Stocks

How Are Financial Statements Different in Different Industries?

How Are Financial Statements Different in Different Industries?

Both for-profit and nonprofit businesses use three basic types of financial statements -- the balance sheet, profit and loss statement and cash flow statement -- to help make ...

What Happens After the Offering of Common Stock & Warrants?

What Happens After the Offering of Common Stock & Warrants?

Issuing stock through an initial public offering is one of the key steps in a company's growth, But while an IPO represents the end of a long, complex process, it is also the ...

The Advantages of the Pay Back Method of Investment Appraisal

The Advantages of the Pay Back Method of Investment Appraisal

Evaluating capital investment options requires calculating the potential compensation and the risk of each project. The pay back method of investment appraisal establishes the ...

Corporate Portfolio Analysis Techniques

Corporate Portfolio Analysis Techniques

A corporate portfolio analysis is similar to the kind of scrutiny you apply to your personal portfolio. You look at the various investments and gauge their individual performance, ...

Partnership Financial Statements Vs. Corporate Financial Statements

Partnership Financial Statements Vs. Corporate Financial Statements

All businesses keep financial records as a way of tracking the business's performance. Partnerships, which divide ownership of a business between two or more people, account for ...

How to Calculate a Default Risk Premium

How to Calculate a Default Risk Premium

Though bonds should pay their principal and dividends when they mature, corporations that issue them might first declare bankruptcy, depriving investors of returns. This risk ...

Can an S Corporation Sell Preferred Shares?

Can an S Corporation Sell Preferred Shares?

An S corporation is a special type of corporation that is treated as a small corporation by the Internal Revenue Service (IRS) for federal income tax purposes. The tax structure ...

Difference Between Strategic & Financial Mergers

Difference Between Strategic & Financial Mergers

True mergers are very rare. In most mergers, one company usually ends up having greater control or influence over the other one in the combined entity. A true merger results in ...

Does Inclusion in an Index Increase the Price of a Stock?

Does Inclusion in an Index Increase the Price of a Stock?

An index is a basket of stocks designed to track and measure the performance of the market or a specific segment of it. There are dozens of domestic and international stock ...

How to Determine the Required Rate of Return for Equity

How to Determine the Required Rate of Return for Equity

A stock's required rate of return on equity calculates the expected return with respect to how risky the stock is as an investment. The riskiness of the stock is offered by its ...

Is Paid-In Capital More Important to an Investor?

Is Paid-In Capital More Important to an Investor?

Paid-in capital, also called contributed capital, is the money invested by stockholders when they buy shares of stock directly from a company in a private sale. This money ...

How to Calculate the Number of Shares in a Firm

How to Calculate the Number of Shares in a Firm

There are two basic types of stock: common stock and preferred stock. When a company incorporates, it authorizes a certain number of shares of common and preferred stock. This is ...

The Average Real Rate of Return of Common Stock

The Average Real Rate of Return of Common Stock

Ask an economist to define the real rate of return on common stock and chances are he will say the percentage gained or lost after adjusting earnings for inflation. The rates of ...

How to Buy Stocks During an IPO

How to Buy Stocks During an IPO

An initial public offering (IPO) is the first time a company sells stock to the public. An IPO typically represents a small fast-growing company looking to raise capital to grow ...

Mutual Funds Vs. Financial Intermediaries

Mutual Funds Vs. Financial Intermediaries

Mutual funds and financial intermediaries have a few features in common. However, in broad terms, the two differ considerably in that the most typical types of financial ...

How to Figure Out Par Value on Balance Sheet

How to Figure Out Par Value on Balance Sheet

Each share of stock issued by a company includes a par value, or a stated value. The company uses this value to record the amount of stock issued in the financial records. For ...

How to Calculate Maturity Risk Premiums

How to Calculate Maturity Risk Premiums

When analysts or investors gather information to estimate the required return on a bond, they build up the projected return by layering a series of premiums on top of the ...