Investing for Beginners

A fundamental lesson for any first-year business student is how to calculate the cost of debt. Specifically, how to calculate the weighted average (debt and equity) cost of capital in order to...

During the recent drop in the stock market most people have lost their faith in the market as a worthwhile investment. I'm here to tell you that if you do just a small amount of research you...

Credit rating agencies are privately organized companies set up to apply ratings to individual debt securities and entire entities that wish to issue bonds within capital markets. The issuers of...

Financial ratios are calculated measurements taken to analyze the economic welfare of a business. The ratios often compare financial statement data with stock market trading information for...

Financial ratios refer to statistical accounting data that is calculated to gauge the performance of all businesses. These ratios are commonly associated with publicly traded corporations to...

Credit rating agencies evaluate the ability of a corporate or municipal entity to repay its debt. CRAs also provide ratings to individual debt securities, such as bonds. Both issuers and investors...

When a company issues common stock, it is called either an initial public offering or a secondary offering. The initial public stock offering, or IPO, gives existing shareholders liquidity by...

How you should invest $1,000 depends on your current financial situation, how soon you will need the money and your risk tolerance. You can choose to diversify your investment into a variety of...

Financial ratio formulas can be used to determine a companies stability, long term growth, and investment potential. Using these basic ratio formulas can give you an objective insight into...

The financial market can be divided into the capital market and the money market. The capital market encompasses long-term debt and corporate stocks. The New York Stock Exchange is probably the...

Building wealth is an essential part of gaining financial independence and being able to retire the way you want to. With all the investment and savings options available it can be difficult to...

The term "market value" can be used to describe a couple of different scenarios. The true meaning of the phrase depends on the context in which it is being used, but it is generally used to...

In 1909, John Moody created a system that's still used to rate the creditworthiness of securities and judge how strong banks are in the current economic system. Moody's Investor Services rates...

Credit rating agencies are third parties responsible for the timely and complete review of the structure and ability to pay by debt issuers. Debt issuers pay for these ratings and the results are...

Investing offers you the ability to attain your financial goals, whether they include saving for the down payment of a house, building a sizable retirement fund or ridding yourself of debt. In...

The investment banker serves multiple roles as an adviser to a company. The banker must understand the current situation of the company and help it move in the direction it wishes to go. This...

Debt can be purchased in many ways and forms. The bigger challenge is determining the best forms of debt to buy. For most investors, buying corporate debt directly from the issuing company is not...

The dividends from preferred stock are very consistent relative to the dividends from common stock. In fact, the stability of the preferred stock dividend makes it more similar to the payment of...

Annual compound interest is calculated by adding the extra debt to the total amount. Learn the dangers of paying annual compound interest with this free video from an experienced floor trader on...

A bond is essentially a debt that funds a company, and that will be paid back with interest. Understand bonds and how it's different than equities with tips from a financial planner in this free...

The important technical point for the volatility of stock prices is the supply and demand picture for a stock at any one time. Brokers day trade between the bid and offered quotes all day to...

Reading stock ratios can help the investor rank stocks in the same industry on a relative basis. It is important to appreciate that stock prices are greatly affected by industry-wide conditions...

The federal government has a large and complicated scheme for funding the federal budget. Funding the budget requires the issuance of debt across the entire debt spectrum. Called "treasury bond...

Preferred stock serves many uses as a security that contains elements of debt and equity. Many of the terms of issuance are defined so that the flexibility to redeem or call the maturity rests...

Company profit is measurable through balance sheets and cash flow. Management may recognize opportunities that can't be met because the cash flow of the company can't generate the large amount of...

There is no more important, yet overlooked aspect of life than responsible personal finance. Creating it brings a happiness and ease of life, by erasing the many stresses on financial challenges...

Picking winning stocks at any time is tough, but doing so in a recession is even harder. Follow these steps to improve your chances at finding the diamonds in the rough.

Avoiding credit card debt is important for keeping your credit rating as high as possible in order to get approved for home and car loans. Pay off credit cards fully, and make sure interest rates...

The stock market is crashing and home prices are going off a cliff. Is it possible we are entering a depression? I think we are entering the most difficult economic times since the Great...

Creating Wealth is like building a house. You must have a strong foundation or else the whole structure is at risk of falling apart. These are the steps to building a strong financial foundation.

When it comes to investing, sometimes the best thing you can invest in is yourself. This article tells you how.

Congratulations! You've come into a windfall--and it couldn't have come at a better time--but now you face a happy dilemma. What should you do with it? This article helps you sort through the...

More obviously now than ever, the U.S. economy is in a down-spiraling recession. Here are some ways you can stay in the green during these difficult financial times.

Making the right financial decisions in your 20s can long-term give you a great lifestyle for the rest of your life. The following are some tips I've learned through seeking out people who were...

Along with daily life, sometimes investing for your family's future can feel like a juggling act. It can easily feel like your focus is divided in many directions-covering your family's living...

One million dollars isn't what it used to be. But it is a lot of money and becoming a millionaire is a goal for many people. It's possible to gain a net worth of seven digits when you start out...

When you're learning how to invest money, it's wise to learn from the masters. These tips learned from professional money managers will help you get started on your way to investing for retirement...