Stock basis
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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 Limitations of Return on Capital Employed (ROCE)
Return on capital employed is a valuation multiple that is commonly used in order to determine the efficiency of a company. When trying to determine whether to buy a stock, many investors use th
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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
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Margin Trading: Risks & Rewards - A Comprehensive Guide
Trading on margin is a process that involves borrowing money from your broker and using that money to purchase additional stock. This allows you to increase the potential of each investment by i
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Navigating Stock Tips: Understanding Risks and Making Informed Investment Decisions
Stock tips are commonly offered by many stock analysts and other individuals to trade the market. While a good stock tip can be a powerful tool, it can also lead to problems for investors. There
Stock basis
- Margin of Safety in Stock Trading: A Beginner's Guide
- Dividend Reinvestment Plans (DRIPs): Grow Your Investments with Small Amounts
- Profiting from a Weak Dollar: Investment Strategies
- ROIC: Understanding Return on Invested Capital & Its Significance
- Stock Valuation Methods: A Guide to Identifying Undervalued Stocks
- Understanding the Limitations of the Simple Moving Average (SMA)
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Why You Need a Will: Estate Planning for Unexpected EventsThe sudden onset of the coronavirus pandemic is forcing many people to make sure their financial health is a priority along with their personal health. At Future File, our legacy and wishes plann...
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Car Lease End: What Happens If You Don't Return Your Vehicle?Leasing a car or other personal vehicle has several benefits. The main ones that make this an option for getting some wheels are the lower monthly cost and smaller down payment. Like renting an apartm...
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Earn Free Gift Cards: Survey Sites & Rewards ProgramsEarn free gift cards with online surveys. A little time and patience can earn big rewards with on-line survey program points. Major consumer companies such as Amazon, Paypal, popular hotels, ...
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Understanding Dividend Per Share (DPS): A Comprehensive GuideDividend Per Share (DPS) is the total amount of dividendsDividendA dividend is a share of profits and retained earnings that a company pays out to its shareholders. When a company generates a profit a...