Shareholder’s equity, in the standard accounting equation, is the amount of assets and retained earnings in a company over and above the company’s liabilities. Return on Equity is a ratio which divides the net income of a company by the total shareholder’s equity in a company, which is effectively looking at the profitability of the profits of a company.
It is sometimes called “Return on Net Worth.” This ratio and similar ratios help analysts and investors compare companies to their peers in their respective industries and to find those who seem to be able to sustain and increase their business’s profit margin year after year.
This style of analyzing a company and it’s stock, where the company’s book values are combed through and the market position of the company is taken into consideration, is known as fundamental analysis.
Fluctuations are represented in terms of volatility, and different types of investments experience different levels
This article and the ones that follow should give you a solid foundation in the knowledge of stocks and their use as...
Employer contributions in the form of company stock can pose some liquidity issues, but it can also be a nice benefit
There are several types of retirement plans that employers can provide, but 401(k)s are one of the most popular
As of 2016, you may contribute up to $53,000 annually to your Self-Employed 401(k), plus a $6,000 catch-up contribution
There is no formal definition for what makes a company a blue-chip stock, but the general category includes some of...
The Accounts Receivable line will contain the amounts owed to the company which are due to be received in the near future
Earnings before tax (EBT) is used to look at cash flows after expenses but before taxes. In a world without tax, this...
The Broadening Bottom pattern is formed when a stock price progressively makes higher highs and lower lows
The Descending Triangle pattern has a horizontal bottom which represents the support level, and a down-sloping top line