FAQs tagged as

Investing-Basics

  1. What is the difference between ceteris paribus and mutatis mutandis?

  2. Why is the time value of money (TVM) an important concept to investors?

  3. Why is the EBITDA margin considered to be a good indicator of a company's financial ...

  4. How attractive is the internet sector for a growth investor?

  5. What are some examples of different types of capital?

  6. Should commercial and investment banks be legally separated?

  7. What is the formula for calculating opportunity cost?

  8. Where can I find out about upcoming stock splits?

  9. What is the difference between EBITDA margin and profit margin?

  10. Can the government tax your capital gains from other countries?

  11. What's the difference between economic value added (EVA) and accounting profit?

  12. What is the point of calculating economic value added (EVA)?

  13. Can you sue an insurance company for not paying a claim over a waiver of subrogation ...

  14. What is a common strategy traders implement when using the Wide-Ranging Days pattern?

  15. What are some examples of fixed assets?

  16. How can I calculate break-even analysis in Excel?

  17. Why would I need total debt to total assets represented as a ratio, as opposed to ...

  18. Is a deficit in the balance of payments a bad thing?

  19. How does a company's capitalization structure affect its profitability?

  20. What are examples of popular companies in the banking sector?

  21. What trading strategies help investors withstand a drawdown?

  22. What is accounting fraud?

  23. How should investors interpret unlevered beta?

  24. What does dividend per share tell investors?

  25. Are there leveraged ETFs that track the banking sector?

  26. What does financial accounting focus on?

  27. What kinds of liabilities appear on the balance sheet?

  28. How are semi-variable costs similar to fixed costs?

  29. What is the difference between a balance sheet and a cash flow statement?

  30. What is the difference between capital gains and investment income?

  31. What is the difference between an expense and a liability?

  32. What items are considered liquid assets?

  33. What safeguards exist to prevent the abuse of power in a market economy?

  34. What are some ways to reduce downside risk when holding a long position?

  35. How does opportunity cost impact how cost of debt is evaluated?

  36. Are solvency ratios more concerned with the short-term or the long-term?

  37. Can you realize capital gains on intangible property?

  38. Where did the terms in-the-money and out-of-the-money come from?

  39. When is an expense ratio considered high and when is it considered low?

  40. Why is a mutual fund's expense ratio important to investors?

  41. What does a strong null hypothesis mean?

  42. How does disposable income influence the marginal propensity to consume (MPC)?

  43. Do companies measure their cost of debt with before- or after-tax returns?

  44. What is the difference between fixed cost and total fixed cost?

  45. How do I compare one junk bond to another?

  46. What does free cash flow to equity (FCFE) really tell an analyst?

  47. What causes dividends per share to increase?

  48. What is the difference between ex-ante moral hazard and ex-post moral hazard?

  49. Why would growth investors be attracted to the automotive sector?

  50. What are some ways to increase your disposable income?

  51. For what kinds of businesses is the fixed asset turnover ratio most important?

  52. Where on the internet can I look up price to sales ratios for specific companies?

  53. Why should investors be concerned with risk management?

  54. What are the differences between weak, strong and semi-strong versions of the Efficient ...

  55. Does agency theory apply to brokers and clients?

  56. What types of companies tend to have the most deferred revenue?

  57. What is the difference between a long position and a call option?

  58. Why does delta only range from 1 to -1?

  59. What is the difference between deferred revenue and accrued expense?

  60. What is the difference between pips, points, and ticks?

  61. Why is it important for a financial advisor to have a unique value proposition?

  62. Why is deferred revenue listed as a liability on the balance sheet?

  63. Which is more important when estimating cost of capital - debt or equity?

  64. How is cash flow affected by Average Collection Period?

  65. What are some of the limitations of looking only at the return on total assets?

  66. Why do shareholders need financial statements?

  67. What is the difference between a subsidiary and a wholly owned subsidiary?

  68. What is the formula for calculating net present value (NPV)?

  69. What are some examples of financial spread betting?

  70. What are some of the limitations of only looking at the rate of return for an investment?

  71. How do I determine what the right situation is to make a covered call?

  72. How do the risks of large cap stocks differ from the risks of small cap stocks?

  73. What is the formula for calculating inventory turnover?

  74. How can I protect my investment portfolio from recessions?

  75. What is the concept of utility in microeconomics?

  76. How are liquidity ratios different than solvency ratios?

  77. What is the maximum I can lose if I make a covered call?

  78. What commodities are not tradable?

  79. What are analysts looking for when they use free cash flow to equity (FCFE)?

  80. Why are efficiency ratios important to investors?

  81. How did Nathan Rothschild attain his wealth?

  82. Is the banking sector appropriate for a growth investor?

  83. What are some examples of cash flow from operating activities?

  84. What are the different ways that corporations can raise capital?

  85. What are the different ways to calculate depreciation for tangible assets?

  86. How exactly do I use the price to sales ratio to evaluate a stock?

  87. What is the difference between cost of debt capital and cost of equity?

  88. What are the main advantages of fixed income securities?

  89. Why has the price to sales ratio become a more popular metric than it was in the ...

  90. What is considered a favorable price to sales ratio?

  91. What kinds of companies are the best candidates for evaluation using the Gordon Growth ...

  92. How should investors interpret a company's cash conversion cycle (CCC)?

  93. How does a company choose between debt and equity in its capital structure?

  94. What is an option's implied volatility and how is it calculated?

  95. Should I look at a company's operating profit or net profit?

  96. What are common mutual funds an investor should consider for investing in banks?

  97. What advice has Richard Branson given to would-be entrepreneurs?

  98. What advice has Jeff Weiner given to would-be entrepreneurs?

  99. What is the difference between variable cost and fixed cost in economics?

  100. Over what sort of time span should I be examining a company's EBITA margin?

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