FAQs tagged as

Investing-Basics

  1. What is considered a healthy operating profit margin?

  2. What does the underwriter do in a new stock offering?

  3. What's the difference between EaR, Value at Risk (VaR), and EVE?

  4. What are the pros and cons of using the S&P 500 as a benchmark?

  5. How do I interpret a Security Market Line (SML) graph?

  6. How do I reconcile an account?

  7. Is all paper money fiat money?

  8. What does 100-plus accrued interest mean?

  9. What are the major differences between investment banking and private equity?

  10. What are common risks associated with investing in the aerospace sector?

  11. What is the relationship between confidence inferrals and a null hypothesis?

  12. What are some advantage of raising capital through private placement?

  13. How is convexity used in risk management?

  14. What are the main disadvantages of fixed income securities?

  15. How are negative correlations used in risk management?

  16. What options strategies are best suited for investing in the automotive sector?

  17. How are leveraged buyouts financed?

  18. What is the best software for calculating trial balances?

  19. How is covariance used in portfolio theory?

  20. How can you use a debt service coverage ratio (DSCR) to evaluate real estate investments?

  21. Are mid-cap stocks more profitable than large-cap stocks?

  22. Why would a company choose to pay a stock dividend instead of a cash dividend?

  23. Why is purchasing stocks on margin considered more risky than traditional investing?

  24. What can I tell about a company by looking at its solvency ratios?

  25. How does agency theory propose to deal with the agency problem?

  26. How is the Chairman of the Securities and Exchange Commission (SEC) chosen?

  27. What are some famous scandals that demonstrate the agency problem?

  28. What techniques are most useful for hedging exposure to the automotive sector?

  29. Does 'hurdle rate' mean different things in different industries?

  30. How do you conduct effective social responsibility training?

  31. What key U.S. economic indicators do economists track to determine if the conditions ...

  32. What is an adjusted cost basis and how is it calculated?

  33. What's the difference between a merger and a hostile takeover?

  34. What's the difference between Porter's 5 forces and SWOT analysis?

  35. What are examples of popular companies in the metals and mining sector?

  36. What is the best general ledger software for small businesses?

  37. How do I import QuickBooks Pro Account trial balances for the first time?

  38. Why does accumulated depreciation have a credit balance on the balance sheet?

  39. How can an investor determine the efficiency of a company's working capital management?

  40. What are common examples of bad decisions made due to the sunk cost fallacy?

  41. What are some of the best small cap index funds?

  42. What's the difference between a collateralized debt obligation (CDO) and a collateralized ...

  43. What are some of the arguments in favor of debt securitization?

  44. Why are treasury bond yields important to investors of other securities?

  45. What does a negative correlation coefficient mean?

  46. What does a buyback signify about a given company's financial health?

  47. What is the average annual dividend yield of companies in the banking sector?

  48. What allocation of a diversified portfolio should be exposed to the automotive sector?

  49. How do modern corporations deal with agency problems?

  50. What are the components associated with working capital management?

  51. What is the difference between risk and opportunity cost?

  52. What does a low working capital ratio show about a company's working capital management?

  53. Where do deferred tax liabilities come from?

  54. How do I set a strike price in a put?

  55. What are the different types of tangible assets?

  56. What is the difference between a savings & loan company and a bank?

  57. What kind of securities should a risk-averse investor buy?

  58. What is the history of the S&P 500?

  59. What percentage of a diversified portfolio should be invested in the drugs sector?

  60. Which factors most influence fixed income securities?

  61. Is market risk premium the same for all investors and investments?

  62. What are the different equity financing options available to companies in the United ...

  63. What are the main factors that drive share prices in the automotive sector?

  64. What are the differences between Levels I, II, and III American Depository Receipts ...

  65. How can I profit from a decline in the drugs sector?

  66. Why is trading volume important to investors?

  67. What are common advantages of investing in large cap stocks?

  68. What are the official FASB guidelines regarding contingent liabilities

  69. How does financial accounting differ from managerial accounting?

  70. How do investors and lenders benefit from financial accounting?

  71. How is the risk-free rate determined when calculating market risk premium?

  72. What types of investors are susceptible to interest rate risk?

  73. Does the S&P 500 index include dividends?

  74. What is a risk pyramid and why is it important?

  75. What are the different types of operating expenses?

  76. Where did Modern Portfolio Theory (MPT) come from?

  77. What is the best software for managing bills of lading?

  78. What is a relative standard error?

  79. Besides free cash flow to equity (FCFE), what are other metrics for estimating a ...

  80. When does positive correlation prove causation?

  81. How does the risk of investing in the Internet sector compare to the broader market?

  82. What is considered a good net debt-to-equity ratio?

  83. Can private investors benefit from collateralized debt obligations (CDO)?

  84. What is the direct method of calculating cash flow from operating activities?

  85. How do sunk costs create a barrier to entry for new firms?

  86. How is absorption costing treated under GAAP?

  87. Besides operating leverage, what are other important forms of leverage for businesses?

  88. How far above the hurdle rate makes for a good investment?

  89. What's the difference between a trial balance and a balance sheet?

  90. What are the advantages and disadvantages of preference shares?

  91. How is salvage value used in depreciation calculations?

  92. What does it mean to capitalize accrued interest?

  93. What is the difference between the capital adequacy ratio and the leverage ratio?

  94. What's the difference between a trial balance and an adjusted trial balance?

  95. How do operating expenses affect profit?

  96. What are my options when I get a margin call?

  97. What's the difference between a merger and an acquisition?

  98. How does working capital management affect corporate earnings?

  99. How does the bottom line affect shareholder returns?

  100. How are S&P 500 index components weighted?

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