Category Archives: Finance

Creating Financial Statements

A company’s financial statements give investors, managers, and other “users” a complete, honest look at its financial health. Finished financial statements follow a standardized format, letting investors compare different companies in the same industry apples-to-apples. For the company’s financial reporting team, this presents a challenge – every business’s internal operations are different, but all activities Read More…

What is a Brokerage?

Brokerages exist to allow individuals to make investments into the larger market. In other words, they connect individuals to the markets as a whole. Securities Brokers help individuals trade securities – the security type will change depending on the broker, but they usually fall into these categories: Cash (including Foreign Exchange markets) Individual Securities Bonds Read More…

Building Case Studies

At some point in your business career you will likely be asked to build a case study. Whether it’s for school or for work, building a case study is a very methodical task. While case studies will differ across companies and sectors, your process should remain the same. When conducting a case study, you should Read More…

Corporate Debt

Do you ever wonder how companies have the money to build new stores, develop new products, or perhaps even buy another company? Usually companies do not keep enough cash for these transactions sitting in their bank account – it needs to be raised from outside investors. There are two main ways a company can fund Read More…

Ownership and Dividends

Why Own a Stock? Owning a share in a company means that you are an integral part of the puzzle that helps the company tick. Whether Facebook () or Amazon (), your investment has made you a part of the company. There are many caveats that come with being a part owner of a company: Read More…

What is Solvency?

Understanding financial solvency is as important to an investor as it is to a financial manager. Whether it’s having the money to pay off a friendly wager or having the capital to pay off a commercial loan, being solvent is necessary to achieve long-term success. Solvency is the possession of assets in excess of liabilities, Read More…

Risk Management Controls

Risk management is a very important part of any business because it allows for the matching and identification of risk and the associated losses (loss exposures). Practically, this means managers put in place Risk Management Controls. Most business operations are concentrating on maintaining a customer base and building growth. The Risk Management Controls are different Read More…

Cash Flow Analysis

Cash flow is a concept in accounting that refers to the spending or receiving of cash by an organization.  For a given period, cash flow is calculated by ending cash balance less starting cash balance.  It is important not to confuse cash flow with earnings, as cash flow is related to solvency (or how well Read More…