investing
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Reducing Balance Interest Rate: Calculation & Understanding
Use a spreadsheet to create an amortization table to track a reducing balance loan. Calculating a reducing balance interest payment is simple and straightforward. The interest rate is stated
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Currency Speculation: Understanding the Market & Trading
Central bank leaders sometimes intervene when speculation drives currency prices too high or too low. Currency speculating is the buying and selling of currencies for the purposes of profitin
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Understanding Equally Weighted Indexes: Calculation & Benefits
Equally weighted indexes make it easy to total gains and losses. An index contains multiple securities, such as stocks and bonds. If you invest by following an index, you buy the same securit
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Understanding Risk Grades: An Investor's Guide
Risk grades are determined using historical financial data. Risk grade is an investment rating used to determine relative volatility between forms of securities. An assessment helps investors
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Gross Revenue vs. Gross Income: Understanding the Difference
Revenue does not always translate into profitability. Gross revenue and gross income are two critical figures for an analyst evaluating the health of company. While gross revenue indicates ho
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Deferred Tax Assets & Liabilities: Balance Sheet Presentation Explained
Deferred tax assets and liabilities are the direct results of deferred taxes, which are based on temporary differences in recorded revenues or expenses between accounting books and tax returns. In oth
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Tangible vs. Intangible Personal Property: Key Differences
Personal property is anything you own other than land and buildings. Land and buildings are called real property or real estate. You can own tangible personal property and intangible personal property
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Understanding Silent Partner Profit & Liability: A Comprehensive Guide
Silent partners are typically individuals who invest money in a company, but who have no responsibility for the company's day-to-day operations. Silent partners might range from parents investing
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Understanding Paid-In Capital: Causes & Impact on Your Balance Sheet
Issuance of common and preferred stocks may increase the paid-in capital. As the third part of a balance sheet, stockholders' equity includes a section for paid-in capital, which encompas
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Understanding the Accounting Process: A 6-Step Guide
Six Steps of the Accounting Process The accounting process consists of a series of tasks often referred to as accounting steps. The process goes through cycles in which the same accounting st
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Avoid Costly Mistakes: 7 Common 401(k) Errors to Prevent
Most 401k plans are employer-sponsored. 401k plans offer a way for individuals to save money for retirement. The retirement account offers several benefits, but many individuals don't max
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Net Receivables Calculation: A Step-by-Step Guide
How to Calculate Net Receivables From the Balance Sheet It's a sad but true fact that, from time to time, a company might not be able to collect all the money owed it. This is an expense
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Understanding Dividends on Cash Flow Statements: A Guide
A company pays dividends to common stockholders as a distribution of its earnings, which can add to stockholders' returns. Although a company pays dividends from earnings on its income statement,
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Understanding U.S. Treasury Instruments: A Guide for Retirement Planning
The U.S. Treasury issues bonds, bills and notes known as instruments. Any investment professional will tell you unequivocally that Social Security alone isn't enough to ensure a person a
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Portfolio Beta vs. Standard Deviation: Understanding Investment Risk
Employees looking at business data on tablet Modern portfolio statistics attempt to show how an investment's volatility and return measure against a given benchmark, such as U.S. Treasury
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Profitability Ratios: Understanding Your Company's Profitability
Financial managers and analysts can discern how profitable a company is based on profitability ratios. A company is profitable when its expenses and other costs associated with producing products or o
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Understanding Net Cash Decrease: A Comprehensive Guide
More cash outflows than inflows leads to a net decrease in cash. A company's cash flow statement shows its cash inflows and outflows during an accounting period. The statement categorizes
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Deemed Dividends: Understanding Tax Implications for Investors
What Is a Deemed Dividend? A deemed dividend is a tax instrument used by publicly traded corporations as a means of shifting tax liability from shareholders during the sale of company stock.
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Calculate Stock Price Appreciation: A Simple Guide
When it comes to investing, you have to monitor how your stocks are faring to determine if you're successful. Figuring your stock gains and losses in absolute terms tells you how much you've m
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Accrued Expenses and the Income Statement: Understanding the Impact
In accounting, not all cash expenditures are expenses for an income statement. Conversely, when using accrual-based accounting, expenses can occur in the income statement without showing any cash paym
investing
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- Cashing Stock Certificates: A Step-by-Step Guide
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- Understanding the U.S. Dollar's Value: What Backs It?
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Understanding Cryptocurrency: A Beginner's Guide to Digital AssetsWhat are cryptocurrencies and how do they work? ...
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Unlock the Potential: Benefits of Online Trading PlatformsDevelopment of Cryptocurrencies These past few years have been very important for the development of cryptocurrencies. Many have even come to crown 2017 as the year of the Bitcoin as this topic ...
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COVID-19 Stimulus Payments: 39 Million Households to Receive Funds Starting July 15Will you get more relief money in yo...
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Modified Accrual Accounting: A Comprehensive GuideModified accrual accounting refers to an accounting method that combines cash-basis accounting and accrual-basis accounting. It follows the cash-basis method to record short-term events and follows th...