Also known as ‘leverage,’ the debt-to-equity ratio indicates the relative proportion of a company’s debt to total shareholder equity.
Given that debt is looked at relative to shareholder equity, the debt-to-equity ratio is often given greater consideration than the debt ratio for determining leverage and risk. Similar to debt ratio, a lower debt-to-equity means that a company has less leverage and a stronger equity position.
If a company’s debt-to-equity ratio is steadily increasing, it means that an increasing amount of its financing is being sourced by creditors versus cash flows or equity financing.
Fixed income funds, also known as bond funds, invest primarily in bonds, but might also include some preferred stock...
A 457 is a deferred compensation arrangement that is available to some government employers and non-profit organizations
The Bid-Ask Spread is the amount by which the ask price exceeds the bid. For example, if the bid price is $50 and the…
Income trusts are a type of company that has been structured to pass through all earnings to shareholders
The Broadening Wedge Ascending pattern forms when a stock price progressively makes higher highs and higher lows
The Price to Cash Flow Ratio is a valuation measure that looks at a company’s stock price relative to its cash flow/share
Intrinsic Value is the value of a security which is “built into it.” Both options and stocks have it, but it is different
Cash Available for Distribution is a term used in REITs for the balance of earnings left over after expenses have been paid
Standard Deviation is a measurement of how far from the average (mean) the majority of a data set lies
“Adding to a loser” describes continuing investment in a stock or fund that has continued to decline