Researching Investments

Currency is one of the largest and most heavily traded commodities in the world. Any nation that issues currency can theoretically participate in the market; however, the bulk of the trading...

Fair market value is the market price for an asset; that is, the larger the market, the "fairer" the price. However, there is a difference between fair market value and the intrinsic value of a...

Most people think the only way to make a profit in the stock market is when the market goes up in value. However, savvy investors know that you can make a profit as long as you know which way the...

The price you pay for a stock should be a direct reflection of how the marketplace values the company's future prospects for profitable business. You don't want to pay too much, and you want to be...

The best time to buy bank stocks (or anything for that matter) is when they're cheap. The challenge is determining which bank stocks are cheap or on sale in the market for a bargain. To do this,...

Publicly traded corporations can authorize stock splits and reverse stock splits to adjust the price at which the company shares trade on the stock markets. Either type of stock split, regular or...

Even the most savvy investor has trouble figuring out the stock market--one day it's up and the next it's down. While analysts on CNBC and other investment news outlets may claim to know the...

In finance, investors often talk about finding the "value" of something. After all, determining the value of an asset helps to distinguish a good investment from a poor one. The challenge is...

Determining the intrinsic value of a stock can be done two major ways: fundamental or technical analysis. Fundamental analysis examines the value of the stock based on earnings, debt, sales or...

Financial risk in the investment world is measured in terms of debt. Those companies which issue more debt are said to have higher financial risk. This is in contrast to companies which are...

Investors analyze a variety of factors when screening stocks for investment. Two such factors are the company's size and book-to-market ratio. A company's size, also known as its market...

Some investors begin their market investment research by studying undervalued stocks. This investment strategy can produce superior returns in the stock market, as studies show that undervalued...

One of the key indicators to look at when choosing to make an investment is what a stock's worth may actually be. This requires more than looking at the price of a stock. It requires making a...

Peter Lynch took the helm of the Fidelity Magellan fund in 1977--and turned a $20 million portfolio into one of the biggest mutual funds in existence--averaging a whopping 13.4 percent per year....

The Sortino Ratio is a modified version of the Sharpe ratio. It is used by investment managers to calculate portfolio risk. The Sharpe ratio quantifies the return (alpha) over the volatility...

Fibernocci de Pisa, in trying to find the solution to a math problem about rabbits, stumbled onto a sequence of numbers that have been found to mimic natural growth cycles. The series is as...

EV (enterprise value) to EBITDA (earnings before interest, taxes, depreciation and amortization) is a widely used ratio for valuation analysis. Also known as the Enterprise Multiple, EV to EBITDA...

Lenders use the debt service coverage ratio (DSCR) to measure the ability of a borrower to repay on a loan. In personal finance, it is most commonly used to determine the loan amount for...

Operating leverage is a measure of the return on fixed assets. Specifically, it is the ratio between a change in profits and a change in revenue. Investors view the ratio as a measure of a firm's...

Debt coverage refers to the amount of cash flow available to meet interest and principle payments on debt. There are three popular versions of debt coverage ratios, each of which entails its own...

Are you looking to trade options to supplement your income? Do you have difficulty knowing which stocks to trade options for? Defining a plan and using simple stock screens can help you meet...

Return on Equity is a profitability ratio used by analysts and investors to gauge the performance of management and the future value of a company. By comparing net income to average shareholders'...

Publicly traded U.S. corporations disclose financial statements four times a year, giving investors and analysts a view inside the company. Financial statements are crucial for understanding the...

This article will tell the reader how to calculate a company's current ratio and exactly what this figure tells the investor about the company.

A look at how to find the PEG ratio for individual stocks.

Before investing in a particular stock, an individual should endeavor to know what they should pay for the stock. A person would not purchase an appliance or car without doing the proper research...

This article attempts to provide a few good ideas of how to effectively research stocks.

Growth stocks traditionally have been a mainstay in a seasoned investor's portfolio because these companies are earning profits faster than their peers. So, does faster revenue growth equal a high...

Retirement, dream vacations, and the children's college fund are just some of the reasons people invest in the stock market. If an investor is not armed with sufficient financial knowledge these...

The stock market has historically been a wise investment. However, that does not mean that each potential investment carries the same risk and reward. An investor needs measurement tools in order...

Getting down to the core of the financial health of a company is imperative when all the information can overwhelm an investor. One important component is the calculation of Book-to-Market Ratio...

One of the most important parts of 'playing the market' is researching companies.