Stocks

How to Calculate Return on Equity From Company Balance Sheets

How to Calculate Return on Equity From Company Balance Sheets

Return on Equity (ROE) is one of the most important indices for assessing a company's performance. It describes how effectively the company uses owner or shareholder equity to ...

How to Calculate Price Weighted Average for Stocks

How to Calculate Price Weighted Average for Stocks

In its simplest form, a price weighted average is just the average price of a group of stocks. It's considered "price weighted" because the same percent increase in a ...

How to Calculate Stockholders Equity for a Balance Sheet

How to Calculate Stockholders Equity for a Balance Sheet

Shareholders' equity is the term used to indicate ownership in an incorporated business. The term is also used interchangeably with the "book value" of a business, according to ...

A Comparison of Financial Ratio to Industry Average

A Comparison of Financial Ratio to Industry Average

Analysts, company management and lenders use financial ratios to assess a firm's financial health and operational efficiency. Financial-ratio analysis performed throughout the ...

Tax Implication of Selling a Mutual Fund Roth IRA

Tax Implication of Selling a Mutual Fund Roth IRA

A Roth IRA is a type of individual retirement arrangement that allows working taxpayers to contributed to a tax-advantaged account with after-tax dollars. You may purchase and ...

How to Calculate Capital Expenditure Depreciation Expense

How to Calculate Capital Expenditure Depreciation Expense

A fixed business asset such as furniture, equipment or an office building is considered a capital expenditure. Unlike operating expenses, which receive tax deductions in the year ...

How Does a Dutch Auction Work?

How Does a Dutch Auction Work?

A Dutch auction differs from a regular auction in that it opens with a high asking price, instead of a low one. Many nations' treasury departments, including the U.S. Treasury, ...

Substitute Payment in Lieu of Dividends

Substitute Payment in Lieu of Dividends

The payment in lieu of dividends issue arises in conjunction with the short sale of stocks. Short selling is a trading strategy to sell shares a trader does not own, and buy them ...

How to Calculate a Stock Option Breakeven Point

How to Calculate a Stock Option Breakeven Point

Stock market options are derivative contracts that allow a trader to profit from a rise or decline in a share price. The advantage of using options is that a trader commits a much ...

Differences in Venture Capital Vs. Investment Banking

Differences in Venture Capital Vs. Investment Banking

One thing almost all start-up businesses have in common is the need for cash to get the company going. Finding investors for an idea is often critical to ensuring its success. ...

Difference Between Assets & Plant Assets

Difference Between Assets & Plant Assets

Anything a company owns that holds value qualifies as an asset. Assets help a company generate revenue. Accountants record every asset on a company's balance sheet, even if it was ...

How to Calculate Net Asset Value for a Hedge Fund

How to Calculate Net Asset Value for a Hedge Fund

On the surface, a hedge fund appears quite similar to a mutual fund. Both organizations pool money from investors and use that money to generate the highest possible return on ...

Difference Between Authorized & Outstanding Shares

Difference Between Authorized & Outstanding Shares

Shares represent a shareholder's ownership interest in a corporation. A corporation issues shares to finance the company's operating activities, to expand and pay existing ...

How to Calculate Return on Indices in a Stock Market

How to Calculate Return on Indices in a Stock Market

The stock market refers to a index measuring stocks. The U.S. has a variety of indices to measure the market. The Dow Jones Industrial Average, the Nasdaq Composite and the ...

How to Calculate for Stock Issuances

How to Calculate for Stock Issuances

Companies issue stock to raise additional business capital. Companies may choose to raise additional capital for a number of reasons, but typically do so for expansion and ...

Redeemable vs. Retractable Preferred Shares

Redeemable vs. Retractable Preferred Shares

With redeemable preferred shares, the issuer has the right to redeem the outstanding stock from the buyers at a specific price. Redeemable preferred shares are also referred to as ...

Importance of Accounting Principles

Importance of Accounting Principles

Corporations, non-profits and government organizations must prepare their financial statements in accordance with generally accepted accounting principles (GAAP) set by the ...