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How do I use the debt ratio to decide when to invest in a company?
Understand the calculation and interpretation of the debt ratio and how this metric is used by investors to analyze a company's ... 
What is the difference between a Sharpe ratio and a Sortino ratio
Understand the differences between the Sharpe ratio and the Sortino ratio, two riskadjusted return on investment calculations, ... 
How do you the calculate Sharpe ratio in Excel?
Learn how to use Microsoft Excel to calculate the Sharpe ratio, an investing tool useful for assessing the relationship between ... 
What is the difference between a sharpe ratio and an information ratio?
Understand the meaning of the Sharpe ratio and the information ratio, and understand how they differ as tools for evaluating ... 
What is the difference between gross profit margin and markup?
Understand the distinction between gross profit margin and markup, and learn how each of these measures of profitability ... 
How are trust fund earnings taxed?
Trust fund earnings that are distributed are paid by the beneficiary. The trust pays taxes on retained earnings and principal ... 
What is the difference between gross profit margin and contribution margin?
Learn the difference between gross profit margin, an overall profitability metric analysts use, and contribution margin, ... 
Is book value a better metric for company worth than the PE ratio?
Determine the best situations in which to utilize book value, P/E ratio and other metrics to determine the true worth of ... 
What is the difference between book value and salvage value
Discover the difference between two valuations, the book value and the salvage value, and the respective purpose of each ... 
What is a good Sharpe ratio?
Understand how the Sharpe ratio is calculated, and its significance and use for investors in evaluating the performance of ... 
What is the difference between book value and carrying value
Dig deeper into the definitions of carrying value and book value, and learn to differentiate between their various financial ... 
What is the difference between gross profit margin and operating profit margin?
Understand the difference between gross profit margin and operating profit margin, two measures of corporate profitability ... 
Harness Elliot Wave principles To Tap Market Trends
We can apply three easily understood Elliott Wave principles to a popular breakout strategy and watch how they improve market ... 
How does Compound Interest Work?
A quick way to understand the impact of compound interest is to ask yourself if you’d rather receive $100,000 a day for a ... 
How Technology Has Revolutionized Asset Management
Technology has had a dramatic impact on the asset management industry over the past decade, from more sophisticated strategies ... 
Do You Know How To Beat Your Broker?
Want more returns? Give less of it to your broker! Keep your costs down, starting with broker costs. 
Is alpha the best risk measure?
Read about some of the strengths and weaknesses of alpha, a popular riskadjusted performance indicator based on modern portfolio ... 
Are there leveraged ETFs that track the utility sector?
Discover leveraged ETFs tracking the utilities sector, and learn the advantages and disadvantages they present to investors. 
What is the difference between a current account deficit and a trade deficit?
Learn the meanings of the macroeconomic terms current account deficit and trade deficit, and understand the differences between ... 
What are the differences between patterns and trends?
Learn the difference between a pattern and a trend. Explore how technical analysts use patterns and trends to identify trading ... 
How do you use DCF for real estate valuation?
Learn how discounted cash flow analysis is used for real estate valuation and the various factors that go into calculating ... 
Understanding Delta
A delta is a ratio, sometimes referred to as a hedge ratio. It compares the change in price of an asset, usually a marketable ... 
What's the Bottom Line?
The bottom line refers to the last line on a company’s income statement. This line shows net profit after all expenses, depreciation ... 
Trade Weekly & Up Your Reward Potential
Weekly patterns sidestep the HFT maelstrom by aligning trade entries and exits with the edges of longerterm trends. 
How are pennant patterns interpret by analysts and traders?
Understand the basics of the pennant pattern, how it predicts trend continuation, and how analysts and traders identify and ... 
How does one amortize intangible assets?
Understand what distinguishes intangible assets and how companies are required to amortize their value over time to recover ... 
What are the most common Bullish patterns used by traders?
Learn about some of the most commonly recognized bullish candlestick chart patterns that traders use to identify market turning ... 
What are the most common Bearish patterns used by traders?
Discover some of the commonly used bearish chart patterns that traders identify as potential market turning points to the ... 
How do I build a profitable strategy when spotting a Pennant pattern?
Understand the basics of creating a profitable trade strategy based on the pennant chart pattern, including optimal entry ... 
Trading Against the Grid and Away from the Herd
The best trade could be in the opposite direction when a classic price pattern doesn’t behave according to perfect rules. ... 
How To Use Technical Indicators To Master Financial Spread Betting
As a popular tool of investing in the United Kingdom, spread betting encompasses the buying or selling of an underlying asset ... 
What are the main differences between a PHIEllipse and a Fibonacci Retracement?
Discover the unique technical indicator known as the PHIellipse and learn how it differs as a trading tool from Fibonacci ... 
How effective is creating trade entries after spotting a pennant pattern?
Learn the basics of the pennant pattern and how it is used to create an effective trade strategy, including which factors ... 
Why is the Positive Volume Index (PVI) important for traders and analysts?
Take a closer look at the positive volume index, which is a technical price volume indicator used to identify possible bear ... 
What stock factors should you consider when a company makes a CEO change?
Learn about factors affecting the price of stock following a change in CEO. Explore why a change in CEO may be positive or ... 
How Financial Advisors Can Help GunShy Investors
How can financial advisors help investors who are still gunshy from the losses their equity holdings suffered during the ... 
What due diligence steps should an investor undertake before each investment?
Learn about the steps to completing vigorous due diligence when selecting an investment, including ownership by management, ... 
Why is due diligence important before a company acquisition?
Learn about due diligence and company officials' fiduciary duty. Explore the illfated acquisition of Countrywide Financial ... 
What are historic cases of companies failing to do their due diligence?
Learn about the America OnlineTime Warner merger. Explore how America Online's stock was not properly valued due to poor ... 
What are the fundamental differences between a pennant pattern and a flag pattern?
Understand the basics of both the flag and pennant continuation patterns, their similarities and differences, and how each ... 
The Right Trading Position For A Good Night's Rest
The last hour of the trading day is the perfect time to ask these questions about your overnight exposure. 
Fibonacci: Using Math To Make Right Market Moves
Use these two original Fibonacci techniques to pinpoint the patterns in stock movements, and the most reliable entry and ... 
Ready For 2015? Eye 2014's TopPerforming ETFs
These active ETFs performed the best in 2014. How? By shorting oil/Russia, and betting big on semiconductors, U.S. Treasuries, ... 
Is The JNK High Yield ETF A Good Bet Right Now?
High yield can be enticing, but investments that appear enticing on the surface need to be investigated further. 
CDs or Bonds: Which Investment is Better For You
When choosing between CDs and bonds, investors who seek to maximize their returns but also want a large measure of safety ... 
Options give a less risky slice of Alibaba's pie.
US investors can use options as a way to benefit from the profitability of Chineseowned Alibaba while minimizing the downside ... 
Reflecing On Financial And Investing Lessons
Each year I reflect on the lessons learned about missed opportunities, highlight successful practices, and strive to be a ... 
Hot To Build An Investment Portfolio For Retirees?
Investors managing their money through retirement often have different needs than during their growth and accumulation years. 
Making Sense Of The Dow Reaching Record Levels
When gauging the Dow's shifts in order to assess the U.S. economy and make investment decisions, one must know what the Dow ... 
What are the main differences between a Doji and a Spinning Top pattern?
Identify the differences between doji candles and spinning tops on a candlestick chart, and learn how traders look at each ... 
Why is the Exponential Moving Average (EMA) important for traders and analysts?
Discover why chartists and technical analysts might use an exponential moving average (EMA) instead of a simple moving average ... 
What is the difference between gross margin and gross profit?
Understand the difference in definitions between gross margin and gross profit, and learn what each represents as a metric ... 
What is the difference between operating income and revenue?
Understand the definitions of revenue and operating income, how they are calculated and interpreted, and how operating income ... 
When do companies publish P&L statements?
Understand what a company's P&L statement represents, and find out when companies traditionally publish these statements. 
What telecommunication stocks pay the highest dividends?
Learn about the yields offered by five of the highest dividend paying companies within the telecommunications market sector. 
How effective are Dojis in telling a change in direction of overall trends?
Profit from knowing the correct way to trade the doji candlestick. Learn how to spot the best trading opportunities and avoid ... 
What are the main differences between a Doji and a hammer pattern?
Identify the differences between doji candles and hammers on a candlestick chart, and learn how traders look at each for ... 
What are the most common periods used in creating Moving Average (MA) lines?
Learn the most commonly selected periods used by traders and market analysts in creating moving averages to overlay as technical ... 
What is the difference between market capitalization and enterprise value?
Understand the basics of market capitalization and enterprise value, how they measure company value and how they differ in ... 
What is the difference between operating income and EBITDA?
Read about the major differences between earnings before interest, taxes, depreciation and amortization (EBITDA) and operating ... 
Are there publicly traded hedge funds?
See why a privately arranged hedge fund may decide to take its fund public, and how the investing public at large can gain ... 
What is the difference between operating income and operating profit?
Find out why operating margin and operating income can be treated synonymously with EBIT, but how they all differ from operating ... 
What are the best technical indicators to complement the Moving Average (MA)?
Learn about some of the common confirmation tools and techniques that traders and analysts use in conjunction with moving ... 
What is the difference between operating income and net income?
Understand the difference between operating income and net income, including the calculations and interpretations of each ... 
What is the difference between operating income and gross profit?
Learn more about the difference between operating income and gross profit, two accounting figures that appear on a company's ... 
What is the difference between market capitalization and revenue?
Understand the definitions of market capitalization and revenue, how each is calculated and how each reflects the value of ... 
Is a REIT a type of ETF?
Learn the differences between real estate investment trusts, or REITs, and exchangetraded funds, or ETFs, to see how the ... 
What are the main disadvantages of using Fibonacci Retracements for trading strategies?
Learn about the disadvantages inherent to the Fibonacci retracement, an indicator built on the Fibonacci sequence used in ... 
What types of fees are incurred by purchasing ETFs?
Understand all the various costs, both explicit and hidden, involved in trading exchangetraded funds, or ETFs, and see how ... 
How do you use the pricetobook ratio to evaluate a company's value?
Understand how investors and market analysts use the pricetobook ratio to evaluate the worth of a company and why this ... 
Is net income the same as profit?
Understand the difference between profit and net income, including why corporate accountants calculate profit at different ... 
What is a country ETF?
Learn about the operational basics of exchangetraded funds (ETFs) and the foreign investment opportunities and advantages ... 
What is spread hedging?
Learn about one of the most common riskmanagement strategies options traders use, called spread hedging, to limit exposure ... 
What are the main advantages of using the Exponential Moving Average (EMA)?
Learn the important potential advantages of using an exponential moving average when trading, instead of a simple moving ... 
Are utility stocks bought for income or growth?
Learn why the shares of governmentprotected utility companies have proven to be among the most consistent income stocks ... 
What are the best metrics to evaluate a telecommunication company?
Use fundamental analysis and three specific metrics to evaluate telecommunications companies to find the best one for your ... 
What is the Moving Average Convergence Divergence (MACD) formula and how is it calculated?
Learn the formula for the moving average convergence divergence momentum indicator and find out how to calculate the MACD ... 
What other sectors besides utilities are known as defensive?
See why certain sectors, other than utilities, are considered defensive and therefore more resistant to the downturns of ... 
Why is the Moving Average Convergence Divergence (MACD) important for traders and ...
Take a look inside one of the most popular and widely trusted technical indicators, the moving average convergence divergence, ... 
What is a common strategy traders implement when using the Moving Average Convergence ...
Learn some common trading strategies that traders employ using the moving average convergence divergence (MACD) technical ... 
Money Lessons From Disney's Scrooge McDuck
Forbes magazine ranked Scrooge McDuck as the richest fictional character in the world in 2013 with a net worth of $65.4 billion. ... 
With an exdividend, why does the dividend go to the seller rather than the buyer?
Find out why exdividend payments are sent to the seller of a stock rather than the purchaser and how exdividends can create ... 
What are the best technical indicators to complement Fibonacci Retracements?
See what kind of technical indicators and oscillators work best in conjunction with Fibonacci retracements to confirm stock ... 
What does a hedge fund do?
Read how hedge funds differ from other investment vehicles and how their investment strategies make them unique and potentially ... 
What is the difference between dividends and capital gains?
Read about some of the differences between dividends and capital gains, the two primary ways of accumulating wealth through ... 
How do I use Fibonacci Retracements to create a forex trading strategy?
Learn how to use Fibonacci retracements as part of an overall forex trading strategy. Fibonacci levels are carefully watched ... 
What is a common strategy traders implement when using Fibonacci Retracements?
Learn some of the most common trading strategies that traders use in relation to the key support and resistance Fibonacci ... 
What is the difference between a debenture and a bond?
Learn how to differentiate between debentures and bonds, two types of debt securities that can be issued by a government ... 
Why is the Fibonacci Retracement important for traders and analysts?
Find out why traders and analysts in financial markets use Fibonacci retracement to help identify support and resistance ... 
What are the main disadvantages of using Moving Averages (MA)?
Learn about some of the inherent limitations and possible misapplications of moving average analysis within technical stock ... 
What is the difference between revenue and cost in gross margin?
Discover the differences between revenue and cost in gross margin, along with an explanation of various measures of profitability. 
What is the difference between gross margin and contribution margin?
Understand the difference between the gross margin and the contribution margin, including how they differ in calculation ... 
How do I use Moving Average (MA) to create a forex trading strategy?
Learn a simple forex trading that uses multiple moving averages and is designed to create lowrisk, highreward trading opportunities. 
What are the main advantages of using Moving Averages (MA)?
See why moving averages have proven to be advantageous for traders and analysts and useful when applied to price charts and ... 
What is a common strategy traders implement when using the Moving Average (MA)?
Learn about a basic moving average strategy predicated on the relationship between a security's price action and its moving ... 
What is the difference between gross margin and operating margin?
Understand the difference between gross margin and operating margin in relation to evaluating a company's overall profitability ... 
Why is the Moving Average (MA) important for traders and analysts?
See why the statistical concept of moving averages plays a central role for traders and chartists who rely on technical analysis ... 
Why is the Haurlan Index important for traders and analysts?
Read how traders and analysts use the Haurlan Index to determine overbought and oversold conditions on major market indexes ... 
What is the difference between market capitalization and shares outstanding?
Understand the relationship between shares outstanding and market capitalization and how market cap is interpreted to establish ... 
How do I use the Haurlan Index to create a forex trading strategy?
See how the three components of the Haurlan index can be used by forex traders to assess the strength of buyers and sellers ...
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Frequently Asked Questions

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 ... 
What assumptions are made when conducting a ttest?
Learn what a ttest is, and discover the five standard assumptions that are made regarding the validity of sampling and data ... 
What is the difference between calledup share capital and paidup share capital?
Find out about the difference between calledup and paidup share capital, including an explanation of the four categories ... 
How do dividend distributions affect additional paid in capital?
Find out how the issuance of dividends can affect the additional paidin capital subaccount of a company's balance sheet; ...
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