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Balance Sheet – Snapshot of a Company’s Financial Condition

A balance sheet is a summary of a person’s or organization’s balances. Along with the income and cash flow statements, balance sheet is an important tool for investors to gain insight into a company and its operations. In balance sheet, … Continue reading

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Cash Flow as Business’s Survival Indicator

Revenue does not come in at the same time as costs have to go out. This is the main problem facing by most of business companies and the whole point about cash flow. Proper management of cash flow is important … Continue reading

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Gross Margin as Business Efficiency Indicator

Gross margin is one of several profit margin measures. It is the amount of contribution to the business after paying for the costs that it incurs for producing its products and/or services. Basically, Gross Margin = (Revenue – Cost of … Continue reading

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Increase in interest rates affect stock price?

Basically the stock market tends to decline on news of rate increases. When a country raises the interest rate for its currency, we would expect that currency to gain in value relative to other currencies. This is because an increase … Continue reading

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What is Price Earnings Ratio (PER)

The Price Earnings Ratio (PER) is a measure uses in valuing both the stock market as a whole and individual stocks. PER is calculated as the ratio of a company’s share price to its earnings per-share. The value is the … Continue reading

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Earnings Per Share – EPS

Earnings per Share allows us to compare different companies’ power to make money. It is the portion of a company’s profit allocated to each outstanding share of common stock. A positive trend of EPS shows that the company is finding … Continue reading

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Outstanding Shares

Outstanding shares is used to calculate many metrics, including market capitalization and earnings per share (EPS). A corporation’s market capitalization is figured by multiplying its outstanding shares by the market price of one share. Shares that is held by the … Continue reading

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What is stock

A stock or share is not a symbol on a computer screen or newspaper. Stock is ownership in a company. This means that a private company decided to allow the public to be part owners of the firm and sold … Continue reading

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Learn Stock Investing through Modeling Warren Buffett

Warrent Buffett is the person I admire and respect. Not only he is my learning model in investment, but also my learning model for charity work. He donated billions of dollars to the charity so far! In case you never … Continue reading

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Avoid Timing the Market, use Dollar cost Averaging strategy

It is extremely difficult to time the market. Any financial market in the world experiences both bad and good times. Never expect the market will go up forever and go down forever. It is impossible. Never believe in predictions Instead … Continue reading

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