The Moving Average Convergence/Divergence Indicator – MACD Millions of traders use the MACD indicator to time their entrance and exit points. It’s a favorite among swing traders because it
More than $49 trillion in assets are kept in global regulated open-end funds, according to data from the Investment Company Institute. That said, roughly $21.8 trillion of total net assets are held in
If you’re interested in receiving passive income from the stock market, then dividend stocks might be the right choice. To attract investors some companies will pay a cash dividend as a way for
If you speak to most investors, they’ll tell you that the fundamentals matter. The price of a stock can only tell you so much. Is the company growing its revenues? Is its EPS rising? How about i
Analysts and investors can get a better grip on the financial health of a company by reading its quarterly and annual earnings statements. The profit margin (aka net income margin) is one of the most
Leverage is a necessary yet risky aspect of corporate structure. For this reason, analysts and investors pay close to attention to a company’s debt to equity ratio. This reveals capital structur
Management’s main job is to create value for shareholders. How do they know if a new project will create or destroy value for the firm? Net present value serves as a guide for these decisions. W
Analysts use different methods of evaluating company performance. Earnings before interest and taxes (EBIT) is an accounting measure that describes core profitability. What Is Earnings Before Interest
Companies today produce a tremendous amount of revenue, and consequently expenses. Profitability ratios express these numbers in a simple and easily comparable format. What Are Profitability Ratios? P
The cash conversion cycle estimates the time is takes for cash to flow through a company. Sales are the beating heart of any business, but the sales process is complex. What Is The Cash Conversion Cyc
Before entering a business space, one measures risk and competition. An oligopoly offers tremendous upside potential with limited competition. What Is An Oligopoly? Unlike a monopoly, an oligopoly has
Like other financial leverage ratios, the equity multiplier measures asset financing practices. However, this measure offers insight into future earnings. What Is The Equity Multiplier? The equity mul
To traders, profits are the life blood of business. Without them, business ceases and traders leave the market. Successful traders use stop loss orders to protect profits. What Is A Stop Loss? A stop
As a shareholder, ever wonder how much of the company’s income returns to you? The payout ratio shows precisely that. Investors use this measure when making investment decisions. What Is The Pay
Analysts and investors measure companies in various ways, many relating to the amount of profit produced in a given time. Operating income measures the performance of the company’s core operatio
Order types are an edge that trades use in the market. A limit order guarantee trade execution at predetermined prices. This mitigates risk for sophisticated traders. What Is A Limit Order? A limit or
Like banks, companies extend credit to consumers. This allows for the immediate purchase of goods with payment in the future. Accounts receivable turnover measures how effectively companies turn credi
Business cycles are an unshakable part of world economies. Cyclical unemployment trends repeat over time and affect everyone in the workplace. What Is Cyclical Unemployment? Economists classify causes
Different order execution types exist in the market. This is to compensate for different trading styles. Often the cheapest is a market order. What Is A Market Order? A market order tells a broker to
Simple interest exist on most short-term loans. such as a car loan. The payment calculation varies from a compound interest loan. Understanding the difference helps a borrower budget appropriately. Wh
