investing
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Residual Income: Pros & Cons Explained | Financial Freedom
Most workers earn income by performing tasks and receiving compensation from an employer or a client paying for services. Earned income is compensation made through active work that results in an imme
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Understanding Monetary Systems: A Comprehensive Guide
Monetary systems are at the heart of macro-economics. You can trace back all economic forms to the monetary system that makes them run. A monetary system deals with the nature of legal currency, the c
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Commercial Bank Balance Sheet: Key Assets & Liabilities Explained
A balance sheet consists of various assets on one side and liabilities and owners' equity on the other side. Liabilities and owners' equity are also referred to as claims against an entity'
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Understanding Trend Percentages in Financial Statements
A trend percentage converts non-base-year amounts into percentages. A trend percentage is a type of horizontal analysis that shows a change in a financial statement account over a period of t
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Understanding TERP: Calculating Theoretical Ex-Rights Price
Seasoned equity offerings can reduce the value of all shares. During a rights issue, a company raises capital by offering new shares of its stock to its shareholders. In theory, the sharehold
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Understanding Convertible, Inconvertible, and Representative Money
Convertible, inconvertible and representative money are forms of what economists call paper money. Currency that you can quickly convert into another type of currency is convertible money. Cu
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Understanding Weighted Averages: Benefits & Applications
Weighted averages are often used to evaluate stock portfolios. Weighted averages, or weighted means, take a series of numbers and assign certain values to them that reflect their significance
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Vertical Analysis of Cash Flow Statements: A Step-by-Step Guide
A company's cash flow statement shows its cash inflows and outflows for an accounting period. A comparative cash flow statement shows these amounts for two or more consecutive periods in side-by-s
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Grocery Store Liquidity Ratio: Understanding Industry Standards
Liquidity ratio mostly refers to the current ratio, a main financial metric for measuring a company's ability to pay off its short-term liability obligations. The current ratio is calculated as cu
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Portfolio Analysis: Benefits, Drawbacks & How to Optimize
Analyzing the risk and return characteristics of your portfolio can help you keep on track with your investment goals. A portfolio analysis is a useful tool in evaluating how your investment
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Understanding Vanguard 401(k) Withdrawal Rules & Procedures
Vanguard 401k Terms of Withdrawal Like other 401k plans, the Vanguard plan allows employees to have a percentage of their pretax pay dedicated to the plan, with employers matching up to a set
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Understanding Stockholders' Equity: Factors & Impact
Equity is assets minus liabilities, or value minus debt. In a company, equity belongs to the owners, which for publicly traded companies means the shareholders. Anything on the balance sheet affects a
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Payback Period Method: Pros, Cons & Capital Project Evaluation
Companies engage in capital projects as they grow. A capital project -- like the purchase of new equipment or building a facility -- involves a large financial investment from which the company expect
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Calculate Standard Deviation from Frequency Distribution: A Step-by-Step Guide
High standard deviation implies higher volatility. Analysts and researchers can use frequency distributions to evaluate historical investment returns and prices. Investment types include stoc
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Understanding Why R&D Expenses Are Expensed, Not Capitalized
Female scientist using microscope. The accounting rule for research and development costs, or R&D, is simple: R&D is an expense. In theory, R&D outlays may lead to substantial ass
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TSP Hardship Withdrawals & Loans: What You Need to Know
A thrift savings plan, or TSP, can be a valuable retirement account for federal employees because of its tax-favored status. This advantage is given in exchange for less access to your money before re
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Omnibus Stock Plans: A Comprehensive Guide for Employees & Executives
An omnibus stock plan comprises a number of different programs that encompass a range of employee, executive, board member and consultant incentives. These cover common and preferred stock, options an
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Calculate MIRR on Your Financial Calculator: A Step-by-Step Guide
How to Calculate MIRR (Modified Internal Rate of Return) on My Financial Calculator Warning Different financial calculators may have different key labels and may require you to input the calc
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Land Development Investment Proposal: A Comprehensive Guide
Getting involved in real estate development can provide you with an opportunity to generate a substantial income within a short period of time. When you have the idea for a real estate development pro
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Understanding Basis Point Changes in Bond Yields
When looking at terms used in calculating returns for bond yields, both percentage and basis points come up. Basis points are used for both Treasury bonds and municipal bonds. While a percent is 1/100
investing
- Understanding Stock Charts: A Beginner's Guide to Technical Analysis
- Investing in Stocks: Long-Term Growth & Advantages
- Withdrawing from Your 403(b): Understanding Early Withdrawal Options & Penalties
- Understanding FCC IRAs: A Guide to First Clearing Retirement Accounts
- Vertical Analysis of Cash Flow Statements: A Step-by-Step Guide
- Understanding Share Prices: A Guide to Calculation & Market Cap
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Landlord Lease Agreement: A Comprehensive GuideBeing a landlord has its pros and cons, but being savvy about your lease agreements or rental contracts is key to keeping frustrations to a minimum. Whether you are simply renting out an extra room in...
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Check Your Wisely Card Balance: Multiple MethodsThe ADP Aline card, now known as the Wisely card, is a way for your employer to provide direct deposit services on payday. This specialized card is not a bank account or a credit card and it involves ...
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Stackable Credentials: Boost Your Career Without a Full DegreeStackable credentials are short courses that work both as certificates and as building b...
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Understanding Auditors: Roles, Responsibilities & Audit ProcessesAn auditor is a person or a firm assigned to perform an audit on an organization. An audit is a structured, methodical process that includes an examination of books, accounts, records, or various docu...