Activity ratios measure company sales per another asset account - the most common asset accounts used are accounts receivable, inventory, and total assets...
by William C. Spaulding
One method of estimating the value of an asset or a business is by calculating the discounted cash flow that the asset will earn.
by William C. Spaulding
Prices a stock by the sum of its future cash flows discounted by the required rate of return that an investor demands for the risk of owning the stock.
by William C. Spaulding
Investors can earn a profit by buying stock in 2 ways, buy the stock low and sell it for a higher price, and by receiving dividends.
by William C. Spaulding
Is the inverse of the price-earnings ratio (P/E) of stocks, and equals earnings per share of common stock divided by the market price of the stock.
by William C. Spaulding
Economic value added (EVA) is the spread between a firms return on invested capital (ROIC) and the cost of capital multiplied by the total amount of capital invested.
by William C. Spaulding
One measure to determine whether a stock is a good investment is whether the company is worth at least the value of all the outstanding stock at current market prices...
by William C. Spaulding
Any transfer of financial instruments, such as stocks, in the primary or secondary markets involves 3 processes
by William C. Spaulding
Financial ratios measure liquidity, activity, leverage, and profitability of a company as a ratio to be able to compare it to other companies, other sectors, and other times.
by William C. Spaulding
a catchall phrase that refers to the value of the business over and above the value of its assets.
by William C. Spaulding
A look behind the scenes of investment banking, from its origins to its current form.
by William C. Spaulding
The amount of a companys debt affects its profitability and its ability to grow. Debt also incurs risk for both creditors and stockholders because of the potential for default, especially in hard economic times, ...
by William C. Spaulding
Liquidity measures measure a firms ability to pay operating expenses and other short-term, or current, liabilities.
by William C. Spaulding
Margin is the use of equity in brokerage accounts as collateral to borrow money or to sell short, to cover the risk of loss, equal to the percentage of equity over the market value of the account.
by William C. Spaulding
Stock prices depends on the companys return on equity, which depends on net earnings. But some companies pay most of their earnings as dividends
by William C. Spaulding
Common stock ratios are based on financial data from income statements, balance sheets, or the cash flow statements of financial reports of the company
by William C. Spaulding
The best measure of a company is its profitability, for without it, it cannot grow, and if it does not grow, then its stock will trend downward.
by William C. Spaulding
After securities have been issued they are traded in the secondary markets
by William C. Spaulding
Stock prices, especially those with high price-earnings ratios, are usually based on future expectations, which often originate from the recommendations of security analysts
by William C. Spaulding
Before a corporation can offer securities for sale to the public, it must register the offering with the SEC
by William C. Spaulding
most investors make money by buying a stock or other security at a low price, then selling it later for a higher price but some investors make money when the price of a stock falls.
by William C. Spaulding
Most companies issue common stock, each share having 1 voting right. But some companies issue different shares divided into different classes with different voting rights and is initially apportioned to different types of investors...
by William C. Spaulding
Get yourself ready for the stock market and learn about common stocks, preferred stocks and other basic concepts
by William C. Spaulding
Blue chips or pink sheets, growth or cyclical, speculative or non speculative, there are many ways to categorize stocks.
by William C. Spaulding