understanding the Limited Liability Limited...
A limited liability limited partnership or LLLP for short is a new form of limited partnership that allows the general partner to avoid personal liability for company debts. Roughly half of the states in the United States allow for the creation of limited liability limited partnerships and some high profile businesses, such as CNN, have opted to take advantage of it.

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