Investing - All Content

  1. What is a common strategy traders implement when using the Uptick Volume?

    Learn how traders use uptick and downtick volume with VWAP cross to identify trends and momentum and identify points of big ...
  2. What are the best technical indicators to complement the Uptick Volume?

    See how uptick volume can be used to help confirm price trends from nearly every trend-following indicator, especially when ...
  3. What are examples of popular companies in the Internet sector?

    Discover which Internet companies are the most popular among investors in this high potential growth area of the technology ...
  4. What does days sales of inventory (DSI) represent as a ratio?

    Discover what the days sales of inventory (DSI) ratio represents for traders or market analysts and how this ratio is used ...
  5. How can I hedge my portfolio to protect from a decline in the Internet sector?

    Learn how investors hedge against declines in the Internet sector by diversifying their portfolios with non-cyclical and ...
  6. What did Warren Buffett mean when he said, “Diversification is protection against ...

    Learn what Warren Buffett meant when he stated that diversification is for ignorant investors and does not help those who ...
  7. How do you find a company's days sales of inventory (DSI)?

    Discover the formula to calculate days sales of inventory and how it is helpful to market analysts and investors, but it ...
  8. What are the best technical indicators to complement the Upside/Downside Ratio?

    Take a look at some common technical indicators that might be used to complement the upside/downside ratio, a broad-market ...
  9. What is industry etiquette for number of days payable outstanding (DPO)?

    Read about what constitutes an allowable threshold for days payable outstanding, and why creditors and debtors often have ...
  10. What are red flags in a company's days sales of inventory?

    Consider what red flags an investor or lender might be able to determine about a company when examining its days sales of ...
  11. What is a common strategy traders implement when using the Volume Price Trend Indicator ...

    Learn how a trader can use the volume price trend indicator as a strategy to identify changes in trends and how it can be ...
  12. What is a common strategy traders implement when using the Volatility Ratio?

    Learn how to create a strategy using the volatility ratio with uptick volume and downtick volume to signal reversal of trend ...
  13. What is the Volatility Ratio formula and how is it calculated?

    Understand what the volatility ratio indicator is, how it is calculated and the way this technical indicator is used by traders ...
  14. What’s The Smartest Way To Play Tobacco Stocks?

    While the United States economy continues to grow, the U.S. tobacco industry keeps shrinking.
  15. Could PotashCorp Finally Spring Higher?

    In 2013 shares of PotashCorp , one of the major global producers of potash-based fertilizer, tumbled in response on fears ...
  16. What's the difference between accrued expenses and accounts payable?

    Learn how companies use accrued expenses and accounts payable on their balance sheet and the difference between the two liabilities.
  17. How can a socially responsible investor gain exposure to the metals and mining sector?

    Read about social responsibility and the metals and mining sector, and how environmentally and culturally conscious investors ...
  18. What percentage of asset management firms are privately held and not publicly traded?

    Explore asset management firms, a major part of the financial services sector, and learn about the respective markets served ...
  19. How do fund managers use correlation to create portfolio diversity?

    Read about how contemporary investment fund managers use the concept of correlation to add diversification among assets in ...
  20. How do the investment risks differ between options and futures?

    Learn what differences exist between futures and options contracts and how each can be used to hedge against investment risk ...
  21. How can value investors benefit from investing in the metals and mining sector?

    Find out how to benefit when investing in precious metals sector, and understand how gold can help hedge against currency, ...
  22. How risky are futures?

    Understand how futures contracts are trading and learn what aspect of futures trading poses potentially greater risk than ...
  23. What is the history of futures?

    Explore the history of futures trading and the origin of the major commodity futures trading exchanges in England and the ...
  24. How much of a diversified portfolio should be exposed to the metals and mining sector?

    Learn what criteria investors use to determine what percentage of their diversified portfolios should be exposed to the metals ...
  25. What is the difference between accrued expense and accrued interest?

    Learn the difference between accrued expense and accrued interest, and find out how to calculate accrued interest on a short-term ...
  26. What is the advantage of calculating accrued expenses over prepaid expenses?

    Learn about accrued expenses and prepaid expenses, the difference between accrued and prepaid, and advantages of accrued ...
  27. How can I invest in credit card companies?

    Learn about the different ways to invest in credit card company stock as well as the advantages and drawbacks of each investment ...
  28. How Rate Hikes Will Affect Your Investments?

    An interest rate hike by the Fed, which will happen either during their June or September meeting, could impact your fixed ...
  29. How do you calculate net current assets in Excel?

    Learn how to calculate net current assets, or working capital, in Microsoft Excel and how to evaluate the financial health ...
  30. How do traders use debit spreads to protect against loss?

    Review an example of how a trader might use a debit spread to limit the maximum loss on an options transaction, limiting ...
  31. What is the Austrian Theory of the Business Cycle?

    Read about the Austrian business cycle theory, which claims that government interventions in the credit market lead to asset ...
  32. What are some factors that affect a company's days payable outstanding (DPO)?

    Discover what factors affect a company's days payable outstanding (DPO) and how a company and its vendors interpret the result ...
  33. Why is overhead cost allocation sometimes manipulated on an income statement?

    Learn why companies sometimes manipulate overhead costs to boost the appearance of overall profitability, and other reasons ...
  34. How do interest rates coordinate savings and investment in the economy?

    See how the rate of interest in an economy helps coordinate between savings, lending and investment. See how this changes ...
  35. What is a common number for days payable outstanding? (DPO)?

    Understand the accounting term, days payable outstanding (DPO), and learn what the most common time period is for a company ...
  36. How can I profit from a fall in the metals and mining sector?

    Learn the methods that shrewd investors use to profit from a fall in the metals and mining sector. These methods include ...
  37. When are current assets converted to liquid assets?

    Understand the meaning of the accounting term ''current assets,'' and learn when and how current assets are converted into ...
  38. What is the difference between gross profit, operating profit and net income?

    Learn about the relationship between gross profit, operating profit and net income and how these financial concepts are calculated.
  39. How is an economy formed and why does it grow?

    Find out how an economy forms and why it grows, including the role that financial markets play and how productivity increases ...
  40. Why A High-Yield Dividend May Not Be Sustainable?

    Dividend stocks are the foundation from which great retirement portfolios are built, and they serve multiple purposes for ...
  41. Why You Shouldn’t Sell Baidu Stocks?

    Baidu has seen its stock soar more than 130%. But after such a significant run-up, is it time for investors to cash out and ...
  42. What role do SPVs / SPEs play in public-private partnerships?

    Find out why governments and private actors prefer to use special purpose vehicles, or SPVs, when they undertake public-private ...
  43. Why is PPP (purchasing power parity) controversial?

    Find out why economists disagree about the conceptual validity of the theory of purchasing power parity (PPP) to describe ...
  44. What emerging markets are best suited for investing in the oil & gas drilling sector?

    Read about which emerging markets or potential emerging markets are well-suited for investing in the oil and natural gas ...
  45. Are there leveraged ETFs that track the financial services sector?

    Discover some of the leading companies offering leveraged ETFs today and learn specifically what leveraged ETFs are available ...
  46. What percentage of a diversified portfolio should be invested in the financial services ...

    Learn about how investors use their assessed risk tolerance to determine what percentage of their portfolios should be invested ...
  47. How do you find the level of EBIT where EPS doesn't change?

    Learn about the relationship between earnings before interest and taxes (EBIT and earnings per share (EPS) and how to find ...
  48. What is the formula for calculating weighted average cost of capital (WACC) in Excel?

    Learn about the weighted average cost of capital (WACC) formula and how it is used to estimate the average cost of raising ...
  49. How do I determine where to set my stop loss?

    Read about some theories on stop-loss placement and how traders use stop-loss orders to hedge against losses and capture ...
  50. Which developed markets have the greatest exposure to financial services?

    Understand the position of firms in the financial service sectors located in the major developed nations in relation to challenges ...
  51. What Has Seadrill Really Excited?

    Seadrill was caught off guard by the drop in the price of oil, that has forced it to make tough decisions, like cutting its ...
  52. How To Manage Portfolio Risk

    Follow these tips to successfully manage portfolio risk.
  53. What's the difference between an index fund and an actively managed fund?

    Learn the difference between actively-managed funds and index funds. Explore the risks and benefits associated with each ...
  54. What's the difference between the general ledger and a general journal?

    Keeping records for most organizations require a double-entry bookkeeping system, which revolves around transactions in the ...
  55. What's Fair Value?

    Fair value has three different meanings depending on the context.
  56. The Dodd-Frank Wall Street Reform Act

    The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly called Dodd-Frank, was passed in 2010. The goal of ...
  57. Chesapeake Energy Sees History Repeating Itself

    Chesapeake was on the wrong side of natural gas when its price plunged in 2012, and it appears to be repeating itself after ...
  58. Is Now the Time for Junk Bonds?

    A bet on high-yield bonds is a bet that the global economy will continue to improve...but not too much.
  59. What is a Corporation?

    A corporation is an organization—usually a large business—with specific characteristics.
  60. Can American Capital Agency Maintain Its Dividend?

    Dividend investors know that real estate investment trusts with REITs that invest in mortgage-backed securities produce double-digit ...
  61. What is Present Value?

    Present value tells us how much a future sum of money is worth today, given a specified rate of return. This is an important ...
  62. What is Securitization?

    Securitization is the process of converting an asset, or group of assets, into a marketable security. Often times, the securitized ...
  63. Pimco and Vanguard: A Tale of Two Fund Managers

    A look at the similarities and differences of asset management giants Pimco and Vanguard.
  64. What measures should a company take if its times interest earned ratio is too high?

    Find out why and when a company's times interest earned ratio can be considered too high and what measures can be taken to ...
  65. When and why are technical indicators useful?

    Discover what technical indicators are, when they are useful and how their specific design limits their meaningfulness to ...
  66. Short Russia with Direxion's Daily Russia Bear 3X

    Looking to short Russia? Check out the Direxion Daily Russia Bear 3X ETF.
  67. An Overview of Janus Capital Management

    A look at Janus Capital and the funds it manages.
  68. Investing In Social Media Startups? Read This First

    Several new social media startups are attracting large amounts of funding, based on their prospects of retaining a large ...
  69. Enter Trades Ahead Of The Emotional Crowd

    Traders profit in highly competitive markets by shifting their strategies backward or forward, entering positions ahead of ...
  70. Who exactly needs to be paying attention to the time interest earned ratio of a company?

    See why creditors pay special attention to a firm's times interest earned ratio and how their interpretation impacts management ...
  71. What does a high times interest earned ratio signify with regard to a company's future?

    Learn how the times interest earned ratio affects the perception of solvency of a company, and what a high ratio can mean ...
  72. How do traders and analyst create profitable Swing Trading strategies in forex?

    Learn how to create a profitable swing trading strategy in the forex market using price channels on bullish, bearish and ...
  73. How can I calculate the times interest earned in Excel?

    Read about a simple way to calculate times interest expense by using Microsoft Excel. TIE is a common ratio used to evaluate ...
  74. How do I implement a forex strategy when spotting a Stick Sandwich Pattern?

    Learn about the stick sandwich and how to use this reversal pattern in conjunction with other technical indicators to create ...
  75. How can I trade in foreign futures?

    Discover how an American investor can get started in trading foreign futures, including which regulations and restrictions ...
  76. What measures should a company take if its total debt to total assets ratio is too ...

    Learn how the total debt to total assets ratio is analyzed by investors and lenders, and how a high ratio can be remedied ...
  77. Five Janus Mutual Funds With High Alpha

    A look at some of the alpha-generating equity funds from Janus.
  78. Understanding the Capital Adequacy Ratio

    The capital adequacy ratio (CAR) is an international standard that measures a bank’s risk of insolvency from excessive losses. ...
  79. What does Large Cap mean?

    The “cap” in large cap refers to a company’s capitalization as determined by the total market value of its publicly traded ...
  80. What are Financial Statements?

    Financial statements are a picture of a company’s financial health for a given period of time at a given point in time. The ...
  81. How Is Main Street Capital Growing?

    Dividend investors are always on the lookout for high-yielding investments, and one niche in the investment world has paid ...
  82. What Would Be Of BreitBurn Energy This Summer?

    This Spring, BreitBurn Energy Partners' banks will take a closer look at its credit facility and redetermine its borrowing ...
  83. Is Union Pacific Still A Good Dividend Stock?

    It is impossible for a competitor to secure enough right-of-way real estate and cost advantages to compete with U.S. Class ...
  84. Is It Time To Shun Altria Group?

    If you're in the market for a high-yielding dividend stock with an unmatched history of shareholder returns, then you can't ...
  85. How are accounts payable listed on a company's balance sheet?

    Find out how accounts payable is listed on a company's balance sheet, why it is considered a current liability, and how it ...
  86. Is there a limit to the number of SPVs / SPEs a company can create?

    Find out how many special purpose entities a corporation can create, and why legislating these affiliate companies can be ...
  87. Can bond traders trade on interest rate swaps?

    Read about interest rate swaps and why these transactions are performed by institutional actors in the bond market, not individual ...
  88. Are small cap companies less safe investments than large cap companies?

    Compare the safety of investing in small- and large-cap companies. Find out how each performs in different situations and ...
  89. Why do businesses calculate accrued expenses?

    Find out why businesses calculate accrued expenses, how they are applied and what circumstances give rise to accrual entries ...
  90. What is the most typical holding in an SPV?

    Learn why property-based investments are the most common kind of holding within a Special Purpose Vehicle, or SPV, and how ...
  91. What is the Difference Between Institutional Traders and Retail Traders?

    The differences between retail and institutional traders lie in the size of the trade, level of sophistication, and the ...
  92. The Motley Fool vs. TheStreet: Which Is Which?

    Motley Fool and TheStreet.com provide financial news and other investment services, but each has unique traits that will ...
  93. How is correlation used differently in finance and economics?

    Take a look at the similarities and differences between how statistical correlation is applied in economics as opposed to ...
  94. How is correlation used to measure volatility?

    See how the correlation between an asset and its benchmark index can be used as a proxy to determine the relative volatility ...
  95. How do I use a Turtle Channel to create a forex trading strategy?

    Learn two simple forex trading strategies, one trend trading strategy and one swing trading strategy, that can be implemented ...
  96. Are accounts payable an expense?

    Learn about how to differentiate between liability accounts and expense accounts, and see why accounts payable is considered ...
  97. How is correlation used in modern portfolio theory?

    Discover how modern portfolio theory and the efficient frontier use correlation between investment assets to predict an optimal ...
  98. Are accounts payable an asset?

    Find out why the general ledger accounts payable is considered to be a current liability, not a current asset, and how it ...
  99. Are accounts payable a liability?

    Take an in-depth look at accounts payable, or trade payable, an important current liability account listed on a company's ...
  100. How do I implement a forex strategy when spotting a Tri-Star Pattern?

    Learn about the tri-star pattern and how to use this reversal signal in conjunction with other technical indicators to create ...
Frequently Asked Questions
  1. What is the relationship between the current yield and risk?

    Discover the relationship between a bond’s current yield and risk, and how investors can use it to benefit their overall ...
  2. What assumptions are made when conducting a t-test?

    Learn what a t-test is, and discover the five standard assumptions that are made regarding the validity of sampling and data ...
  3. What is the difference between called-up share capital and paid-up share capital?

    Find out about the difference between called-up and paid-up share capital, including an explanation of the four categories ...
  4. How do dividend distributions affect additional paid in capital?

    Find out how the issuance of dividends can affect the additional paid-in capital subaccount of a company's balance sheet; ...
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