Fundamentals

MarkToMarket: Tool Or Trouble?
Marktomarket accounting can be a valuable practice, but all bets are off when the market fluctuates wildly. 
What is the difference between return on equity and return on capital?
Return on equity (ROE) and return on capital (ROC) measure very similar concepts, but with a slight difference in the underlying ... 
Municipalities Free Up Cash With Chapter 9
Find out what happens to municipalities when they need money, but have no other option than bankruptcy. 
What is the best method of analysis for forex trading?
Types Of Analysis Used In ForexForex analysis is used by the retail forex day trader to determine whether to buy or sell ... 
The Evolution Of Enterprise Risk Management
This growing sector can tell you a lot about the companies you are investing in. 
What is the weighted average of outstanding shares? How is it calculated?
The amount of shares outstanding in a company will often change due to a company issuing new shares, repurchasing and retiring ... 
The P/E Ratio: A Good MarketTiming Indicator
Check out the returns this newer technical analysis tool would've yielded over the period from 1920 to 2003. 
Why are P/E ratios generally higher during times of low inflation?
Inflation affects equity prices in several ways. Most importantly, investors are willing to pay less for a certain level ... 
Is it possible for a company to have a positive cash flow and a negative net income?
This situation may seem a bit counterintuitive at first, but it is actually quite common and not too difficult to understand. ... 
Where can I find the P/E ratios for the Dow and S&P 500?
When it comes to valuing stocks, the pricetoearnings (P/E) ratio is one of the oldest and most frequently used metrics. ... 
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 ... 
What number of shares determines adequate liquidity for a stock?
Liquidity refers to how easy it is to buy and sell shares without seeing a change in price. If, for example, you bought stock ... 
Executive Compensation: How Much Is Too Much?
The proxy statement can help determine whether a CEO is well compensated  or just overpaid. 
Spotting Cash Cows
We show you why some of these companies stand apart from the herd. 
Is maximizing stock price the same thing as maximizing profit?
Simply put: yes. A company's stock price will factor in many different variables including the type of industry the firm ... 
What's the difference between absolute P/E ratio and relative P/E ratio?
The simple answer to this question is that absolute P/E, which is the most quoted of the two ratios, is the price of a stock ... 
What is the difference between fundamental and technical analysis?
These terms refer to two different stockpicking methodologies used for researching and forecasting the future growth trends ... 
Value Investing Using The Enterprise Multiple
This simple measure can help investors determine whether a stock is a good deal. 
Can a company declare a dividend that exceeds its earnings per share?
Yes, it can. In fact, many wellknown Fortune 500 companies have paid dividends in years where they posted negative earnings ... 
Blending Technical And Fundamental Analysis
Find out how you can combine the best of both strategies to better understand the markets. 
Uncovering Hidden Debt
Understand how financing through operating leases, synthetic leases, and securitizations affects companies' image of performance. ... 
Stocks with high P/E ratios can be overpriced. Is a stock with a lower P/E always ...
The short answer? No. The long answer? It depends.The pricetoearnings ratio (P/E ratio) is calculated as a stock's current ... 
Can a stock have a negative pricetoearnings (P/E) ratio?
Yes, a stock can have a negative pricetoearnings ratio (P/E), but it is very unlikely that you will ever see it reported. ... 
Operating Performance Ratios
Learn about the fixedasset turnover, sales/revenue per employee, operating cycle and dividend payout ratio. 
Mutual Fund Investment Quality: Conclusion
Check in here for an overview of mutual fund investment quality and how to find it. 
Understanding Economic Value Added
Discover the simplicity of this important valuation metric. We reveal its underlying ideas and examine each of its components. ... 
Behavioral Finance
Learn the science behind irrational decision making and how you can avoid it. 
Using Accounting Analysis To Measure Earnings Quality
Learn the accounting concepts that will help you to dig into to the details to find earnings manipulation. 
Debt Ratios
Learn about the debt ratio, debtequity ratio, capitalization ratio, interest coverage ratio and the cash flow to debt ratio. ... 
Fund Performance Metrics
With mutual funds, it is crucial to look at all components of investment quality and not performance alone. 
A Guide To Conference Board Indicators
Learn to put the CB data sets to trading use. Each chapter takes you through one of the board's benchmark indicators or surveys, ... 
Cash Flow Indicator Ratios
Learn about the operating cash flow to sales ratio, free cash flow to operating cash flow ratio and free cash flow coverage ... 
Introduction To Fundamental Analysis
Learn this easytounderstand technique of analyzing a company's financial statements and reports. 
Profitability Indicator Ratios
Learn about profit margin analysis, effective tax rate, return on assets, return on equity and return on capital employed. 
Analytical Commentary On A Fund
Independent fund investment research is the key to finding investment quality in a mutual fund. 
Scoring Fund Investment Quality
Learn some background on mutual funds and what factors can be used to assess their investment quality. 
Dow Theory
Learn about the foundation upon which technical analysis is based. 
Market Strength Tutorial
Here you can learn about some of the indicators that traders and brokers use to determine the direction and strength of the ... 
Investment Valuation Ratios
Learn about per share data, price/book value ratio, price/cash flow ratio, price/earnings ratio, price/sales ratio, dividend ... 
Measuring a Fund's Risk and Return
Learn the importance of the riskreturn relationship in selecting a mutual fund. 
Liquidity Measurement Ratios
Learn about the current ratio, quick ratio, cash ratio and cash conversion cycle. 
Understanding The P/E Ratio
Learn what the price/earnings ratio really means and how you should use it to value companies. 
Reading Financial Tables Tutorial
Learn about six common types of financial tables and figure out how to interpret them. 
Fundamental Analysis For Traders
Find out how this method can be applied strategically to increase profit.
Hot Definitions

Inverted Yield Curve
An interest rate environment in which longterm debt instruments have a lower yield than shortterm debt instruments of the ... 
Socially Responsible Investment  SRI
An investment that is considered socially responsible because of the nature of the business the company conducts. Common ... 
Presidential Election Cycle (Theory)
A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ... 
Super Bowl Indicator
An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ... 
Flight To Quality
The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
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