Investing - All Content

  1. What are the tax implications for both the company and investors in a divestiture ...

    Learn the tax implications for a company and its investors in divestiture events, such as spinoffs, equity carve-outs, and ...
  2. Why Volatility Is Your Friend

    Instead of looking at falling share prices as something negative, investors should view it as an opportunity to acquire ownership ...
  3. Does it Make Sense to Have an MLP in an IRA?

    Here's why MLPs should — and shouldn't — be considered for an IRA.
  4. Is Now the Time for Emerging Market Bonds?

    Higher yields and the potential for price appreciation await investors who take the plunge with emerging market bonds. Here's ...
  5. How Retirees Should Approach Interest Rate Hikes

    Here's what retirees can do if interest rates rise.
  6. How do traders use out-of-the-money options to hedge?

    Learn a couple of simple option trading strategies that traders can use to hedge an existing market position and protect ...
  7. What is the difference between payment netting and close-out netting?

    Learn about the risk reduction practice of netting, and specifically the differences between payment netting and close-out ...
  8. How have portfolios from within the efficient frontier performed historically?

    Explore how the efficient frontier is used in selecting investment portfolios. Find out how risks and returns are used to ...
  9. For what investments is dollar cost averaging most effective?

    Understand why dollar cost averaging is best for volatile asset classes and less than ideal for more stable types of asset ...
  10. What is the minimum capital adequacy ratio that must be attained under Basel III?

    Find out more about the capital adequacy ratio, or CAR, and the minimum capital adequacy ratio that banks must attain under ...
  11. How can the price of a stock change on the ex-dividend date?

    Find out more about dividend-paying stocks and how the prices of dividend-paying stocks are affected on the ex-dividend date, ...
  12. MLPs: How They Are Taxed

    The advantages of MLPs outweigh the disadvantages, especially if you play your cards right.
  13. Pros and Cons of Master Limited Partnerships

    Want steady income? Consider looking into MLPs.
  14. Why Advisors Should Seek Out Wealthy Workers

    The majority of "high-net-workers" thinks an advisor would add value, but few use them. Financial advisors should see this ...
  15. What measures could the U.S. Government take to prevent another crisis similar to ...

    Discover what measures the U.S. government could take to prevent another crisis similar to the S&L crisis. The S&L crisis ...
  16. How is portfolio variance reduced in Modern Portfolio Theory?

    Learn about modern portfolio theory, specifically what it asserts about asset allocation and managing portfolio risk through ...
  17. Why should investors be wary of off balance sheet financing activities?

    Find out why investors should be wary of off-balance-sheet financing, including how businesses use this accounting technique ...
  18. How was the American Dream impacted by the housing market collapse in 2008?

    Learn how the American Dream was impacted by the housing collapse in 2008. Due to the housing collapse, millions ended up ...
  19. What are some examples of smart beta ETFs that use passive and active management?

    Learn about smart beta investment strategies and discover examples of smart beta exchange-traded funds that use both passive ...
  20. How are net tangible assets calculated?

    Learn about net tangible assets, what it measures and how to calculate a company net tangible assets using examples.
  21. What industries typically use delta hedging techniques?

    Learn what industries use delta hedging techniques for options trading, and understand how delta neutral trading strategies ...
  22. 4 Ways You Can Invest In Gold Without Holding It

    Owning gold can be a store of value and a hedge against unexpected inflation. Holding physical gold, however, can be cumbersome ...
  23. What are the pros and cons of downround financing?

    Read about the pros and cons of down round financing for a company that has seen its valuation decrease, and see how it impacts ...
  24. What are typical forms of capital assets within a manufacturing company?

    Learn the typical forms of capital assets for a manufacturing company, such as land, buildings, equipment, goodwill and trademarks.
  25. How do I determine a company's floating stock?

    Find out more about floating stock, outstanding shares and restricted stock, and learn how to calculate the amount of a company's ...
  26. What major events and policy decisions led to the savings and loan crisis (S&L crisis)?

    Learn about the major events and policy decisions that led to the savings and loan crisis. The catalyst for the crisis was ...
  27. How do I use the rule of 72 to estimate compounding periods?

    Find out how and why you can use the rule of 72 to approximate the amount of time it will take for an investment to double ...
  28. Guts, Grit And Grind: What It Takes To Be A Value Investor

    Guts, Grit And Grind: What It Take To Be A Value Investor.
  29. Why Zynga Might Be the Most Undervalued Stock of 2015

    Learn why Zynga, despite having fallen off most investors' radar, might be the most undervalued stock for 2015 and a winning ...
  30. Why do companies often treat events such as the purchase of an asset or construction ...

    Understand the capitalized costs of fixed assets and learn how they are reflected on a company's balance sheet and income ...
  31. What are the pros and cons of holding a non-controlling interest in a company?

    Read about the advantages and disadvantages of a non-controlling interest in a company, including large corporations and ...
  32. On which financial statement does a company list its raw material costs?

    Discover what items are raw materials, how raw material costs affect businesses, and where these costs are recorded on a ...
  33. How is a short call used in a covered call option strategy?

    Learn how short calls are used in a covered call option strategy, what the risks and rewards of this strategy are, and how ...
  34. What are examples of inherent risk?

    Explore two famous examples of inherent risk with the collapse and ultimate bankruptcy of Lehman Brothers and the downfall ...
  35. What happens when I want to sell my A-shares of a mutual fund?

    Find out what it costs to sell A-shares of a mutual fund and learn what factors influence the overall costs of investing ...
  36. Why is the value of capital stock important to public shareholders?

    Understand what capital stock is and how it's issued and authorized. Learn why the value of capital stock important to public ...
  37. How does Basel III strengthen regulation and improve risk management of the global ...

    Learn about the banking regulations of Basel III, including provisions regarding capital, leverage ratios and liquidity requirements.
  38. What are the major categories of financial risk for a company?

    Examine four major categories of financial risk for a business that represent potential problems that a company may have ...
  39. What are the advantages of portfolio planning with the efficient frontier?

    Learn about modern portfolio theory and the efficient frontier. Understand the advantages of portfolio planning with the ...
  40. How does implied volatility impact the pricing of options?

    Learn about two specific volatility types associated with options and how implied volatility can impact the pricing of options.
  41. How do changes in capital stock illustrate the overall health of a company?

    Understand what capital stock is comprised of. Learn how changes in capital stock illustrate and provide insight into the ...
  42. How is the ex-dividend date for a dividend on a stock determined?

    Review the important dates concerning dividend payments and learn how the ex-dividend date is determined when a company declares ...
  43. On which financial statements does a company report its long-term debt?

    Discover which financial statements are used to report a company’s long-term debt, as well as how a company uses debt to ...
  44. Which is better: dollar cost averaging or value averaging?

    Compare the two investment strategies of dollar cost averaging and value averaging, and learn which one usually generates ...
  45. What is the difference between capital and operating expenses?

    Learn about the types of expenses that a company incurs. Understand the difference between capital and operating expenses, ...
  46. What happens to the price of a premium bond as it approaches maturity?

    Learn how bonds trade in regard to premiums and discounts, and how bond prices shift closer to par value as bonds approach ...
  47. How is a short call used in a naked call writing option strategy?

    Learn how a short call is used in a naked call writing strategy, and understand the high degree of risk associated with this ...
  48. Major League Baseball's Business Model & Strategy

    Major League Baseball is big business. Let's take a look at where the money comes from.
  49. Diversification and Startup Investing

    Startup investments, considered a subset of venture capital, are subject to the same principles of diversification and portfolio ...
  50. 5 Things Investors Can Learn From Shark Tank

    Retail investors can watch "Shark Tank" to learn how the wealthy analyze investment opportunities.
  51. Get Better Mileage Out Of Your Savings At The Pump

    U.S. drivers are spending 90 cents less on a gallon of gas than a year ago, about more than $10 a tank. If that’s you, what ...
  52. Good Economic News The Cynics May Be Missing

    Headline data about the U.S. economy hasn’t been great, but the economy is actually stronger than it’s getting credit for. ...
  53. What’s Driving Markets Today

    While U.S. stocks managed to eke out modest gains last week, it wasn’t without some violent swings along the way.
  54. How Going Green Can Cut Your Taxes

    Investors looking to improve their bottom line via green investing without risk should take advantage of these tax credits. ...
  55. Why Higher Rates Could Be Good News For Consumers

    While rates remain extraordinarily low by historical standards, in the last few months we have witnessed a modest change ...
  56. Knowing When To Hold And When To Sell

    When deciding whether to sell or hold on to a stock, use the "partial sell" strategy as a way to minimize risks and ensure ...
  57. BlackBerry: A Story Of Constant Success & Failure

    BlackBerry's history of success and failure is demonstrated by extreme volatility in its stock price. Investopedia explores ...
  58. 10 Most Influential Chinese Companies

    Chinese companies are becoming influential global players. Investopedia provides a list of most influential companies in ...
  59. What are the key factors that will cause a bond to trade as a premium bond?

    Learn about the primary factor that can cause bonds to trade at a premium, including how national interest rates affect bond ...
  60. What is the difference between shares outstanding and floating stock?

    Learn about shares outstanding, floating stock, how to calculate a company's floating stock and the difference between shares ...
  61. What are the differences between H-shares and A-shares on Chinese and Hong Kong stock ...

    Learn about A-shares and H-shares of publicly listed companies in mainland Chinese and Hong Kong stock exchanges, and the ...
  62. What does the information ratio tell about the design of a mutual fund?

    Understand what the information ratio is and how to calculate it. Learn what the information ratio reveals about the design ...
  63. What are typical forms of long-term debt for a public company?

    Learn typical forms of long-term debt for a public company, such as bonds, term loans, paid-in-kind notes, leases and hybrid ...
  64. What austerity measures can a country implement to curtail government spending?

    Read about the types of austerity measures that governments can take to reduce deficits, increase revenue and lower public ...
  65. Who's The Stronger Stock: Amazon or eBay?

    Learn how revenue, profitability, valuation metrics, active user base and seller ratings measure the success of Amazon and ...
  66. What A Tech Bubble Could Mean For The Economy

    Are technology stocks in a bubble? And if so, what might the consequences be?
  67. Using Bullish Candlestick Patterns To Buy Stocks

    These five popular candlestick chart patterns signal a bullish reversal in downtrend.
  68. Which federal regulatory agencies approved and are now responsible for enforcing ...

    Learn which federal regulatory authorities approved and are jointly responsible for the implementation and enforcement of ...
  69. What does floating stock tell traders about a particular stock?

    Learn about what floating stock tells a trader about a particular stock. One commonality of the biggest winners in stock ...
  70. What does a negative bond yield mean?

    Find out what it means when a bond has a negative yield and what circumstances must arise for the yield to be negative when ...
  71. Which economic factors impact treasury yields?

    Discover the economic factors that impact Treasury yields. Treasury yields are the benchmark yield for the rest of the world, ...
  72. Is gross national income (GNI) or gross domestic product (GDP) a better measure of ...

    Discover why gross national income may be a better metric of an economy than gross domestic product when an economy has substantial ...
  73. What are the differences between downround and upround financing?

    Understand what down rounds and up rounds of financing mean, and learn about the typical progression of a company through ...
  74. How are commodity spot prices different than futures prices?

    Find out more about commodity spot and futures prices, how to calculate a commodity's futures price, and the differences ...
  75. Why is the Nasdaq more volatile than the NYSE?

    Learn about the stocks that are traded on the Nasdaq stock exchange, and discover the Nasdaq's relative volatility level ...
  76. What is the difference between the equity method and the proportional consolidation ...

    Discover the differences between the equity method and the proportional consolidation method of joint venture accounting, ...
  77. Does the Volcker Rule prevent commercial banks from offering shares of hedge funds ...

    Learn about restrictions placed on commercial banks as a result of the Volcker Rule, a part of the Dodd-Frank Wall Street ...
  78. What usually happens to the price of a stock when a tender offer for shares of the ...

    Learn what happens to the price of a stock when a tender offer is made public. Some of the most contentious takeovers have ...
  79. What are some ratios I can use the operating cash flow ratio with?

    Understand the importance of a company's operating cash flow. Learn about some of the financial ratios that use the operating ...
  80. How To Short Amazon Stock

    With the stock reaching all-time highs and the company gambling on several new business lines, many investors may feel it's ...
  81. The Best and Worst Countries to Find a Job

    Which countries have the lowest and highest unemployment rates? The answers might surprise you.
  82. Fund Boards: What They Do and Why You Should Care

    Fund boards oversee management and operations of the fund on behalf of shareholders. Make sure you've got a board that will ...
  83. Are These America's 5 Best CEOs?

    Do great leaders lead to great investment opportunities? Here's a few to consider.
  84. Why is unlevered free cash flow important when reviewing a company's finances?

    Understand why unlevered free cash flow is important when reviewing a company's finances. Learn the importance of comparing ...
  85. What is the importance of calculating tax equivalent bond yield?

    Calculate the tax-equivalent yield of tax-free municipal bonds to compare with taxable bonds. Find out if the tax savings ...
  86. What does a high unlevered free cash flow indicate about a business?

    Learn the difference between levered free cash flow and unlevered free cash flow. Understand what a high unlevered free cash ...
  87. Is it better to buy A-shares or a no-load mutual fund?

    Understand the difference between Class A mutual funds and no-load funds, and learn which option for mutual fund investing ...
  88. What can demographics tell us about present and future consumption trends and economic ...

    Learn what demographics reveals about present and future consumption trends and economic cycles. Demographics is the study ...
  89. How do I use smart beta funds to create a diversified portfolio?

    Learn how smart beta funds may give greater diversification than passively tracking stock indexes and make active management ...
  90. What is the purpose of the Volcker Rule?

    Learn about how the Volcker rule prohibits banks from engaging in certain activities, such as proprietary trading and having ...
  91. How can I invest in tax liens?

    Find out about the steps an investor must take to invest in tax liens, along with the potential benefits of doing so.
  92. How do commodity spot prices indicate future price movements?

    Find out more about commodity spot and futures prices, how to calculate commodity futures prices and how spot prices indicate ...
  93. What external factors can influence EBITDA margins?

    Learn what external factors influence EBITDA margins, such as consumer preferences, laws, inflation or deflation, price movements ...
  94. Do You Need A Private Banker?

    They offer well-heeled clients unparalleled convenience, but could be prone to certain conflicts of interest.
  95. Figuring What You Make On Rental Property (ROI)

    The return on investment can vary greatly, depending on how much of the building you own.
  96. What Is The Value In Value Investing?

    Value investing has its advantages, but it also has significant drawbacks. We look at the pros and cons.
  97. Profitable Long-Term Consolidation Patterns

    Long-term consolidation patterns set up high reward opportunities for patient market players.
  98. The Business Model Of Private Prisons

    How does the business model of private prisons work?
  99. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ...
  100. How is a short call used in a collar option strategy?

    Learn how a short call is used in a collar option strategy, and see how this strategy has a limited risk and a limited return ...
Frequently Asked Questions
  1. What happens to the company stock if a subsidiary gets spun off?

    Learn what happens to a company's stock if a subsidiary gets spun off. Spinoffs are typically bullish catalysts for a company ...
  2. Why would a company use a form of long-term debt to capitalize operations versus issuing equity?

    Learn about the different consequences of using long-term debt versus equity to raise capital for business activity, and ...
  3. Where can I find year-to-date (YTD) returns for benchmarks?

    Discover which financial data providers publish year-to-date benchmark performance. Find out which websites provide YTD price ...
  4. What Book Value Of Equity Per Share (BVPS) ratio indicates a buy signal?

    Find out more about book value of equity per share, what BVPS measures and how to determine what level of BVPS indicates ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!