Stock basis
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Navigating Rising Interest Rates: Investment Strategies for Long-Term Success
With interest rising rates you need to think long and hard about what you are going to do with your money. Investing when interest rates are climbing is much different than investing when they a
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Understanding Depreciation Methods: The Impact of Assumptions
A company can use depreciation methods to reduce taxable income, defer taxes to a later date or even show improvements in earnings or value. If you are not involved in accounting, you may be sur
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Accelerated Depreciation: Benefits & Tax Advantages
Accelerated depreciation allows a company to count a higher portion of depreciation of an assets value to the early years of the assets use. Essentially, the company is stating the asset will be
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Dual-Class Stock Shares: Risks & Investor Concerns
Many companies offer a dual class of shares of stocks, which means there are two ways to participate in company ownership. Typically, one of the share classes grants more control over the compan
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Understanding Market Growth: Factors & Trends
Market growth is the measure of how desirable a product or service is on the general market. It is essentially a measure of the change in demand over time. Of course, demand does not exist in a
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Understanding Market Share & Growth: A Business Guide
A company’s growth and its business market share (the percentage of total profits of its industry that it controls) have varying degrees of positive correlation. Depending on the nature of
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Understanding Beta Risk Assessment in Finance
In finance, beta risk is a comparison of the volatility of a stock or security, in comparison to the market as a whole. The market as a whole is said to have a beta of 1.0. If an individual se
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Understanding International Investment Risks: A Comprehensive Guide
Investing abroad is a source of several types of international risk. As an investor, you need to be aware of what types of international risk are present. Here are a few things to consider about
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International Investment Opportunities: A Guide for Diversification
International investment opportunities can provide a solid way for investors to diversify their portfolios. There are several different types of investments in this category that an investor cou
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Altman Z-Score: Predicting Corporate Bankruptcy
Z-scores are the numbers that are calculated using the Altman z-score mathematical formula. The formula uses corporate financial data to predict whether or not a company will go bankru
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Understanding the Fama-French Three-Factor Model: An Overview
The Fama-French three factor model is adapted from the Capital Asset Pricing Model (CAPM). The CAPM attempts to measure a good price for a security based on the risk of the security, but the Fam
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Small Cap Stocks: Risks & Downsides for Investors
Small cap stocks are stocks of companies that have a market capitalization of somewhere between $300 million and $2 billion. This type of stock can provide several advantages to investors. Howev
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Inventory Turnover Ratio: Calculation & Importance
Calculating inventory turnover requires dividing the cost of goods sold at a business by the average inventory value. Both figures used in the equation can be found in a firm’s financial s
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5 Key Business Efficiency Ratios to Track
Financial ratios can be used to measure business efficiency, and once you understand them, youll be guided in the right direction. Some ratios can even indicate how long your business would be a
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Unlocking Cash Flow: How to Optimize Your Accounts Receivable
Inefficient accounts receivables can be a sign of a company that is in financial trouble. If your company struggles with accounts receivables, you may need to assess the source of your problems.
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Understanding Preferred Stock: Types, Benefits & Investment
Preferred stocks, also known as preferred shares, are equity securities that get preferential treatment over common shares. These shares can be considered hybrid securities because they also sho
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Understanding Days Sales Outstanding (DSO): A Key Metric for Cash Flow
When measuring revenue collection for a company, days sales outstanding is the calculation most people choose. Also known as average collection period, days sales outstanding essentially gauges
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Convertible Preferred Stock: Understanding How It Works
Convertible preferred stock can be traded for a fixed amount of common stock at a given time in the future. Typically, the conversion occurs after a given date. However, the stockholder or corpo
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Understanding Conversion Ratios: A Simple Guide
The conversion ratio on any type of convertible security is the number of common shares the security holder will receive when the conversion is exercised. The conversion ratio is found with a ve
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Understanding Pro Forma Earnings: A Guide for Investors
Pro forma earnings statements are not designed to catalogue actual company finances. Instead, they are used to project earnings anticipated from a given project or expansion. Pro forma literally
Stock basis
- Understanding Average Growth in Stock Valuation
- Effective Communication with Stock Brokers: Maximizing Investment Success
- Stocks vs. Other Investments: Why Grow Your Wealth with Equity?
- Understanding Currency Exchange Rates: A Comprehensive Guide
- Understanding Depreciation Methods: The Impact of Assumptions
- Value Investing Risks: Avoiding Common Pitfalls & Pitfalls
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Calculating Free Cash Flow to Equity (FCFE): A Comprehensive GuideFree Cash Flow to Equity (FCFE)Free Cash Flow to Equity (FCFE)Free cash flow to equity (FCFE) is the amount of cash a business generates that is available to be potentially distributed to shareholders...
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Maximize Savings in a Low-Interest Rate Environment
The Federal Reserve made two emergency rate cuts back in March to insulate the economy against the financial impact of the coronavirus pandemic. While this was good news for many borrowers, it w...
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Save Money: Strategies to Reduce Your Time Warner Cable BillA couple sitting in the living room discussing bills. Lowering a Time Warner Cable bill often comes down to cutting back on channel selection. You can also take advantage of discounts and pro...
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Interest Rate Parity (IRP): Understanding the RelationshipThe interest rate parity (IRP) is a theory regarding the relationship between the spot exchange rateSpot PriceThe spot price is the current market price of a security, currency, or commodity avai...