Owning a share in a company means that you are an integral part of the puzzle that helps the company tick. Typically, investors choose to own a stock for one of two profit driven reasons: the dividends they will receive from the company, or the hope that the stock price will increase and they will be able to sell it for a higher price than they purchased it at. Read this article for information on these two reasons investors purchase stocks!
Accounting, Investing, Management, and Marketing Lessons! This is just a sample. Our Business lessons combine reading, videos, infographics, and quizzes to ensure concept mastery.
Big corporations are very powerful entities that can possess more capital than some countries in the world. However, every company begins as a small start-up business. Once a private company grows large enough, they can become public, meaning they sell stocks to the public to finance future endeavors. After selling stocks to the public, the company will have to pay dividends to those who have chosen to invest in them. Read this article for more information about this process.
Asset Valuation is the process by which an individual can assess the changes in a companies asset overtime. This is done largely through comparing ratios from a company’s financial statement, but can also be done more advanced theories, both of which are explained in this article.
For professional investors, like day traders and financial professionals, there are ways to multiply the investment amounts and returns by using more complex types of brokerage accounts and trading strategies. This includes margin accounts, which lets investors borrow money to invest, international investing, or buying stocks and bonds from other countries, and using market timing strategies to try to “beat the market”. Read this post for margin account and market timing information!
Building the next “Big Thing”. Being your own boss. Getting the full rewards for your work. There are a lot of reasons to start a business (along with lots of risks), but taking the plunge is a step every entrepreneur has to face if they plan on striking out on their own. This post describes why people start their own businesses, and the risk versus reward of doing so.
Stocks are a share of ownership of a company. If you own a stock, you are involved in some of its management decisions, and you are entitled to some of the company’s profits. This article describes stocks in greater detail, explains their history, where they come from, the types of stocks that exist, and more!
The balance sheet is a financial snapshot of the firm on a specific date. Read more to find out why a balance sheet is important, to see an example of one, and to learn how to find a specific company’s balance sheet.
The Income Statement is one of the financial statements that all publicly traded companies share with their investors, which shows the company’s sales, expenses, and net profit (or loss) over a period of time–usually 3 months, year-to-date, and twelve months. This article describes the basics on understanding a income statement.
The Cash Flow Statement is one of the four financial statements required by the SEC based on the U.S. GAAP (Generally Accepted Accounting Principles). This statement presents where the cash and its equivalents are coming from and where they are being allocated.