As an investment adviser you must know how to evaluate the financial stability of a company issuing a particular security and how to estimate that investment's potential growth over time. It's important to have the ability to review a corporation's financial statements, especially the income statement and balance sheet.

In addition, we'll touch on the time value of money, and the internal rate of return - both of which are important to consider when making investment recommendations.

The Income Statement: Key Calculations

Related Articles
  1. Investing

    Ratio Analysis Tutorial

    If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios.
  2. Investing

    What is Quantitative Analysis? 3 Quants Define It

    Quantitative analysis refers to the use of math to analyze markets and investments.
  3. Financial Advisor

    Understanding Internal Rate Of Return

    Internal rate of return, or IRR, is one of the most popular methods of evaluating potential projects. Learn more about this important metric.
  4. Investing

    What's a Quant?

    What does a quantitative analyst actually do? We asked them.
  5. Personal Finance

    Quantitative Analyst: Career Path & Qualifications

    Learn about the work that quantitative financial analysts do everyday, and determine what it takes to become a successful professional in the field.
  6. Investing

    Explaining Financial Statement Analysis

    Financial statement analysis is the process of reviewing a company’s statements to gain an understanding of its financial health.
  7. Investing

    How to Evaluate Stock Performance

    Learn how to evaluate stock performance. While what you look for in a stock could be different from another person, the way you analyze performance is the same.
  8. Investing

    Breaking Down The Balance Sheet

    Knowing what the company's financial statements mean will help you to analyze your investments.
  9. Investing

    How Quantitative Easing Affects the Labor Market

    The Federal Reserve's unprecedented quantitative easing (QE) program impacted many areas, including the labor market, but are the effects good?
Frequently Asked Questions
  1. What is the difference between secured and unsecured debts?

    The differences between secured and unsecured debt, and how banks buffer risks associated with each type of loan through ...
  2. How Many Times has Warren Buffett Been Married?

    Warren Buffett has been married twice in his life, but the circumstances surrounding the marriages were unconventional.
  3. What's the smallest number of shares of stock that I can buy?

    Many people would say the smallest number of shares an investor can purchase is one, but the real answer is not as straightforward. ...
  4. What is an economic moat?

    An economic moat refers to a company's ability to maintain competitive advantages to protect its long-term profits and market ...
Trading Center