How To Use Finviz Stock Screener
The Finviz stock screener is currently regarded as the best by most traders. Despite its popularity, some traders still don’t know how to use...
What Is The Retained Earnings Formula?
As an investor, knowing terms related to the investment world is essential as it helps you understand what companies are up to. One such...
How To Buy OTC Stocks In Four Simple Steps
Over-the-counter stocks are don't trade on major exchanges like the NYSE and NASDAQ, so accessing OTC stocks can be more difficult. However, once you...
ETF vs. Stock: What’s the Difference?
ETFs and stocks have very similar attributes. Unlike mutual funds or other financial instruments, ETFs and stocks can easily be liquidated and traded. However,...
How To Trade Penny Stocks Without Paying Fees
It takes a lot of hard work to be a successful penny stock trader. If you’re new to trading, you probably don’t know how...
What Are Penny Stocks and Should You Buy Them?
If you're just getting into trading, you've probably heard a lot of talk about penny stocks. However, the name is a bit of a...
How To Invest in Penny Stocks
Penny stocks are just like any other stocks, but they are different in a few key areas. Trading penny stocks successfully requires a completely...
What Is EBITDA Measure And How It Effects Stocks
What is EBITDA?
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company's financial health and earnings potential...
What Exactly Is The Net Income Formula?
Net income - also known as net earnings - tells investors how much income a company generated over a given period. In order to...
Stop Loss Orders: What Are They and How to Use Them
Stop-loss orders are an important tool in any trader's toolbox. When used correctly, stop-losses can help you protect yourself from losses and limit downside...
6 Secrets to Finding the Best Day Trading Stocks
Day Trading Stocks: Top 5 Tips
Day trading can be intimidating for many investors, but finding quality day trading stocks isn't quite as stressful. If...
How To Use MACD to Trade Stocks
How To Use MACD
Millions of traders use the MACD indicator to time their entrance and exit points. It's a favorite among swing traders because...
Are Mutual Funds Still A Thing?
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...
Dividend Yield Explained
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...
Operating Margin and What You Need To Know
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....
How Profit Margin Impacts Stock Moves
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...
Debt To Equity Ratio: Here’s What You Need To Know
Debt to Equity Ratio: Explained
Leverage is a necessary yet risky aspect of corporate structure. For this reason, analysts and investors pay close to attention...
Everything You Need To Know About Net Present Value
Net Present Value: Explained
Management's main job is to create value for shareholders. How do they know if a new project will create or destroy...
What Does Earnings Before Interest And Taxes Tell You?
Earnings Before Interest and Taxes: Explained
Analysts use different methods of evaluating company performance. Earnings before interest and taxes (EBIT) is an accounting measure that...
What Are Profitability Ratios And Do They Matter?
What Are Profitability Ratios?
Companies today produce a tremendous amount of revenue, and consequently expenses. Profitability ratios express these numbers in a simple and easily...
The Cash Conversion Cycle: Everything You Need To Know
Cash Conversion Cycle: Explained
The cash conversion cycle estimates the time is takes for cash to flow through a company. Sales are the beating heart...
What Is An Oligopoly And Does It Affect You?
Oligopoly: Explained
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...
How Does The Equity Multiplier Measure Risk Of An Investment?
Equity Multiplier: Explained
Like other financial leverage ratios, the equity multiplier measures asset financing practices. However, this measure offers insight into future earnings.
What Is The...
How Can The Payout Ratio Put More Money In Your Pocket?
Payout Ratio: Explained
As a shareholder, ever wonder how much of the company's income returns to you? The payout ratio shows precisely that. Investors use...
Everything You Need To Know About Operating Income
Operating Income: Explained
Analysts and investors measure companies in various ways, many relating to the amount of profit produced in a given time. Operating income...
How Do Profitable Traders Use Limit Orders?
Limit Orders: Explained
Order types are an edge that trades use in the market. A limit order guarantee trade execution at predetermined prices. This mitigates...
How Do Companies Use Accounts Receivable Turnover?
Accounts Receivable Turnover: Explained
Like banks, companies extend credit to consumers. This allows for the immediate purchase of goods with payment in the future. Accounts...
Will Cyclical Unemployment Affect You In The Future?
Cyclical Unemployment: Explained
Business cycles are an unshakable part of world economies. Cyclical unemployment trends repeat over time and affect everyone in the workplace.
What Is...
What Are Market Orders And Should You Be Using Them?
Market Order: Explained
Different order execution types exist in the market. This is to compensate for different trading styles. Often the cheapest is a market...
What Is Simple Interest? Find Out Now!
Simple interest exists in most short-term loans. such as a car loan. The payment calculation varies from a compound interest loan. Understanding the difference...
What Does Retained Earnings Tell You About A Company?
Management decides how to spend surplus income in a number of ways. Retained earnings shows investors how their profits drive future growth of the...
Is Conflict Theory Still Relevant In Today’s Economy?
Conflict theory is an age old phenomenon that some believe still rules culture today. Regardless of opinion, how can one position themselves for success...
What Is Purchasing Power? Is You’re Money Dissapearing?
Imagine if you earned the same salary today but lived in the time of your grandparents. There's a good chance that you would be...
What Is A monopoly market And Do They Exist Today?
A monopolistic market or monopoly market is significant for several reasons, one being it is so rare. In the past, companies experienced vast profits...
How To Use Leverage Ratios In Financial Analysis
A leverage ratio is a simple measure of a company that tells a complex story. One cannot properly evaluate a firm without it.
What Is...
What Is Inventory Turnover And Should You Be Using It?
What Is Inventory Turnover?
A company sells products to its costumers in hopes of turning a profit, this is business 101. However, what if the...
What Does The Gross Profit Margin Tell You?
Gross Profit Margin: Explained
Like many other financial ratios, gross profit margin helps determine the underlying health of a company. However, this metric has immediate...
Cost Of Capital And What It Means For Investors
New business ventures ultimately grow companies and provide shareholders a return on their investment. For this reason, financing decisions make or break a company's...
Why Is The Cost Of Goods Sold So Important?
Many individuals start businesses, however, few achieve profitability. Many costs exists in starting and maintaining operations. The cost of goods sold (COGS) is among...
Here’s Why You Need To Care About Gross Profit
Income statements show gross profits at the very top of the page. That's why you often hear gross earnings referred to as "top-line earnings". ...
Gross Income and Taxes: A Complete Guide
What Is Gross Income?
Receiving a paycheck is great, but how does one measure their salary income versus what they take home? Gross income measures...
Here’s How To Use Weighted Average Cost Of Capital (WACC)
The weighted average cost of capital (WACC) is an umbrella measure of risk, valuation, and expected return. Often misunderstood, this valuable metric provides tremendous...
How Does A Proxy Vote Impact Shareholders?
Individuals own stock for a variety of reasons, most notably to accumulate wealth. Owning stock gives investors partial ownership of a company, which comes...
Here’s How To Use Current Ratio To Evaluate Companies
Investors and analysts use certain accounting measures in measuring the risk of companies. Financial statements are sometimes convoluted, or even too in depth for...
What Does Shareholder’s Equity Mean?
Shareholder's Equity (SE) is a financial metric used by analysts to determine the health of a company. Accountants estimate the value of the company...
Explaining The 10-K Report – What You Need To Know
Sophisticated investors know their way around the 10-K report. It is a document released annually by companies to shareholders. Furthermore, the format is typically...
What Does Pattern Day Trader Mean?
Pattern Day Trader is a FINRA designation for participants in the stock market. The regulatory body differentiates frequent trading activities by professionals apart from...
What Is ATR And How Do Traders Use It?
Financial instruments have personalities. Not in the sense that they are humble or funny, but rather the way they move. ATR or average true...
What Is An IRA And Should You Have One?
IRA Explained
IRA stands for Individual Retirement Account and is a way for investors to save for retirement in a tax-efficient way. Many different tools...
What Is Free Cash Flow And How To Use It To Evaluate Stocks
Free Cash Flow (FCF) Defined
Free Cash Flow or FCF is another measure of a company's financial performance. Operating cash flow minus capital expenditures results...
Everything You Need To Know About The Income Statement
Income Statement Explained
Without audited financial statements, how can investors know the health of their investment? The income statement is an integral document detailing how...
What Is APR And How It Affects You
Understanding APR
APR stands for Annual Percentage Rate and is the amount the borrower is charged yearly over the term of the loan. Its most...
What Is IRR And How Do Companies Use It?
Investing: What is IRR?
Management's main goal is creating shareholder value. Achieving this requires capital budgeting decisions that give positive expected returns, also known as...
What You Need To Know About Gross Margin
Gross margin is a financial measurement that reveals how much it costs for companies to manufacture the goods it sells. It is the most...
What Is TTM And How Can You Use It?
TTM stands for trailing twelve months. It's used to represent the performance of company. That said, TTM is calculated manually by adding the last four...
What Is RSI And How Exactly Should You Use It!
What Is RSI?
RSI stands for relative strength index, it's a technical analysis indicator that traders use to gauge momentum and if a stock is...
What Is Yield and How To Calculate It
What Is Yield
Yield is the returned income on an investment. This typically refers to income generated from interest or dividends. For the most part,...
What Is ROI or Return On Investment?
What Is ROI?
The return on investment (ROI) is a ratio that measures the income earned on the invested capital. Return on investment is often...
Return on Equity. What Is It And Should You Care
What is 'Return on Equity'
Return on equity (ROE) is one factor used to determine's a firm's growth rate. It's the amount of net profits...
Moving Averages – What You Need To Know
Simple Moving Average
A moving average is primarily used as an indicator to gauge the momentum and trend for a stock, bond, commodity, or currency.
A...
What Is A Bear Market And What To Watch Out For
Bear Markets
A bear market is a financial term used to express when the price of a group of stocks, bonds, currencies, or commodities are...
What Is A Bull Market And How To Spot One
Bull Market
A bull market is a financial term to used to express when the price of a group of stocks, bonds, currencies or commodities...
What Is Volume And Why Does It Matter
What Is Volume And Why It Matters
Volume is the number of shares traded in a stock or ETF during a given period of time.
Examples...
What Is P/E Ratio And Should You Care?
What Is "P/E Ratio"
The P/E ratio is the ratio of the current stock price to last year's earnings. It is also known as the...
What Is Volatility And Why Does It Matter
What Is Volatility In The Market Mean?
Actual volatility is the measure of the amount of randomness in an underlying asset at any point in...
Should You Average Down On Your Trades?
What Does The Term Average Down Mean In Trading?
The term averaging down in stock trading is the act of buying more shares to improve...
