1. Investing

    Why do share prices fall after a company has a secondary ...

    The best way to answer this question is to provide a simple illustration of what happens when a company increases the number of shares issued, or shares outstanding, through a secondary offering. Let's ...
  2. Investing Basics

    12 Things You Need To Know About Financial Statements

    Discover how to keep score of companies to increase your chances of choosing a winner.
  3. Personal Finance

    Breaking Down The Balance Sheet

    Knowing what the company's financial statements mean will help you to analyze your investments.
  4. Bonds & Fixed Income

    Evaluating A Company's Capital Structure

    Learn to use the composition of debt and equity to evaluate balance sheet strength.
  5. Investing Basics

    The Working Capital Position

    Learn how to correctly analyze a company's liquidity and beat the average investor.
  6. Fundamental Analysis

    Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  7. Mutual Funds & ETFs

    IMF Or ETF: Which Is Right For You?

    Here's what the professionals think about these similar, but critically different, investment vehicles.
  8. Fundamental Analysis

    The One-Time Expense Warning

    These income statement red flags may not spell a company's downfall. Learn why here.
  9. Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

    These statistical measurements highlight how to mitigate risk and increase rewards.
  10. Options & Futures

    Find Investment Quality In The Income Statement

    Use these key attributes to uncover top-level investments.
  11. Forex Education

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
  12. Economics

    What You Should Know About Inflation

    Find out how this figure relates to your investment portfolio.
  13. Investing Basics

    How To Evaluate A Company's Balance Sheet

    Asset performance shows how what a company owes and owns affects its investment quality.
  14. Investing

    Do ETFs have a board of directors?

    Yes. An exchange-traded fund (ETF) is a type of security that tracks a basket of assets or an index (such as an index fund), but trades like a stock.Just like any open-end mutual fund, an ETF falls under ...
  15. Active Trading

    Morningstar's Trifecta: An Easy Way To Select Mutual Funds

    These three pieces of Morningstar's trifecta can help you understand the quality of mutual funds.
  16. Economics

    Cautionary Signs For International Investors

    "Going global" is a fashionable investing style, but investors should know the risks.
  17. Options & Futures

    Do Money-Market Funds Pay?

    This investment provides security, but its returns may not be adequate for long-term investors.
  18. Mutual Funds & ETFs

    Fund Transactional Activity

    Portfolio turnover is one of the simplest measures of mutual fund quality quality. Find out how to measure it.
  19. Investing

    Can I sell mutual fund shares below their minimum intial ...

    Yes. You can freely buy and sell shares of a mutual fund regardless of any requirement for a minimal initial purchase amount or the application of a redemption fee. In this sense, the investment is completely ...
  20. Active Trading Fundamentals

    Can you place a stop-loss order on a mutual fund?

    First, remember that a stop-loss order is a limit order placed with a broker to sell a stock when it reaches a certain price. It is designed to limit an investor's loss on a stock position. Therefore, ...
  21. Investing

    How do I find mutual funds that track indexes?

    The two best sources for finding index funds are Fidelity Investments and Vanguard.Of the 57 index funds in investment research firm Morningstar's database, two fund companies account for 39 of them - ...
  22. Active Trading Fundamentals

    Is it possible to buy mutual funds using a margin account?

    Because of the pricing/trading mechanisms used with mutual funds, they cannot be bought and sold like stocks. When trading stocks, an investor can place limit orders, engage in short selling, buy on margin ...
  23. Investing

    Why doesn't the price of a callable bond exceed its call ...

    A callable bond provides the issuer (borrowing entity) with an option to redeem the bond before its original maturity date. The ability to call a bond gives the issuer a way to respond to falling interest ...
  24. Investing

    How do you determine a company's percentage of credit sales?

    First, we should establish the fact that, depending on the industry, most companies' sales are sold with terms of payment (credit sales), typically ranging from 30 to 90 days. Obviously, the use of cash ...
  25. Investing

    What is fair capital?

    So-called "fair capital," like beauty, is in the eye of the beholder.In financial reporting, there are two kinds of capital: debt and equity. In a company's balance sheet, the former is generally considered ...
  26. Investing

    Can an open-ended fund's price appreciate significantly?

    Theoretically, open-end mutual fund prices can experience a significant increase in price. However, three factors need to be considered to provide a practical answer to the question.First, open-end mutual ...
  27. Investing

    A company I recently looked up showed institutional holdings ...

    It is obviously not technically possible for any shareholder or category of shareholder to hold more than 100% of a company's outstanding shares. Therefore, when you see investment information websites ...
  28. Investing

    Is there a limit to how many stocks and/or bonds an interested ...

    Assuming the question primarily relates to the issuers of stocks and bonds, the simple answer is no. There are no regulatory limitations for investors regarding the dollar amount, number of securities, ...
  29. Retirement

    How do I calculate my gains and/or losses when I sell a ...

    To begin, you need to know your cost basis, or the price you paid for the stock. If you did not record this information, you should have an order execution confirmation and/or an account statement that ...
  30. Investing

    Why do longer term CDs pay a higher rate than the short-term ...

    To address this question, let's employ the concept of distance. In the city, a short taxi ride from your hotel to a convention center might cost about $5.00. However, when you depart from your hotel for ...
  31. Investing

    What does it mean when my broker says that shares are for ...

    An auction market is one in which stock buyers enter competitive bids and stock sellers enter competitive offers at the same time. If this sounds like buying and selling stock on a stock exchange, you're ...
  32. Investing

    I would like to invest in a dividend-paying stock. How can ...

    There are several accessible sources to help investors identify dividend-paying stocks. Here are a few we can recommend: Generally, your local newspaper will only provide an abbreviated quote in its listing ...
  33. Retirement

    When my mutual fund declares an income distribution, the ...

    An income distribution from a mutual fund to its shareholders can take two forms: A shareholder can elect to be paid directly, which puts the money in his or her pocket The shareholder can elect to buy ...
  34. Investing

    Are mutual fund performance numbers reported net of fees ...

    The answer depends on how you define "operating expenses."Let's look at a cinematic metaphor to clear up this apparent ambiguity. A mutual fund's cost is similar to the cost of going to your local movie ...
  35. Markets

    Profitability Indicator Ratios

    Learn about profit margin analysis, effective tax rate, return on assets, return on equity and return on capital employed.
  36. Mutual Funds & ETFs

    Scoring Fund Investment Quality

    Learn some background on mutual funds and what factors can be used to assess their investment quality.
  37. Retirement

    Sources Of Evaluative Fund Data

    Eight key items determine the investment quality of a mutual fund. Learn where to find them.
  38. Mutual Funds & ETFs

    A Fund's Investment Objective

    Learn to evaluate a fund's investment objective, or "style".
  39. Mutual Funds & ETFs

    Measuring a Fund's Risk and Return

    Learn the importance of the risk-return relationship in selecting a mutual fund.
  40. Mutual Funds & ETFs

    Fund Size and Performance

    Bigger is not necessarily better when it comes to asset size in a mutual fund. Find out why.
  41. Options & Futures

    Fund Management Issues

    The quality of management is a key component of a fund's success.
  42. Options & Futures

    Fund Costs and Expenses

    How much a fund charges for its services is the most important indicator of how well it will perform.
  43. Forex Education

    Fund Performance Metrics

    With mutual funds, it is crucial to look at all components of investment quality and not performance alone.
  44. Forex Education

    Analytical Commentary On A Fund

    Independent fund investment research is the key to finding investment quality in a mutual fund.
  45. Mutual Funds & ETFs

    Mutual Fund Investment Quality: Conclusion

    Check in here for an overview of mutual fund investment quality and how to find it.
  46. Entrepreneurship

    The Greatest Investors

    Read about the achievements of those who have mastered the art of investing.