Updated Articles and Resources
- 10 Secrets of the Capitalist ClassCreated: 2009-11-09 @ 12:52:50 EST Updated: 2009-11-09 @ 21:03:03 EST
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 fa… - Don’t Join the Capital Gains Cult - Why You Should Focus on Di…Created: 2009-11-08 @ 02:48:52 EST Updated: 2009-11-08 @ 03:07:53 EST
A common mistake of new investors is to focus on capital gains instead of cash dividends, especially in light of research that shows that 99 percent of after inflation gains in wealth come from rei… - Why We Aren't Seeing Inflation YetCreated: 2009-11-06 @ 01:41:30 EST
Why aren't we seeing inflation or hyper inflation with the trillions of dollars the United States government is printing? The answer has to do with the M1, M2, and M3 money multiplier. By underst… - What Are Patriot Bonds?Created: 2009-10-15 @ 02:14:24 EDT Updated: 2009-10-15 @ 02:16:57 EDT
Have you ever wondered what Patriot bonds are or how they are different from Series EE savings bonds?… - $10,000 Series EE Savings Bond CertificateCreated: 2009-10-14 @ 17:38:50 EDT Updated: 2009-10-15 @ 01:47:03 EDT
The $10,000 Series EE savings bonds cost $5,000 when purchased and can earn interest for up to 30 years. The current paper bond certificate features James Wilson to the left of an image of Indepen… - 5,000 Dollar Series EE Savings Bond Certificate…Created: 2009-10-14 @ 16:51:19 EDT Updated: 2009-10-15 @ 01:35:39 EDT
The $5,000 EE savings bond features Paul Revere and can be part of your overall fixed income investment portfolio. Typically, paper bonds in the EE family are bought at fifty percent discounts to … - 1,000 Dollar Series EE Savings Bond with Benjamin Franklin…Created: 2009-10-14 @ 16:44:40 EDT Updated: 2009-10-15 @ 01:03:03 EDT
The $1,000 Series EE savings bond from the United States Treasury features Benjamin Franklin and a watermark of Independence Hall. The paper Series EE bonds are issued at fifty percent of face val… - 500 Dollar United States Treasury Bond Series EE…Created: 2009-10-14 @ 16:37:35 EDT Updated: 2009-10-15 @ 01:02:46 EDT
Pictures of Series EE savings bonds show you all of the denominations available to investors in this photo gallery. We have pictures of all of the Series EE savings bonds… - $75 Series EE Savings Bond CertificateCreated: 2009-10-14 @ 16:24:53 EDT Updated: 2009-10-14 @ 22:47:09 EDT
The $75 Series EE savings bond features John Adams, the nation's second president, and a picture of Independence Hall. Today, the Series EE bonds contain the words Patriot Bond on them… - Series EE Savings Bonds Photo GalleryCreated: 2009-10-14 @ 16:20:14 EDT Updated: 2009-10-14 @ 17:41:27 EDT
Pictures of Series EE savings bonds show you all of the denominations available to investors in this photo gallery. We have pictures of all of the Series EE savings bonds… - $200 Series EE Savings Bond Certificate from the United States Treas…Created: 2009-10-14 @ 16:18:07 EDT Updated: 2009-10-15 @ 00:38:42 EDT
The $200 savings bond features James Madison and is part of the Series EE family of savings bonds. Each bond arrives within 15 business days and can earn interest for up to 30 years… - Series EE Savings Bond $100 CertificateCreated: 2009-10-14 @ 16:14:32 EDT Updated: 2009-10-14 @ 22:45:26 EDT
The $100 savings bond from the United States Treasury is issued as part of the Series EE savings bond family and features Thomas Jefferson… - Series EE Savings Bonds Photo GalleryCreated: 2009-10-14 @ 16:14:20 EDT Updated: 2009-10-15 @ 00:26:22 EDT
Pictures of Series EE savings bonds show you all of the denominations available to investors in this photo gallery. We have pictures of all of the Series EE savings bonds… - How Do I Invest in Series EE Savings Bonds?Created: 2009-10-14 @ 02:44:42 EDT Updated: 2009-10-14 @ 03:26:32 EDT
If you've wanted to know how you can buy Series EE savings bond then this article is for you. It explains the four ways you can acquire or invest in Series EE savings bonds for your own fixed inco… - Tax Advantages of Series EE Savings BondsCreated: 2009-10-13 @ 21:17:17 EDT Updated: 2009-10-13 @ 23:45:48 EDT
There are substantial tax advantages to investing in series ee savings bonds from the United States treasury. This includes no state or local taxes on series ee bonds, as well as the opportunity t… - Series EE Savings Bonds Interest RatesCreated: 2009-10-13 @ 13:10:46 EDT Updated: 2009-10-13 @ 20:22:22 EDT
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… - Series EE Savings Bonds InvestingCreated: 2009-10-13 @ 12:29:53 EDT Updated: 2009-10-14 @ 03:38:11 EDT
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 purc… - New Investor's Guide to Building WealthCreated: 2009-10-12 @ 19:45:51 EDT Updated: 2009-10-13 @ 00:00:13 EDT
The new investors guide to building wealth is a collection of articles, resources, and tools to help you build your nest egg, generate income, and grow richer through the power of compounding… - Debt and Investing - The Beginner's Guide to Finding Balance Between…Created: 2009-10-12 @ 19:33:01 EDT
Should you pay off your debt or invest? Make extra mortgage payments or contribute to your 401(k)? These questions are just some of the more common ones that new investors need to decide for them… - How to Invest in Real EstateCreated: 2009-10-10 @ 22:40:23 EDT Updated: 2009-10-11 @ 13:16:38 EDT
Investing in real estate is a great way to grow your wealth if done responsibly, with conservative financing, and with an understanding of the tax implications. This beginner's guide is designed t… - How to Invest in Bonds - Your Guide to Understanding and Investing i…Created: 2009-10-10 @ 16:23:04 EDT Updated: 2009-10-10 @ 20:55:31 EDT
Bonds are a type of investment that results in an investor lending money to the bond issuer in exchange for interest payments. There are many types of bonds including municipal bonds, commercial b… - 401(k) Investing - Investing Through Your 401(k)…Created: 2009-10-10 @ 00:34:14 EDT Updated: 2009-10-10 @ 22:34:44 EDT
Learn everything you need to know about your 401(k) account including 401(k) contribution limits, some tax rules, 401(k) withdrawal penalties, and more… - Balance Sheet Analysis - Understanding the Balance Sheet…Created: 2009-10-09 @ 16:12:48 EDT
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 annua… - Analyzing a Balance Sheet - Investing Lesson 3…Created: 2009-09-23 @ 01:48:39 EDT Updated: 2009-09-23 @ 13:43:21 EDT
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 i… - Epilogue for Simon TransportationCreated: 2009-09-23 @ 01:37:40 EDT Updated: 2009-09-23 @ 01:37:39 EDT
Analyzing the balance sheet of Simon Transportation Services could have warned investors of a looming bankruptcy… - Simon Transportation ServicesCreated: 2009-09-23 @ 01:36:52 EDT Updated: 2009-09-23 @ 01:36:51 EDT
Analyzing the balance sheet of Simon Transportation Services could have warned investors of a looming bankruptcy… - Analyzing a Sample Balance Sheet Part II - MicrosoftCreated: 2009-09-23 @ 01:36:01 EDT
This is the second part of the Microsoft balance sheet analysis… - Analyzing Microsoft's Balance SheetCreated: 2009-09-23 @ 01:35:17 EDT Updated: 2009-09-23 @ 01:35:17 EDT
To understand the balance sheet it is easier to analyze a real company. In this example, we do balance sheet analysis on Microsoft… - Formulas and Calculations for Analyzing a Balance Sheet…Created: 2009-09-23 @ 01:33:54 EDT Updated: 2009-09-23 @ 17:55:00 EDT
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… - Other LiabilitiesCreated: 2009-09-23 @ 01:27:10 EDT Updated: 2009-09-23 @ 16:49:21 EDT
Other liabilities on the balance sheet represent items such as accrued expenses, sales tax payable, or other debts… - Intangible AssetsCreated: 2009-09-23 @ 01:22:13 EDT Updated: 2009-09-23 @ 16:06:26 EDT
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 pa… - Prepaid Expenses and Other Current AssetsCreated: 2009-09-23 @ 00:24:18 EDT Updated: 2009-09-23 @ 14:56:47 EDT
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… - Sample Balance Sheet - The Coca-Cola Balance Sheet…Created: 2009-09-23 @ 00:15:24 EDT Updated: 2009-09-23 @ 00:15:24 EDT
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. I… - What Is a Balance SheetCreated: 2009-09-23 @ 00:14:49 EDT Updated: 2009-09-23 @ 13:52:03 EDT
What is a balance sheet? A balance sheet is the record of a company's assets and liabilities… - What the Balance Sheet Can and Cannot Tell You…Created: 2009-09-23 @ 00:06:19 EDT Updated: 2009-09-23 @ 17:56:12 EDT
The balance sheet financial ratios are important parts of valuing a stock or analyzing a small business. … - Retained Earnings on the Balance SheetCreated: 2009-09-22 @ 23:25:07 EDT Updated: 2009-09-23 @ 17:47:49 EDT
Retained earnings are the profits a company has reinvested in itself. Retained earnings are carder on the balance sheet under Shareholder Equity… - Treasury Stock on the Balance SheetCreated: 2009-09-22 @ 23:15:30 EDT Updated: 2009-09-23 @ 17:38:26 EDT
Treasury stock is listed under shareholder equity on the balance sheet. It represents the stock a company has issued and subsequently reacquired… - Capital Surplus and ReservesCreated: 2009-09-22 @ 23:11:43 EDT Updated: 2009-09-23 @ 17:24:23 EDT
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… - Common, Preferred, and Convertible SharesCreated: 2009-09-22 @ 22:55:18 EDT Updated: 2009-09-23 @ 17:05:10 EDT
Common Preferred and Convertible Shares are carried on the balance sheet. Learn more in Investing Lesson 3… - Book Value and Net Tangible AssetsCreated: 2009-09-22 @ 22:51:37 EDT Updated: 2009-09-23 @ 17:00:28 EDT
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. … - Shareholder Equity on the Balance SheetCreated: 2009-09-22 @ 22:32:40 EDT Updated: 2009-09-23 @ 16:55:19 EDT
Shareholder equity is the difference between total assets and total liabilities on the balance sheet… - Minority Interest on the Balance SheetCreated: 2009-09-22 @ 21:28:16 EDT Updated: 2009-09-23 @ 16:51:08 EDT
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… - Long Term Debt and the Debt to Equity Ratio on the Balance Sheet…Created: 2009-09-22 @ 21:21:02 EDT Updated: 2009-09-23 @ 16:46:59 EDT
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… - Deferred Long-Term Asset ChargesCreated: 2009-09-22 @ 21:11:47 EDT Updated: 2009-09-23 @ 16:45:18 EDT
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… - Accounting Goodwill - Analyzing a Balance Sheet…Created: 2009-09-22 @ 20:53:33 EDT Updated: 2009-09-23 @ 16:43:15 EDT
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… - Property, Plant and EquipmentCreated: 2009-09-22 @ 20:49:42 EDT Updated: 2009-09-23 @ 16:02:36 EDT
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… - Long Term Assets and Investments on the Balance Sheet…Created: 2009-09-22 @ 20:47:25 EDT Updated: 2009-09-23 @ 15:58:41 EDT
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 co… - Quick Test RatioCreated: 2009-09-22 @ 20:43:32 EDT Updated: 2009-09-23 @ 15:53:20 EDT
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 Current RatioCreated: 2009-09-22 @ 19:33:18 EDT Updated: 2009-09-23 @ 15:49:26 EDT
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… - Negative Working CapitalCreated: 2009-09-22 @ 19:29:35 EDT Updated: 2009-09-23 @ 15:42:30 EDT
Negative working capital is possible for companies with high inventory turnover. … - Working Capital Per Dollar of SalesCreated: 2009-09-22 @ 19:27:44 EDT Updated: 2009-09-23 @ 15:06:44 EDT
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 - How to Calculate Working Capital on the Balance Sh…Created: 2009-09-22 @ 19:17:17 EDT Updated: 2009-09-23 @ 15:03:03 EDT
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 manageme… - Current Liabilities on the Balance SheetCreated: 2009-09-22 @ 19:14:19 EDT Updated: 2009-09-23 @ 15:00:15 EDT
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 liq… - McDonald's vs. Wendy's - Inventory Turn Examples on the Balance Shee…Created: 2009-09-22 @ 19:08:30 EDT Updated: 2009-09-23 @ 00:23:36 EDT
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 in… - Inventory Turns - How to Calculate Inventory Turnover…Created: 2009-09-22 @ 19:04:23 EDT Updated: 2009-09-23 @ 14:38:25 EDT
Inventory turns and inventory turnover can be calculated for any company using the information found on the income statement and balance sheet… - Inventory on the Balance SheetCreated: 2009-09-22 @ 19:01:35 EDT Updated: 2009-09-23 @ 14:22:23 EDT
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 possib… - Receivable Turns - Calculating Receivable Turns on the Balance Sheet…Created: 2009-09-22 @ 18:58:47 EDT Updated: 2009-09-23 @ 14:05:16 EDT
To calculate receivable turns, divide credit sales by the average receivables for the period. … - Accounts Receivables - Receivables on the Balance Sheet…Created: 2009-09-22 @ 18:52:48 EDT Updated: 2009-09-23 @ 14:02:05 EDT
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 … - Current Assets on the Balance SheetCreated: 2009-09-22 @ 18:50:02 EDT Updated: 2009-09-23 @ 13:58:03 EDT
Cash and cash equivalents and short term investments are carried under current assets on the balance sheet. … - Annual Reports, the 10K, and the 10Q FilingsCreated: 2009-09-22 @ 18:35:33 EDT Updated: 2009-09-23 @ 13:47:09 EDT
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 ot… - Introduction to Investing Lesson 2Created: 2009-09-18 @ 03:30:41 EDT Updated: 2009-09-18 @ 04:15:04 EDT
In this investing lesson, we are going to learn why stocks become over or under valued… - Mr. Market by Benjamin GrahamCreated: 2009-09-18 @ 03:21:14 EDT Updated: 2009-09-18 @ 04:19:29 EDT
Mr Market is the famous metaphor created by the father of value investor Benjamin Graham… - Temporary Problems That Can Lower Stock Prices…Created: 2009-09-18 @ 03:17:33 EDT Updated: 2009-09-18 @ 04:18:55 EDT
Sometimes the short term problems of a company can drive its stock price lower. Learn how to spot a bargain… - Life and Stock PricesCreated: 2009-09-18 @ 03:14:18 EDT Updated: 2009-09-18 @ 04:18:31 EDT
Life can influence stock prices because investors themselves are inherently flawed. In this part of investing lesson two, we discuss how the human element can impact your portfolio… - The Commodity Nature of StocksCreated: 2009-09-18 @ 03:08:52 EDT Updated: 2009-09-18 @ 04:18:07 EDT
Learn about the commodity nature of stocks and it affects stock prices… - The Difference Between an Investor and Speculator…Created: 2009-09-18 @ 03:04:24 EDT Updated: 2009-09-18 @ 04:17:27 EDT
Learn the difference between an investor and a speculator… - How Stock Prices Are DeterminedCreated: 2009-09-18 @ 02:58:52 EDT Updated: 2009-09-18 @ 04:16:26 EDT
Learn what makes stock prices go up and down in this free lesson… - Introduction to Wall StreetCreated: 2009-09-18 @ 02:55:09 EDT Updated: 2009-09-18 @ 04:15:32 EDT
Learn various investing vocabulary and terms in this second investing lesson… - Calculating Gross Profit MarginCreated: 2009-09-18 @ 02:03:10 EDT Updated: 2009-09-18 @ 02:03:10 EDT
Gross Profit Margin can be calculated by dividing gross profit by total revenue. Gross profit margin tells investors the percentage of revenue that is used in the production process… - How to Read an Income Statement - Table of Contents…Created: 2009-09-15 @ 21:25:37 EDT Updated: 2009-09-15 @ 21:25:37 EDT
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 bec… - Analyzing Brown SafetyCreated: 2009-08-27 @ 02:02:56 EDT
One time and extraordinary events on the income statement such as the sale of a business unit, real estate, intangible assets, and marketable securities can increase earnings while the core busines… - Abercrombie and Fitch 2001 Annual Income Statement - Analyzing…Created: 2009-08-27 @ 01:59:54 EDT Updated: 2009-08-27 @ 01:59:54 EDT
Abercrombie and Fitch 2001 annual income statement. Abercrombie and Fitch operated 309 Abercrombie and Fitch stores, 148 abercrombie stores, and 34 Hollister Co stores as of February 2, 2002… - Putting It Together - Analyzing an Income Statement…Created: 2009-08-27 @ 00:51:26 EDT Updated: 2009-08-27 @ 02:14:55 EDT
At this point, you should have the ability to understand the most common entries on the income statement, calculate and compare gross, operating and profit margins, examine depreciation policies an… - Formulas, Calculations and Ratios for the Income Statement…Created: 2009-08-27 @ 00:29:13 EDT Updated: 2009-08-27 @ 02:14:18 EDT
These financial formulas, calculations and ratios can be used when analyzing an income statement… - Projecting Future EarningsCreated: 2009-08-26 @ 23:26:09 EDT Updated: 2009-08-27 @ 02:11:46 EDT
Projecting future earnings when analyzing the income statement is best done by focusing on the past earnings record… - Return on Assets (ROA)Created: 2009-08-26 @ 21:22:21 EDT Updated: 2009-08-27 @ 02:08:17 EDT
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… - Asset TurnoverCreated: 2009-08-26 @ 03:25:37 EDT
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… - Return on Equity (ROE)Created: 2009-08-26 @ 03:19:24 EDT Updated: 2009-08-26 @ 03:19:23 EDT
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 mor… - Share Repurchase Programs - Increasing Earnings Per Share with Stock…Created: 2009-08-26 @ 02:27:00 EDT Updated: 2009-08-26 @ 03:03:16 EDT
Share repurchase programs increase ownership and earnings per share by reducing the number of shares outstanding… - Hiding Share Dilution (Including Underwater Options)…Created: 2009-08-26 @ 02:09:28 EDT Updated: 2009-08-26 @ 02:09:28 EDT
Some companies don't include the possible share dilution from options that are underwater. This occurs when an employee owns options to buy shares at a certain price and due to a sudden drop in sto… - Basic Earnings Per Share (Basic EPS) vs. Diluted Earnings Per Share…Created: 2009-08-26 @ 01:19:37 EDT Updated: 2009-08-26 @ 01:37:51 EDT
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, … - Net Profit MarginCreated: 2009-08-26 @ 00:47:24 EDT Updated: 2009-08-26 @ 00:47:24 EDT
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 Income Applicable to CommonCreated: 2009-08-26 @ 00:25:40 EDT Updated: 2009-08-26 @ 00:32:27 EDT
Net income applicable to common is the bottom line profit the company reported. Analysts divide the net income applicable to common by the total number of shares outstanding to get the basic eps… - Preferred Stock on the Income StatementCreated: 2009-08-25 @ 19:23:19 EDT Updated: 2009-08-26 @ 00:09:39 EDT
Preferred stock is a mix between common stock and a bond. Preferred stock holders receive a guaranteed dividend in exchange for limited capital gains… - Accounting Changes on the Income StatementCreated: 2009-08-25 @ 18:29:02 EDT Updated: 2009-08-25 @ 18:29:02 EDT
GAAP accounting rules give management a large amount of leeway in determining how to report their earnings to shareholders. Accounting changes can be a signal of financial fraud… - Continuing Operations vs Discontinued Operations on the Income State…Created: 2009-08-25 @ 17:59:14 EDT Updated: 2009-08-25 @ 18:12:57 EDT
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 doe… - Unreported or Look Through EarningsCreated: 2009-08-25 @ 17:56:38 EDT Updated: 2009-08-25 @ 17:56:37 EDT
Unreported or look through earnings are the profits that belong to you that are not paid out in the form of a dividend. An investor should put together a portfolio with the highest possible look th… - Minority Interests on the Income Statement, the Cost Method, Equity …Created: 2009-08-25 @ 17:26:36 EDT Updated: 2009-08-25 @ 17:34:52 EDT
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… - Income Before Tax and Income Taxes on the Income Statement…Created: 2009-08-25 @ 16:19:13 EDT Updated: 2009-08-25 @ 16:46:36 EDT
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 … - Earnings Before Interest, Taxes, Depreciation and Amortization (EBIT…Created: 2009-08-25 @ 15:29:59 EDT Updated: 2009-08-25 @ 15:47:54 EDT
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 lever… - Double Declining Balance Depreciation MethodCreated: 2009-08-25 @ 15:02:50 EDT Updated: 2009-08-25 @ 15:02:49 EDT
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 depreciat… - Comparing Depreciation MethodsCreated: 2009-08-25 @ 14:54:30 EDT Updated: 2009-08-25 @ 15:24:19 EDT
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 inte… - Sum of the Years Digits and Other Accelerated Depreciation Methods…Created: 2009-08-25 @ 04:57:43 EDT Updated: 2009-08-25 @ 15:01:43 EDT
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 … - Straight Line Depreciation MethodCreated: 2009-08-25 @ 04:29:42 EDT Updated: 2009-08-25 @ 15:01:11 EDT
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… - Accumulated DepreciationCreated: 2009-08-25 @ 04:26:51 EDT Updated: 2009-08-25 @ 15:00:52 EDT
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… - Depreciation and Amortization on the Income Statement…Created: 2009-08-25 @ 03:23:11 EDT Updated: 2009-08-25 @ 14:59:02 EDT
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 depreci… - Interest Coverage RatioCreated: 2009-08-25 @ 03:15:58 EDT Updated: 2009-08-25 @ 14:58:28 EDT
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 dividin… - Interest Income and ExpenseCreated: 2009-08-25 @ 03:08:42 EDT Updated: 2009-08-25 @ 14:58:02 EDT
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… - Operating Income and Operating Profit MarginCreated: 2009-08-25 @ 01:26:52 EDT Updated: 2009-08-25 @ 02:06:23 EDT
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 … - Accounting for Extraordinary and Nonrecurring Items or Events in You…Created: 2009-08-25 @ 00:56:03 EDT Updated: 2009-08-25 @ 00:56:02 EDT
When analyzing an income statement, you must make an accounting for extraordinary and non-recurring items and events. It is best to leave these one-time events out of the equation, basing your earn… - Extraordinary and Nonrecurring Items or Events on the Income Stateme…Created: 2009-08-25 @ 00:27:22 EDT Updated: 2009-08-25 @ 00:48:06 EDT
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… - Goodwill and Amortization Charges on the Income Statement…Created: 2009-08-24 @ 22:51:44 EDT Updated: 2009-08-25 @ 00:19:48 EDT
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 … - SGA - Selling, General and Administrative Expense…Created: 2009-08-24 @ 22:17:53 EDT Updated: 2009-08-24 @ 22:17:53 EDT
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 op… - Research and Development Costs - R&DCreated: 2009-08-24 @ 21:54:40 EDT Updated: 2009-08-24 @ 21:54:39 EDT
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 … - Operating ExpenseCreated: 2009-08-24 @ 21:23:19 EDT Updated: 2009-08-24 @ 21:23:18 EDT
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 su… - Analyzing the First Three Lines of the Income Statement…Created: 2009-08-24 @ 20:12:32 EDT Updated: 2009-08-24 @ 20:12:32 EDT
Analyzing the first three lines of the income statement, including total revenue, cost of goods sold, gross profit, and gross profit margin… - Investing Lesson 4: Income Statement Analysis…Created: 2009-08-24 @ 16:28:20 EDT Updated: 2009-08-24 @ 16:28:19 EDT
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… - Sample Income StatementCreated: 2009-08-24 @ 01:22:05 EDT Updated: 2009-08-24 @ 19:56:17 EDT
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 unti… - Revenue and Sales on the Income StatementCreated: 2009-08-24 @ 01:07:23 EDT Updated: 2009-08-24 @ 17:03:17 EDT
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… - Cost of Goods Sold - COGSCreated: 2009-08-24 @ 01:07:09 EDT Updated: 2009-08-24 @ 17:55:17 EDT
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… - Gross Profit on the Income StatementCreated: 2009-08-24 @ 01:06:54 EDT Updated: 2009-08-24 @ 19:44:42 EDT
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… - SUPPORT - PLEASE DELETE THIS FILECreated: 2009-08-23 @ 20:17:34 EDT Updated: 2009-08-23 @ 20:53:07 EDT
The Abercrombie and Fitch balance sheet will be used to explain how you can analyze financial ratios and read a balance sheet… - Continuing Operations vs Discontinued Operations on the Income State…Created: 2009-08-23 @ 15:14:24 EDT Updated: 2009-08-24 @ 01:15:00 EDT
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 doe… - Comparing Depreciation MethodsCreated: 2009-08-23 @ 03:14:17 EDT Updated: 2009-08-24 @ 01:12:37 EDT
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 inte… - The Annual Report - Researching a Stock's Annual Report…Created: 2009-08-04 @ 02:21:44 EDT Updated: 2009-08-04 @ 05:40:49 EDT
Many investors know that they are supposed to request a company’s annual report to understand the business but they don’t really know what it is or why it is important. Here, y… - The Proxy Statement - What It Is and What It Can Tell You…Created: 2009-08-04 @ 01:47:08 EDT Updated: 2009-08-04 @ 05:38:18 EDT
Each year, the government requires publicly traded companies to provide their stockholders with a proxy statement that details a lot of really important information that cannot be found anywhere el… - What is a 10K and Why Should an Investor Read It?…Created: 2009-08-04 @ 01:19:51 EDT Updated: 2009-08-04 @ 05:39:28 EDT
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 s… - Market Capitalization 101 - Your Guide to Understanding Market Capit…Created: 2009-08-03 @ 23:56:23 EDT Updated: 2009-08-03 @ 23:59:07 EDT
Market capitalization is a term used on Wall Street that is extremely important. Although it is often heard on the nightly news and in financial textbooks, very few new investors know what market … - Rating AgencyCreated: 2009-08-03 @ 23:00:42 EDT
A rating agency is a company that has been given special authority from the government to rate securities such as stocks and bonds, based on risk and pricing. The higher the rating, the lower the … - Purchasing Managers IndexCreated: 2009-08-03 @ 22:57:24 EDT
The Purchasing Managers Index is released on the first day of the month by the National Association of Purchasing Managers. The PMI measures five factors in business: new orders, inventory levels,… - New York Stock ExchangeCreated: 2009-08-03 @ 22:55:03 EDT
Located on Wall Street in New York City, the New York Stock Exchange, or NYSE, is the oldest and largest in the world. It generally tends to control policy due to its sheer size and is where most … - Employment Situation ReportCreated: 2009-08-03 @ 22:50:10 EDT
The Employment Situation Report is an economic indicator that is released on the first Friday of every month at 8:30 a.m., EST. Published by the Bureau of Labor and Statistics, the report has two … - Employee Cost Index - ECICreated: 2009-08-03 @ 22:47:09 EDT
The Employee Cost Index (or ECI for short), is a measurement of the growth of overall compensation, including wages and benefits, for employees across the country. It is based on a fixed number of… - Consumer Price IndexCreated: 2009-08-03 @ 22:33:09 EDT
The consumer price index is one of the most important benchmarks and economic indicators because it measures the prices of goods and services for the consumer. The consumer price index is publishe… - Consumer Confidence IndexCreated: 2009-08-03 @ 22:22:40 EDT
The consumer confidence index, which is often shorthanded as CCI, is an economic indicator that measures consumer confidence in the United States economy. The U.S. has been far more dependent upon… - Retail Sales DataCreated: 2009-08-03 @ 21:14:06 EDT
Retail Sales are the backbone of our economy. The Retail Sales Data released monthly by the Census Bureau measures the merchandise sold by companies. It includes all retail operations in the nati… - PPI (Producer Price Index)Created: 2009-08-03 @ 21:02:38 EDT
The Producer Price Index (or PPI for short) is a group of indices that measures the average change over a span of time of the price received by domestic producers of goods and services. Whereas th… - Housing StartsCreated: 2009-08-03 @ 20:56:15 EDT
A key economic indicator, Housing Starts measure the number of new residential construction projects begun during a specific span or period of time. … - Gross National Product (GNP)Created: 2009-08-03 @ 20:51:12 EDT
The Gross National Product (or GNP) is comprised of taking the Gross Domestic Product (GNP) and adding it to the income of domestic residents resulting from foreign investments subtracted by the ea… - BankruptCreated: 2009-08-03 @ 20:46:39 EDT
When a person or company cannot pay back its liabilities and debt. In a publicly traded corporation, assets are transferred from shareholders to bondholders and various other creditors… - AnnuityCreated: 2009-08-03 @ 20:43:43 EDT
A contract available from an insurance company which guarantees specific payments at certain times (such as retirement). There are several different types of annuities, but the two most common are… - SEC (Securities and Exchange Commission)Created: 2009-08-03 @ 20:40:09 EDT
The Securities and Exchange Commission (normally called the SEC for short), is the chief regulating body in the securities industry. Its primary function is to protect investors by preventing and … - Pacific Stock ExchangeCreated: 2009-08-03 @ 20:35:28 EDT
The Pacific Stock Exchange is a regional exchange found in San Francisco and Los Angeles. It is the only exchange in the United States open between 4:00 and 4:30 p.m… - Partnership AgreementCreated: 2009-08-03 @ 20:32:39 EDT
A Partnership Agreement is a written contract among partners that spells out the exact terms and conditions of the partnership… - PartnershipCreated: 2009-08-03 @ 20:09:03 EDT
A partnership is type of unincorporated business structure in which individuals or entities called "partners" are entitled to a percentage of the profits. There are two types of partners… - PartnerCreated: 2009-08-03 @ 20:05:42 EDT Updated: 2009-08-03 @ 20:06:01 EDT
A partner is any individual who is part of a partnership. There are generally two types of partners, "General" and "Limited"… - Participation RateCreated: 2009-08-03 @ 20:03:12 EDT
The Participation Rate is the percentage of the general population (over the age of 15) who are currently employed or are actively seeking employment… - Parabolic IndicatorCreated: 2009-08-03 @ 19:57:54 EDT Updated: 2009-08-03 @ 19:58:54 EDT
The Parabolic Indicator was developed by J. Wells Wilder in order to determine the best times to get in and out of the market. It is based on SAR (the stop and reverse method)… - Paired SharesCreated: 2009-08-03 @ 19:55:57 EDT
Paired Shares refer to the stock of two separate companies that are under the management / supervision of a single firm that is sold as one unit. Also known as Siamese Shares. … - Limited PartnershipCreated: 2009-08-03 @ 19:51:50 EDT
A partnership that includes one or more partners with limited liability in regards to the dealings of the partnership… - DeflationCreated: 2009-08-03 @ 19:44:07 EDT
Deflation is a decline in overall prices in the economy due to a contraction of either credit or the amount of money that is available. It is the opposite of inflation… - CorporationCreated: 2009-08-03 @ 19:32:00 EDT
A corporation is a legal entity chartered by the State and seperate from its owners. A corporation can issue shares of stock and take on debt… - Adjusted BasisCreated: 2009-08-03 @ 19:28:37 EDT
A tool used to calculate the gain or loss when a security or asset is sold. It reflects any improvement or adverse event the investment may have been subject to. … - Asset PlayCreated: 2009-08-03 @ 17:42:54 EDT
A term used to describe a company who's assets are not accurately or completed represented in its share price, therefore making it an attractive investment… - AngelsCreated: 2009-08-03 @ 17:40:18 EDT
A term used to describe wealthy individuals who loan capital to beginning business ventures. In return for the substantial risk they take, most requires a portion of the equity in the company, hop… - After Hours TradingCreated: 2009-08-03 @ 17:38:11 EDT
After Hours Trading is a term that refers to securities being traded after regular business hours on the major exhanges… - Action to Quiet TitleCreated: 2009-08-03 @ 17:25:09 EDT
An action to quiet title is a decision by a court that establishes ownership of a property, specifically real estate… - Traditional IRACreated: 2009-08-03 @ 16:24:18 EDT
A traditional IRA is a type of retirement plan that allows you to make tax-deductible contributions to your account based on your adjusted gross income. … - Participating Convertible Preferred StockCreated: 2009-08-03 @ 16:20:10 EDT
Participating Convertible Preferred Stock is a class of preferred stock which is entitled to an additional dividend in addition to the regular dividend, whenever the dividend on the common stock ex… - Net WorthCreated: 2009-08-03 @ 16:15:36 EDT
Net worth is defined as total assets subtracted by total liabilities. … - Hostile TakeoverCreated: 2009-08-03 @ 16:12:53 EDT
A hostile takeover is when one company attempts to acquire another company against the wishes of the management, shareholders, and board of directors of the target company… - Common StockCreated: 2009-08-03 @ 16:09:27 EDT
Common stock is one of the two main classes of a corporation's stock (the other is preferred stock). Common stock gives the holder the right to vote at shareholder meetings and may or may not pay … - Discount RateCreated: 2009-08-03 @ 16:01:21 EDT
The discount rate is the amount of interest that the Federal Reserve charges a financial institution when it borrows money… - UptickCreated: 2009-08-03 @ 15:56:39 EDT
Uptick is a term used to describe an upward movement by a particular stock. The exchanges in the United States only allow stocks to be sold short on an uptick… - Tracking StockCreated: 2009-08-03 @ 15:52:39 EDT
A stock that is issued to track a certain division of a company. This allows managers and executives for each division to have rewards and compensation tied to the overall performance of the part… - Two Tier BidCreated: 2009-08-03 @ 15:46:09 EDT
A Two Tier Bid is when a potential acquirer offers to pay a higher price for the shares that will give them control in the company than for the other shares (e.g., the first 51% gets a higher price… - Acid Test RatioCreated: 2009-08-03 @ 15:42:49 EDT
The acid test ratio is another name for the "quick ratio". It is used to measure how easily a company could be liquidated, and therefore help financial institutions decide upon how credit… - TitleCreated: 2009-08-03 @ 15:37:29 EDT
A title is a document or certificate that represents ownership of an asset such as real estate… - Tender OfferCreated: 2009-08-03 @ 15:33:55 EDT
A tender offer is a public offer made to the shareholders of a company by a potential acquirer to purchase their stock at a price much higher than the current market value of the stock. If all goes… - SubsidiaryCreated: 2009-08-03 @ 15:27:45 EDT
A subsidiary is a company that is wholly, or nearly wholly, owned by another business, corporation, or company. There are special tax rules for 80% or greater owned subsidiaries that allow the com… - SecuritiesCreated: 2009-08-03 @ 15:21:52 EDT
The word securities is used to describe any asset that can be bought and sold on a market by exchanging paper certificates or electronic ownership records. Shares of stock, ETFs, and many bonds ar… - Annual Percentage YieldCreated: 2009-08-03 @ 06:09:26 EDT
The annual rate of return; it takes into account compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per mon… - ShareholderCreated: 2009-08-03 @ 06:06:36 EDT
A shareholder is any person, corporation, institution, or entity that owns stock in a publicly traded company… - Shadow PlayerCreated: 2009-08-03 @ 05:53:10 EDT
Shadow Player is financial slang for an investor who is investing a very large amount of money and is attempting to conceal their identity when buying up shares in a company. … - Short Selling - Short a StockCreated: 2009-08-03 @ 05:49:11 EDT
When someone shorts a stock (sometimes called "selling short"), they borrow shares of a company from an investor and sell those borrowed shares at the current market price. The hope is t… - PrincipalCreated: 2009-08-03 @ 05:36:29 EDT
Principal is the total amount of money being invested, borrowed, lent, saved, etc. … - Prime RateCreated: 2009-08-03 @ 05:32:50 EDT
The Prime Rate is in the interest rate at which banks lend to their best and most creditworthy borrowers. Generally considered to be a lagging indicator of the economy… - Poison PillCreated: 2009-08-03 @ 05:21:53 EDT
Poison Pill is the nickname for any tactic utilized by a company to try and prevent a hostile takeover. Designed to make the target company unattractive to the potential buyer… - Pass Through CertificateCreated: 2009-08-03 @ 05:18:49 EDT
A Pass Through Certificate is a fixed income security that is an undivided interest in a group of mortgages ensured by the Federal Government. They are put together by Ginnie Mae (Government Natio… - Pass the BookCreated: 2009-08-03 @ 05:15:52 EDT
Pass the Book is slang for when a brokerage firm transfers responsibility for accounts to other offices around the world in order to take advantage of 24 hour trading… - Passive Portfolio StrategyCreated: 2009-08-03 @ 05:13:31 EDT
An investment strategy that is founded upon the principles of diversification. The goal is to match a particular market index's return. Opposite of Active Portfolio Strategy… - Pass BookCreated: 2009-08-03 @ 05:11:04 EDT
A Pass Book is a book given to account holders of banks and savings and loans institutions in order to document all transactions. Used predominately for a savings account… - Par Value of CurrencyCreated: 2009-08-03 @ 05:06:48 EDT
The Par Value of Currency is the official, quoted exchange rate between any two countries' currency… - Participation CertificateCreated: 2009-08-03 @ 05:00:33 EDT
A Participation Certificate is an investment where an individual purchases part of the revenue generated by municipal or government leases instead of the bonds backed by the revenues… - Participating TrustCreated: 2009-08-03 @ 04:56:51 EDT
A Participating Trust is an investment company which purchases and compiles a fixed portfolio of unmanaged assets and investments designed to create income. The trust then sells shares of itself t… - Participating LoanCreated: 2009-08-03 @ 04:54:39 EDT
A participating loan is one made by multiple lenders… - Participating Preferred StockCreated: 2009-08-03 @ 04:50:31 EDT
Participating Preferred Stock is a kind of preferred stock that pays 1.) a regular dividend, and 2.) an additional dividend when the dividend on the common stock exceeds a specific amount… - Participating InsuranceCreated: 2009-08-03 @ 04:42:06 EDT
Participating Insurance is the term used to describe any insurance policy that pays out a dividend to its holders… - Participating FeesCreated: 2009-08-03 @ 04:36:54 EDT
A participating fee is a the part of the total, overall fees that go to each individual bank that makes up a syndicate… - Participating DividendCreated: 2009-08-03 @ 04:33:41 EDT
A participating dividend is a special dividend that is paid on participating preferred stock… - Partial SpinoffCreated: 2009-08-03 @ 04:29:03 EDT Updated: 2009-08-03 @ 04:29:26 EDT
A Partial Spinoff is when a parent company sells part of a subsidiary to the public, usually in the form of an IPO. In a situation such as this, the parent company raises money through the sell-of… - Partial ReleaseCreated: 2009-08-03 @ 04:26:08 EDT
A Partial Release is a provision in a mortgage agreement which allows the release of a portion of collateral that has been pledged if certain conditions are met… - Partially Amortized LoanCreated: 2009-08-03 @ 04:21:36 EDT
A Partially Amortized Loan is a liability or obligation that is partially amortized while the rest is paid upon the end of the loan term… - PartialCreated: 2009-08-03 @ 04:17:40 EDT Updated: 2009-08-03 @ 04:19:12 EDT
A Partial is when only a part of a customer's order is filled. It is done so that the current market price of an equity can be obtained, as well as prevent losing business to a competing brokerage… - Parking ViolationCreated: 2009-08-03 @ 04:13:44 EDT
A Parking Violation is an illegal tactic used to get around the Williams Act, which requires disclosure when a person or entities' holdings reach 5% of a company. In order for a raider to hide his… - ParkingCreated: 2009-08-03 @ 04:08:24 EDT
When a business or investor "parks" their money, it means they have moved it to cash, cash equivalents, and other "safe" and conservative investments until they see an opportuni… - Parity PriceCreated: 2009-08-03 @ 04:03:35 EDT
The Parity Price is the cost for a given commodity that is tied to a historical price or composite price… - ParityCreated: 2009-08-03 @ 04:00:22 EDT
Parity is when all parties involved are of equal standing and priority. When brokers are bidding for a security, and none has priority, a random drawing is held to determine the winning bid… - Paris ClubCreated: 2009-08-03 @ 03:57:47 EDT
The Paris Club is the term used to describe the monthly meetings between 19 creditor and debtor nations to negotiate and discuss each country's financial obligations to the others. Frequently, rel… - Paris BourseCreated: 2009-08-03 @ 03:55:21 EDT
The Paris Bourse is the official national stock market of France… - Pari PassuCreated: 2009-08-03 @ 03:52:28 EDT
Pari Passu translates as "without partiality" from Latin. It is used in reference to two class of securities or obligations that have equal entitlement to payment… - Parent CompanyCreated: 2009-08-03 @ 03:49:22 EDT
A parent company is a business which owns and controls the operations of other businesses by either possessing outright ownership or controlling a majority of the voting stock… - Par BondCreated: 2009-08-03 @ 03:45:12 EDT
A par bond is a bond that is selling at face value… - Parallel Shift in the Yield CurveCreated: 2009-08-03 @ 03:36:38 EDT
A Parallel Shift in the Yield Curve is a phenomenon that occurs when the interest rate on all maturities increases or decreases by the same number of basis points. See also Non-Parallel Shift in t… - Parallel LoanCreated: 2009-08-03 @ 03:32:57 EDT
A Parallel Loan is when two companies, institutions, or entities, particularly banks, borrow the other's currency in order to reduce foreign exchange risk. … - Paper TrailCreated: 2009-08-03 @ 03:26:31 EDT
A paper trail is a string of documents, records, accounts, and paperwork that can be used to follow a string of activity… - Paper TradingCreated: 2009-08-03 @ 03:23:49 EDT
Paper trading is the act of simulating investing with theoretical money to test theories and performance… - Paper ProfitCreated: 2009-08-03 @ 03:06:23 EDT
A paper profit is an increase in the market value of an investment. It does not become "realized" or "real" until the investment is sold. Also known as a paper or unrealized … - Paper LossCreated: 2009-08-03 @ 03:02:47 EDT
A paper loss is a decrease in the market value of an investment. It does not become "realized" or "real" until the investment is sold. The same thing as a paper and unrealize… - Paper GainCreated: 2009-08-03 @ 02:58:09 EDT
A paper gain is an increase in the market value of an investment. It does not become "realized" or "real" until the investment is sold… - Paper AssetCreated: 2009-08-03 @ 02:53:23 EDT
A paper asset is one that has very low liquidity. That is, a paper asset cannot be quickly converted into cash. … - Panic SellingCreated: 2009-08-03 @ 02:47:55 EDT
Panic Selling is the widespread selling of an investment, particularly a stock, after a sudden and sharp decline in price. It is normally driven by fear that the market will fall further, causing … - Panic BuyingCreated: 2009-08-03 @ 02:42:43 EDT
Panic Buying is when investors start purchasing a stock following a large, substantial price increase. It is driven by the fear of being "left out" of the "next big thing."… - Paired OffCreated: 2009-08-03 @ 02:37:28 EDT
Paired Off usually refers to buy and sell orders that are matched up to each other before the opening of the market… - Painting the TapeCreated: 2009-08-03 @ 02:33:17 EDT
Painting the Tape is when traders engage in the illegal activity of buying and selling a security among themselves to create the facade of heavy volume. The increased volume, in exchange, causes … - Paid UpCreated: 2009-08-03 @ 02:29:20 EDT
Paid up is a way of saying that all payments that are due or owed have been fully paid… - Paid in SurplusCreated: 2009-08-03 @ 02:22:27 EDT
Paid in Surplus is capital that is brought in by investors in return for stock. It is not capital that is generated as a result of the operation of the company. Also referred to as Contributed Ca… - Paid in CapitalCreated: 2009-08-03 @ 02:19:31 EDT
Paid in Capital is capital that is brought in by investors in return for stock. It is not capital that is generated as a result of the operation of the company. Also referred to as Contributed Ca… - Pac-Man StrategyCreated: 2009-08-03 @ 02:14:42 EDT
The Pac-Man Strategy is a defense against a hostile takeover. It is when a takeover target company launches a tender offer for the company that was trying to acquire it. If successful, the target… - Package MortgageCreated: 2009-08-03 @ 02:11:56 EDT
A package mortgage is one in which the personal property and furniture is included in the cost of the house… - MergerCreated: 2009-08-03 @ 02:03:52 EDT
A merger is when two companies consolidate together to create a new firm. Mergers allow companies to expand their market, lower cost through economics of scale, and sometimes enjoy better negotiat… - Bond MaturityCreated: 2009-08-03 @ 01:42:11 EDT
Maturity is the date that the principal on a bond is legally required to repaid to the bond holder. … - Round LotCreated: 2009-08-03 @ 01:32:20 EDT
A round lot refers to blocks of 100 shares of a stock. There are sometimes fees for investors who do no purchase in round lots because it's easier for the stock exchange to trade shares when they … - Line of CreditCreated: 2009-08-03 @ 01:25:17 EDT
A line of credit is an informal agreement between a bank or institution and another entity, such as a business or individual, in which the former allows the latter to borrow up to certain limit of … - LoanCreated: 2009-08-03 @ 01:15:58 EDT
A loan is when one entity gives money or assets to another one for a set period of time, in exchange for repayment of the principal plus interest… - Market CapitalizationCreated: 2009-08-03 @ 01:11:46 EDT
A company's market capitalization, or market cap as it is often called on Wall Street, refers to the total value of a company's stock. It is calculated by taking all of the outstanding shares and… - LiquidationCreated: 2009-08-03 @ 00:57:37 EDT
Liquidation is the act of selling all assets or items with tangible value and using the proceeds to pay the company's creditors. All remaining cash, and assets possessing any value are distributed… - Institutional InvestorCreated: 2009-08-03 @ 00:45:54 EDT
An institutional investor is an entity, company, mutual fund, insurance corporation, brokerage, or other such group that has a large amount of money or assets to invest. These investors are respon… - Growth FundCreated: 2009-08-03 @ 00:38:47 EDT
A growth fund is a type of mutual fund that seeks to invest in higher-risk securities in exchange for the potential of higher gains due to tremendous growth rates of the companies the own. For the… - Glass-Steagall ActCreated: 2009-08-02 @ 23:56:46 EDT
The Glass-Steagall Act is legislation that was passed in 1933 which prohibits banks from underwriting, dealing in, or owning stocks and bonds of corporate companies. This effectively bans banks fr… - Government National Mortgage Association - Ginnie MaeCreated: 2009-08-02 @ 23:51:30 EDT
Ginnie Mae is an entity completely owned by the United States Government. A part of the Department of Housing and Urban Development, Ginnie Mae purchases mortgages from approved lending institutio… - InterestCreated: 2009-08-02 @ 23:46:04 EDT
Interest is a fee that a lender charges in order for a borrower to use their money. Interest is expressed in terms of "percent of principal" (for instance, if a loan is $1,000 and the i… - Fortune 500Created: 2009-08-02 @ 23:13:56 EDT
The Fortune 500 is a list published by Fortune Magazine profiling the top 500 corporations in the United States. The rankings are indexed by twelve different variables and criteria… - Five Hundred Dollar RuleCreated: 2009-08-02 @ 23:02:27 EDT
The five hundred dollar rule is a Federal Reserve rule that excludes $500 or less deficiencies in margin accounts as a necessary reason for a brokerage or other financial institution to sell off an… - Fiscal YearCreated: 2009-08-02 @ 22:48:07 EDT
A fiscal year is any period of 12 consecutive months for which a company or business calculates earnings, profits, and losses. It does not necessarily reside within a calendar year (e.g., a compan… - Employee Stock Ownership PlanCreated: 2009-08-02 @ 22:37:34 EDT
An employee stock ownership plan is a tool that companies use to increase employee feeling of "ownership" in a business, and therefore productivity. It is a trust fund established by the… - Emerging MarketCreated: 2009-08-02 @ 22:26:20 EDT
The term emerging market is used to describe investments bought in companies that are emerging or underdeveloped compared to world powers. Emerging markets offer higher risks due to less stable po… - Economics of ScaleCreated: 2009-08-02 @ 22:20:44 EDT
Economics of Scale is a term that is used to describe the reduction in cost-per-unit as more units are produced. For example, if a company makes 500 widgets, they cost the company 10 cents a piece… - DowntickCreated: 2009-08-02 @ 22:03:51 EDT
A downtick is a term used to describe a downward movement by a particular stock. The exchanges in the United States do not allow stocks to be sold short on a downtick and this is known as the upt… - Distress SaleCreated: 2009-08-02 @ 21:58:02 EDT
A distress sale is the forced sale of an asset or investment because of necessity. For example, a person may need to pay hospital bills or cover a margin call, and are therefore are forced to sel… - Coupon BondCreated: 2009-08-02 @ 19:47:35 EDT
A coupon bond is the same as a bearer bond in that it is not registered with a company but instead, whoever physically has possession of the coupon bond has the right to receive the interest income… - DefaultCreated: 2009-08-02 @ 19:42:36 EDT
On Wall Street, the term default is used to describe when a payment is missed that is due to bondholders or a lender. In many cases, a default is enough to trigger the acceleration clause… - DebentureCreated: 2009-08-02 @ 19:29:02 EDT Updated: 2009-08-02 @ 19:32:21 EDT
A debenture is any debt or loan that is backed only by the borrower's word. In other words, the definition of a debenture is an unsecured bond… - Cyclical StocksCreated: 2009-08-02 @ 19:20:09 EDT
A cyclical stock is a stock that has historically moved up very quickly in a rising economy and fallen in a depressed one. Common cyclical stocks include automobile manufacturers and luxury jewelr… - DefeasanceCreated: 2009-08-02 @ 19:13:44 EDT
To terminate, cancel, absolve, nullify, or end an agreement or contract because certain acts were, or were not, performed. Another, although less common definition, means cash, equity, or bonds th… - CreditorCreated: 2009-08-02 @ 19:08:21 EDT
A creditor is a person who loans money to another person, institution, or company in exchange for interest on their money… - ContractCreated: 2009-08-02 @ 18:52:50 EDT
A contract is a legally binding document between two or more people, parties, or companies, that stipulates one party promises to perform (or not to perform) certain actions… - CollateralCreated: 2009-08-02 @ 18:48:10 EDT
Collateral refers to an asset that can seized by the lender in the event of default. The lender can then sell this asset to recover any money that is owed to them. The most commonly understood ve… - Cashier's CheckCreated: 2009-08-02 @ 18:36:13 EDT
A cashiers check is one that cannot bounce because a customer pays the bank and then the bank writes the check out of its own account. The check, in other words, comes from the bank and is certain… - CartelCreated: 2009-08-02 @ 18:28:09 EDT
A cartel is the term used to describe a group of companies or governments working together in order to completely and totally control a market. One tactic to increase profit margins is to limit pr… - Callable BondCreated: 2009-08-02 @ 18:20:39 EDT
A callable bond is a special type of bond in which the issuer reserves the right to pay the owed amount to the bondholder before the maturity date. If a company calls a bond, the holder of that bo… - Block TradeCreated: 2009-08-02 @ 18:10:58 EDT
A block trade is a type of trade when a large number of stocks or bonds are being bought or sold by wealthy individuals, corporations, pensions, or other institutions. Typically, a block trade beg… - Blitzkrieg Tender OfferCreated: 2009-08-02 @ 18:06:47 EDT
A blitzkrieg tender offer is a takeover offer that is priced so attractively the takeover is completed very quickly. This is often accomplished by pricing the buyout far above the recent stock pri… - Blind TrustCreated: 2009-08-02 @ 18:02:55 EDT
A blind trust is a trust in which the owners have no knowledge of the assets or investments they own. The money is managed by a professional, non-related third-party. Traditionally, politicians, … - Black TuesdayCreated: 2009-08-02 @ 17:58:13 EDT
Black Tuesday was the infamous day the stock market crashed,, falling 13%, leading to panic, and ushering in the Great Depression. Although Black Tuesday gets all of the press, few investors remem… - Black MondayCreated: 2009-08-02 @ 17:53:28 EDT
Black Monday was the day the Dow Jones Industrial Average fell by 22 percent in a single trading session. Black Monday happened on October 19th, 1987… - Black FridayCreated: 2009-08-02 @ 17:39:29 EDT
Black Friday was when the markets crashed on September 24th, 1969 after financiers attempted to corner the gold market unsuccessfully. Their actions resulted in a nationwide depression that caused… - Big BoardCreated: 2009-08-02 @ 17:34:48 EDT Updated: 2009-08-02 @ 17:35:34 EDT
The term big board is Wall Street slang for the New York Stock Exchange, which is the largest and most respected stock exchange in the world… - Beige BookCreated: 2009-08-02 @ 16:56:44 EDT
The Beige Book is a report released by the Federal Reserve Board eight times each year. It is a general report on economic conditions… - Basis PointCreated: 2009-08-02 @ 16:46:19 EDT
The term basis point is a measurement of percentage often used to compare gains or losses in fixed income investment such as bonds or expense structures in mutual funds. One basis point is equal t… - BankmailCreated: 2009-08-02 @ 16:41:45 EDT
Bankmail is a legally binding agreement in which a bank promises a company that is involved in a takeover bid that it will not finance any other potential bidder… - AnalystCreated: 2009-08-02 @ 16:31:37 EDT
An analyst is a person who works for a stock broker or investment bank and spends their time analyzing specific stocks. In many cases, an analyst is assigned to a single industry. Using the infor… - Alphabet StockCreated: 2009-08-02 @ 16:27:00 EDT
A term used to denote different classifications of common stock which are tied to a certain division, subsidiary, or department of a corporation. Each "series" of alphabet stock has diff… - Air Pocket StockCreated: 2009-08-02 @ 16:24:07 EDT
An air pocket stock is a stock that has a sudden and sharp decline in price due to unexpected disappointing earnings or results… - AffiliateCreated: 2009-08-02 @ 16:19:02 EDT
The term affiliate is used to describe the relationship between two companies in which one owns a substantial, but not controlling, amount of the voting stock. It can also mean when two companies … - Adverse SelectionCreated: 2009-08-02 @ 16:13:03 EDT
Adverse selection is a term used primarily in insurance although it is useful for other industries, as well. It refers to a situation in which the buyer or seller of a product knows something abou… - Advance - DeclineCreated: 2009-08-02 @ 16:02:06 EDT
The term advance decline on Wall Street refers to the relationship between stocks trading above their opening price and the stocks trading below their opening price. It is used as a measure of the… - Active Portfolio StrategyCreated: 2009-08-02 @ 15:20:24 EDT
In an active portfolio strategy, a manager uses financial and economic indicators along with various other tools to forecast the market and achieve higher gains than a buy-and-hold (passive) portfo… - Active BoxCreated: 2009-08-02 @ 15:09:17 EDT
Active Box is a term used to describe securities that are being held as collateral for an investor's margin positions. In the event of default, they can be used to satisfy the balance of the loan… - Active AssetCreated: 2009-08-02 @ 15:06:09 EDT
An active asset is defined as any asset that is used in the day-to-day operations of a business. If you owned a company that manufactured peanut butter, your active assets would include things suc… - Accrual BondCreated: 2009-08-02 @ 15:01:51 EDT
An accrual bond is more commonly referred to as a zero coupon bond. It is a type of bond where interest is added to the principal balance due to the bondholder at maturity and not paid out in cash… - Accreted ValueCreated: 2009-08-02 @ 14:55:09 EDT
Accreted value is the price a bond would sell for if interest rates remained at their current level indefinitely. Private investors and financial analysts use accreted value as one of many sources… - Accounting EquationCreated: 2009-08-02 @ 14:44:47 EDT
The accounting equation is stated as Assets - Liabilities = Shareholder Equity. You can also rearrange the components of the accounting equation to Shareholder Equity + Liability = Assets. Put si… - Acceleration ClauseCreated: 2009-08-02 @ 14:39:13 EDT
The acceleration clause is a provision in a loan agreement that states the entire outstanding balance of the loan becomes payable immediately if a certain event or events transpire such as missing … - AcquisitionCreated: 2009-08-02 @ 01:23:36 EDT Updated: 2009-08-02 @ 01:24:15 EDT
An acquisition is when one company acquires another one with the acquirer usually being larger than the acquiree, although this is not always the case. An acquisition differs from a merger because… - AccumulateCreated: 2009-08-02 @ 01:00:58 EDT
On Wall Street, the term accumulate has a slightly different definition depending upon who is using it. Accumulate is a "rating" by either a broker or an analyst, which means that shares… - AbsorbedCreated: 2009-08-02 @ 00:30:48 EDT
In the world of business, the term absorbed means refers to a business that is merged into another company due to an acquisition or restructuring. The term absorbed can also mean something that is… - Absolute Priority RuleCreated: 2009-08-02 @ 00:19:39 EDT
The absolute priority rule is the rule used in bankruptcy proceedings that states a creditors' claims take priority over shareholders' claims in the event of liquidation. In Wall Street terms, a b… - Triple A Bond Rating - AAACreated: 2009-08-02 @ 00:07:51 EDT
The phrase Triple A, or AAA, refers to the highest rating awarded by various bond agencies for a specific bond. It indicates that an investment is extremely safe and there is very little risk of d… - Income Investing for Beginners - a 10 Part Guide to Successful Incom…Created: 2009-07-21 @ 15:18:07 EDT Updated: 2009-07-21 @ 16:48:20 EDT
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 … - What Happens If My Stock Goes Bankrupt?Created: 2009-07-21 @ 05:02:49 EDT
Have you ever wondered what happens if a stock you owns goes bankrupt? Will you owe money? What happens to your holdings? Get the answers to these often asked, but rarely answered, questions… - The Entire Theory of Investing Using Murano Glass Beads…Created: 2009-07-20 @ 03:13:07 EDT Updated: 2009-07-20 @ 03:31:07 EDT
After having a conversation with one of the jewelry specialists at our luxury retail store, I decided to explain the entire reason investing generates much higher wealth than any other endeavor by … - How to Negotiate a Credit Card Debt Settlement with Your Credit Card…Created: 2009-07-14 @ 14:18:54 EDT Updated: 2009-07-14 @ 17:26:07 EDT
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 p… - How to Increase Profits at a Business - Business Made Simple…Updated: 2009-11-09 @ 12:55:52 EST
Lately, I've heard people talking about how difficult business is and the problems one faces when building a company or selecting a stock. I want you to remember to focus on simplicity. Increasin… - How to Invest in StockUpdated: 2009-11-09 @ 03:41:04 EST
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 basi… - Household Income in the United StatesUpdated: 2009-11-09 @ 03:13:22 EST
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 inco… - Class In The United States - A Look at Household Income and Wealth i…Updated: 2009-11-09 @ 00:09:24 EST
Social and economic class in the United States is often ranked based on household income and household wealth. In this special, we're going to discuss class in the United States, what causes those… - What is a BondUpdated: 2009-11-05 @ 23:23:50 EST
Bonds are long term debt sold to investors by companies. The proceeds of the bond issue are used for many purposes, including operational expansion… - Saving vs. Investing – Finding the Right Balance…Updated: 2009-10-25 @ 21:30:54 EDT
There is an important balance that needs to be struck between saving and investing. Both have vital roles to play in your financial life, but very few people know why each is important or, frankly… - Investing BasicsUpdated: 2009-10-13 @ 01:54:40 EDT
If you are a new investor, these investing basics will help you choose a broker, understand dividends, the basics of successful investing, how to become wealthy, and much more. You'll also discove… - Pay Off Your Debt or InvestUpdated: 2009-10-11 @ 14:32:01 EDT
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… - Long Iron Condor Option TradeUpdated: 2009-09-01 @ 01:19:37 EDT
The long iron condor is a type of advanced stock option trade that allows you to profit when a stock trades within a specific range. One advantage of the long iron condor trade is that it lets you… - Investment Research 101Updated: 2009-08-04 @ 05:43:10 EDT
Many people are ready to take the plunge and begin researching their own investments. This article was designed to help the investor turn his ideas into profitable investments… - American Eagle Gold Bullion CoinsUpdated: 2009-07-18 @ 18:07:54 EDT
American Eagle gold bullion coins are a great way for investors to acquire a small position in gold bullion for their portfolio. This article discusses American Eagle gold bullion coins and how yo… - Real Estate vs. Stocks - Which Is the Better Investment?…Updated: 2009-07-06 @ 12:34:43 EDT
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 r… - What Is a Derivative? An Explanation of Derivatives and How They Wor…Updated: 2009-07-06 @ 04:08:06 EDT
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,… - Is It Better or Worse to Start Investing in a Recession?…Updated: 2009-07-06 @ 04:08:02 EDT
Should you begin investing during a recession or wait until the economy improves? Are the rules for investing in a recession different for small businesses than they are for stocks? Get a quick a… - Best Places to Invest Down Payment MoneyUpdated: 2009-07-06 @ 04:07:24 EDT
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 th… - How Bond Spreads Can Really Hurt InvestorsUpdated: 2009-07-06 @ 04:07:06 EDT
There is a hidden cost that new bond investors face that many don't even know exists. It comes from the spread that brokers charge clients who buy bonds and, in some cases, can be several percenta… - What Is a Bond Coupon? - Why Is the Interest I Earn on my Bonds Cal…Updated: 2009-07-06 @ 04:06:54 EDT
Have you ever asked yourself, what is a bond coupon? This term is from more than a century ago when bonds actually came as physical engraved certificates. Although it's not used any more, but the… - 401k - Introduction to the 401k Retirement Plan…Updated: 2009-07-05 @ 17:48:40 EDT
A 401k retirement plan is a special type of account funded through pre-tax payroll deductions. The funds in a 401k retirement plan can be invested in a number of different stocks, bonds, mutual fu… - Canadian Gold Maple Leaf Coins - Investing in Gold With The Canadian…Updated: 2009-07-01 @ 21:26:46 EDT
Canadian gold maple leaf coins are guaranteed in purity by the Canadian Government and serve as the official gold bullion coin of the nation. Canadian gold maple leaf coins were introduced as a res… - Investing in Gold Krugerrand Coins - How to Add the Gold Kruggerand …Updated: 2009-07-01 @ 21:21:42 EDT
Gold Krugerrand coins are a type of investment grade gold bullion coins available for private investors who want to add precious metals to their portfolio. Like their American counterparts, the So… - Over-the-Counter Options - An Introduction to OTC Derivatives…Updated: 2009-07-01 @ 21:16:29 EDT
For the wealthy and well connected, derivative choices aren't limited to standarized exchange-traded options such as puts and calls that trade through clearinghouses. These so-called over-the-coun… - An Introduction to Capital Structure - Why Capital Structure Matters…Updated: 2009-07-01 @ 21:00:36 EDT
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 e… - If You Can’t Beat ‘em, Join ‘em - Investing in Low…Updated: 2009-07-01 @ 03:38:14 EDT
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 f… - Eight Ways to Avoid the 10% Early Withdrawal Fee on Your IRA…Updated: 2009-07-01 @ 02:22:37 EDT
Learn eight ways to avoid the early withdrawal fee on your individual retirement account (IRA) in this article from Investing for Beginners… - Dow FuturesUpdated: 2009-06-10 @ 03:12:05 EDT
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 th… - Surviving and Thriving in the New American Retirement System…Updated: 2009-06-05 @ 22:17:03 EDT
For decades, there was a social contract in America between workers and businesses. Today, however, the middle class face nothing short of a crisis – social security is failing, the trad… - Using LEAPS Instead of Stock to Generate Huge Returns…Updated: 2009-05-12 @ 02:03:32 EDT
LEAPS are a form of Long Term Equity Anticipation Securities that can be used instead of purchasing shares of stock outright to leverage your returns. Although they are not without danger, LEAPS c… - Using Dividend Changes for Big Capital GainsUpdated: 2009-04-25 @ 23:18:49 EDT
There is a way to take advantage of changes in the dividend payout ratio to generate big gains in the stock market. In this resource, you'll discover how changes in the dividend payout ratio can r… - Price to Cash Flow RatioUpdated: 2009-04-19 @ 22:43:25 EDT
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 … - Risk Adjusted Rate of ReturnUpdated: 2009-04-18 @ 17:41:25 EDT
Did you know that your risk adjusted rate of return differs from your absolute rate of return depending on your financial resources, knowledge, opportunity cost, tax situation, and more? In this r… - Bond Funds vs. BondsUpdated: 2009-04-11 @ 23:27:00 EDT
Many investors don't know which is better for their fixed income portfolio, bond funds or individual bonds. In this introduction to bond funds you will learn the benefits, drawbacks, and other con… - A Real Stock Option Trade from One of My Operating Businesses Using …Updated: 2009-04-04 @ 00:10:23 EDT
This morning, one of my operating businesses, Mount Olympus Awards, LLC executed a trade this morning through its Charles Schwab account known as a "buy-write" that consisted of two-legs… - Understanding Your 403(b) Plan - An Introduction to the 403(b) Accou…Updated: 2009-03-30 @ 14:42:17 EDT
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… - Simple IRA - An Introduction to the Simple IRA Plan…Updated: 2009-03-29 @ 18:55:57 EDT
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 plan… - Introduction to Passive Income - How to Make Money By Creating Passi…Updated: 2009-03-29 @ 16:19:01 EDT
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 discu… - Why Warren Buffett and Charlie Munger Were Right…Updated: 2009-03-21 @ 15:42:54 EDT
Years ago, I was attending a Berkshire Hathaway shareholder meeting and something Warren Buffett and Charlie Munger said struck me as odd. When asked why they weren’t concerned about sha… - Understanding Your Rollover IRA - A Guide to the Rollover IRA…Updated: 2009-03-17 @ 16:59:26 EDT
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… - Lower Your Cost Basis with Dollar Cost Averaging and Reinvested Divi…Updated: 2009-02-19 @ 13:03:41 EST
You can lower your cost basis through dollar cost averaging and reinvested dividends. According to the work of Jeremy Siegel, this lower cost basis will allow you to generate higher profits if and… - How Mutual Funds Can Cause Big Tax Payments In Bear Markets…Updated: 2009-01-30 @ 13:38:06 EST
Many investors that hold mutual funds outside of a tax-advantaged account such a 401(k) or Roth IRA are going to receive a rude awakening when their broker sends them their year-end tax documents. … - Capital Gains Tax Holding PeriodsUpdated: 2009-01-30 @ 03:48:30 EST
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 th… - How Mortgage Modification Could Affect Your Portfolio…Updated: 2009-01-26 @ 03:19:11 EST
One of the fights that you’re likely to see in Congress soon is the debate over mortgage modifications. Under the current law, judges do not even have the right to modify the terms of a … - Investing in Your Employer’s StockUpdated: 2009-01-21 @ 01:08:53 EST
Should you invest in your company's or employer's common stock or is it a bad idea to risk your retirement? Discover possible solutions and answers in this investment article… - Why Dividend Paying Stocks Tend to Fall Less During Bear Markets…Updated: 2009-01-20 @ 01:24:20 EST
There are four major reasons that dividend stocks fall less during bear markets. These guidelines will help you understand why some investors find dividend paying stocks more attractive and less r… - Watch Out for the Dividend Trap - When High Dividend Yields and Low …Updated: 2009-01-19 @ 00:19:36 EST
There are times when stocks fall faster than earnings and appear to have high dividend yields and low p/e ratios but are really experiencing what is known as valuation lag. The result is investors… - Think of Your Stocks Like Real EstateUpdated: 2008-12-10 @ 02:29:48 EST
Think of stocks like real estate. People are often rational about the real estate they own but don't bring the same focus on value to the stocks they hold in their brokerage and retirement account… - The 5 Categories of Financial RatiosUpdated: 2008-12-01 @ 01:22:00 EST
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 st… - The PEG Ratio - Using the PEG Ratio to Find Hidden Stock Gems…Updated: 2008-11-30 @ 12:13:18 EST
The PEG ratio is a modified form of the price to earnings ratio and can help you factor in the underlying growth in a company's earnings per share to determine its relative value. Many of the most… - Understanding Bear MarketsUpdated: 2008-11-13 @ 02:06:18 EST
A bear market is when the stock market falls for a prolonged period of time, usually by twenty percent or more. A bear market is the opposite of a bull market and is usually due to a decrease in co… - Are Bad Economic Times a Good Time to Invest? An Interview with Abo…Updated: 2008-10-15 @ 03:50:58 EDT
An interview with About guide to investing about the economy, your portfolio, discrimination, and more… - A Glimpse Into My Dividend Portfolio - The Power of Reinvested Divid…Updated: 2008-09-20 @ 13:52:39 EDT
We’ve often talked about the importance of reinvesting your dividends and how, over the long-term, it can lead to a dollar cost average effect and help you grow more wealth. I thought it… - Managing Your Portfolio During a RecessionUpdated: 2008-09-17 @ 15:59:15 EDT
Managing your portfolio during a recession can pose some unique challenges for your investments. In this second part of our recession guide, we'll provide a unique perspective on ways you can poss… - How to Utilize the Berkshire Hathaway Wealth Model in Your Own Life…Updated: 2008-07-16 @ 16:23:05 EDT
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 … - 7 Ways to Destroy Your Wealth and Guarantee You Spend Your Life in P…Updated: 2008-05-27 @ 22:34:41 EDT
Here are seven of the most effective ways to hurt your net worth and ensure that you stay poor or in poverty throughout your life. … - Reducing Risk 101 - Tips and Techniques for Reducing Risk…Updated: 2008-04-25 @ 19:03:57 EDT
Risk reduction. Insurance companies do it every time they underwrite a new policy by estimated probable outcomes based on past behavior and other factors. It's about protecting what you've earned… - Recession - From the Front LinesUpdated: 2008-03-20 @ 21:17:29 EDT
Right now, it seems like a lot of people are talking about a recession. They want to know what a recession is, how they can survive a downturn in the economy, and how we could fight recession pres… - Recession Handbook for Small Investors - Ways to Protect Your Portfo…Updated: 2008-03-10 @ 01:01:46 EDT
In an uncertain economy or volatile stock market, fear and recklessness are the biggest enemies of the disciplined long-term investor. The former can cause otherwise good people not only cease add… - Warren Buffett’s 2007 Shareholder Letter Released - The Berksh…Updated: 2008-03-02 @ 01:56:20 EST
Warren Buffett has released the Berkshire Hathaway shareholder letter for the fiscal year 2007 in which he details the results of Berkshire's insurance operations, operating businesses, and investm… - Recession 411Updated: 2007-12-27 @ 02:57:11 EST
Recession is defined as a period of economic retraction when the economy gets smaller. Generally, two months of decline in the Gross Domestic Product GDP or a sharp rise in the unemployment rate, a… - Securities Investor Protection Corporation - SIPC…Updated: 2007-11-24 @ 05:49:09 EST
The SIPC is an acronym for Securities Investor Protection Corporation. It was created by the Securities Investor Protection Act, and was designed to protect investors from the bankruptcy of a brok… - How Every College Student Can Retire With More than Six Million Doll…Updated: 2007-10-09 @ 01:07:06 EDT
Every college student can retirement with millions of dollars if they just put aside enough money and let it compound for decades. This basic overview of how to build huge retirement wealth from t… - Is a Full Service Broker Right for You - What You Should Expect from…Updated: 2007-09-20 @ 03:49:01 EDT
How do you know if the extra costs of a full service broker are right for you? For novice investors with sufficient assets, these relationships can be beneficial because they protect them from the… - Surviving a Roller Coaster Stock MarketUpdated: 2007-09-06 @ 01:24:30 EDT
Stock market volatility can be a problem for investors that don't have experience in the financial markets. These tips and tricks can help you survive stock market volatility and reduce your retir… - 3 Secrets to Building a Great FortuneUpdated: 2007-08-26 @ 04:54:08 EDT
Are you interested in building a great fortune that rivals those titans of the gilded age? This light-heared guide to amassing your own fortune will identify some of the similarities that led to t… - Why Building Equity at the Expense of Liquidity Can Lead to Bankrupt…Updated: 2007-08-16 @ 00:41:31 EDT
Everyone wants to own his or her home outright; real estate ownership, free and clear, is the American dream. Yet, unless you are in a position to wipe out the entire balance of the mortgage on yo… - How Immigration Can Save Your Retirement ... And Other Interesting I…Updated: 2007-07-29 @ 17:22:33 EDT
There has been a lot of controversy about illegal immigration. Yet, from a financial standpoint, amnesty for illegal immigrants may just solve the social security crisis. … - Common Stocks and Uncommon Profits - 15 Investment Secrets to Help M…Updated: 2007-06-15 @ 00:28:15 EDT
In his classic book Common Stocks and Uncommon Profits legendary investor Philip Fisher gave us fifteen things to look for in an excellent stock investment and five things to avoid when choosing co… - The Concept of Cash Carry - Investing with Cash Carry…Updated: 2007-03-18 @ 14:31:34 EDT
Imagine that you know you are going to acquire shares of a company such as U.S. Bancorp or Wells Fargo (both of which I own at the time of this article.) You are due for some major cash windfall s… - The Great Real Estate MythUpdated: 2007-02-24 @ 23:50:13 EST
According to Research, Stocks Generate Higher Real Returns than Real Estate. That doesn't mean real estate is a bad investment, it just means that real estate investments won't likely generate as … - Does a High P/E Ratio Mean a Stock is Overvalued?…Updated: 2007-02-13 @ 00:06:01 EST
Does a high price to earnings ratio, or p/e ratio, mean a stock is overvalued? Not always. Sometimes a high p/e ratio can be justified if the investor is certain as a result of his or her analysi… - To Gauge the Market’s Expectation for Inflation, Look at the Sp…Updated: 2007-01-19 @ 01:05:51 EST
The spread between treasury bonds and TIPs or treasury inflation protection bonds is often used by professional money managers to gauge the market's expectation for inflation. TIPs can be a great … - John Neff - Profile of Successful a InvestorUpdated: 2007-01-07 @ 12:58:30 EST
John Neff managed the Vanguard Windsor Fund from 1964 to 1995. During that time, value investor John Neff built one of the best records of his generation, returning over 14.8 percent to his shareh… - The Refrigerator Problem: Why Americans Spend More Time Selecting Ap…Updated: 2006-11-07 @ 02:00:21 EST
Why do most Americans spend more time shopping and researching new appliance purchases than planning for their retirement and examining their investment options such as exchange traded funds and mu… - Cash Dividends vs. Share Repurchases – Which is Better for Your…Updated: 2006-09-23 @ 16:07:48 EDT
Which is better for your portfolio as an investor - cash dividends or share repurchases designed to increase earnings per share? This article discusses the pros and cons of dividends and share rep… - Looking Past the Numbers - The Limitation of the Debt to Equity Rati…Updated: 2005-09-21 @ 11:07:28 EDT
The debt to equity ratio has limitations and doesn't always reflect economic reality. This article can help you discover why the debt to equity ratio is limited in its functionality… - Building a Portfolio with iSharesUpdated: 2005-06-10 @ 00:31:18 EDT
Created by Barclay’s Global Investors, iShares are exchange traded funds (ETFs) that combine the best features of stocks and mutual funds. iShares allows individual and corporate investor… - Before You Open a Brokerage AccountUpdated: 2004-12-18 @ 02:31:03 EST
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 person… - All About Dividends - Declaration, Ex-Dividend Date, Date of Record,…Updated: 2004-11-09 @ 13:08:46 EST
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… - Real Estate Investing Through REITs - History and Benefits of REITs…Updated: 2004-10-14 @ 23:52:26 EDT
Investors interested in real estate investing can acquire property through professionally managed REITs. These REITs provide all of the benefits of real property ownership with a tax-efficient str… - Holding Company Depositary Receipts - HOLDRsUpdated: 2004-10-11 @ 22:32:06 EDT
Holding company depositary receipts, or HOLDRs for short, are a new type of investment that offer the benefits of a diversified portfolio without the fees. This article explains how HOLDRs are stru… - Bonds 101Updated: 2004-10-10 @ 15:30:15 EDT
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… - Asset Management Accounts - The Solution to your Banking and Brokera…Updated: 2004-10-04 @ 02:12:21 EDT
With the passage of the Gramm-Leach-Bliley Act of 1999, asset management accounts burst onto the scene simplifying the financial lives of millions of Americans. This article explains what asset ma… - P/E Ratio - A Quick and Dirty Way to Determine Relative Value…Updated: 2004-09-20 @ 01:32:04 EDT
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… - Warren Buffett BiographyUpdated: 2004-09-19 @ 21:00:22 EDT
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… - Warren Buffett QuotesUpdated: 2004-09-19 @ 16:51:38 EDT
Quotes and sayings by Warren Buffett, the Chairman of Berkshire Hathaway… - Determining Dividend PayoutUpdated: 2004-09-19 @ 11:19:43 EDT
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 ear… - The Danger of Investing in Foreign BondsUpdated: 2004-09-19 @ 02:00:10 EDT
Foreign bonds are subject to a number of risks not present in domestic issues thanks to currency fluctuations and political events. This article explains the dangers of investing in foreign bonds a… - Tests of Safety for Municipal BondsUpdated: 2004-09-19 @ 01:28:51 EDT
These tests of safety for municipal bonds will help investors learn to protect against loss and default. Municipal bond tests of safety include minimum population, credit ratings, municipal bond in… - Price is ParamountUpdated: 2004-09-18 @ 22:52:28 EDT
Finding a company with excellent financials and brilliant management is not enough to guarantee investing success. Although these attributes are vitally important in selecting stocks for your portf… - Dividend Tax - The Political DebateUpdated: 2004-09-18 @ 20:54:10 EDT
The dividend tax has come under fire lately as Congress considers President Bush's proposal to phase it out. This article presents both sides of the dividend tax debate and discusses one of the pro… - Pay for Retirement with a Cup of Coffee and an Egg McMuffin…Updated: 2004-09-18 @ 14:03:08 EDT
Saving three dollars each day can add up to a serious nest egg by the time you reach retirement. In this article, we examine how the time value of money can make seemingly small amounts grow into … - Junk Bonds - The Sexiest InvestmentUpdated: 2004-09-18 @ 13:13:17 EDT
Junk bonds are debt issues that have a bond rating of BB or less. Junk bonds are riskier than their investment grade counterparts and differ from so-called fallen angels. This article explains th… - The Emporer's New Clothes - HR-3574 - Stock Option Expense and the H…Updated: 2004-07-26 @ 06:05:50 EDT
The House of Representatives recently passed HR3574 which will over rule the FASB requirement that stock option expense be reflected in the income statement. This article details the problems with … - Buying Stock without a BrokerUpdated: 2004-07-24 @ 02:19:28 EDT
This article discusses the advantages of buying stock without a broker the three primary ways you can begin… - Where to Begin: Investing 101Updated: 2004-07-15 @ 03:57:08 EDT
Want to start investing but have no idea where to begin? This is your step-by-step guide to putting your money to work for you today… - How to Become WealthyUpdated: 2004-07-10 @ 22:48:49 EDT
These nine financial keys will help you get on the road to financial freedom, build wealth, and become rich… - The Rule of 72Updated: 2004-07-09 @ 23:26:48 EDT
The rule of 72 allows investors to project the rate of return they must earn in order to double their money over a given period of time… - The Wash Sale RuleUpdated: 2004-07-09 @ 23:08:44 EDT
The wash sale rule prohibits investors from claiming a capital loss for tax purposes on an investment if they repurchase the same investment within thirty days of the sale. This article explain the… - The 3 Types of Investment RiskUpdated: 2004-07-09 @ 19:34:03 EDT
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… - Mutual Funds 101Updated: 2004-07-07 @ 19:28:34 EDT
Mutual funds have made investing easier for millions of Americans. This article explains mutual fund basics, benefits, and selection… - Investing in Municipal BondsUpdated: 2004-07-06 @ 18:55:38 EDT
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 a… - Warren Buffett Shareholder Letters - Berkshire Hathaway…Updated: 2004-07-06 @ 14:30:09 EDT
Warren Buffett's shareholder letters have come to occupy an important place in business, finance, economic and managerial theory. These links will allow you to read Buffett's original shareholder l… - Six Steps to Retire RichUpdated: 2004-07-02 @ 01:51:09 EDT
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… - Warren Buffett TimelineUpdated: 2004-07-01 @ 17:34:33 EDT
A chronological timeline of the life of Warren Buffett, Chairman and CEO of Berkshire Hathaway. Section 1 covers 1930-1956… - Pro Forma DeceptionUpdated: 2004-07-01 @ 17:23:28 EDT
Pro forma financial statements are often abused by management. Investors should not depend on pro form financial statements unless they are certain that they present a better view of economic reali… - Index Funds - The Dumb Money Almost Always Wins…Updated: 2004-06-30 @ 23:49:39 EDT
Index funds provide a way for individual investors to match the overall returns of the stock market instead of buying mutual funds or hiring advisors to try to beat the market. This article explain… - 7 Rules of Wealth Building - Practical Steps to Amassing Capital…Updated: 2004-06-30 @ 23:14:26 EDT
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 … - Mutual Funds Under $100Updated: 2004-06-30 @ 06:08:26 EDT
Many mutual funds allow investors to open an account with as little as one hundred dollars. This list represents a sample of such mutual funds…
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