Stocks

What Are the Assertions Related to Equity?

What Are the Assertions Related to Equity?

Statement on Accounting Standards 106:15 governs assertions related to a firm's equity during an audit. At the end of an accounting period, a firm's management and shareholders ...

How to Calculate the Basis for Inherited Stock

How to Calculate the Basis for Inherited Stock

The basis, or cost basis, of a stock investment is the amount initially invested in the shares. If the shares are inherited, the heir gets a new basis -- the value of the stock at ...

How to Calculate Long-Term to Total Capitalization

How to Calculate Long-Term to Total Capitalization

"Total capitalization" is “the total long-term debt and all types of equity of a company that constitutes its capital structure,” according to the Duke ...

Perpetual Vs. Nonperpetual Preferred Stock

Perpetual Vs. Nonperpetual Preferred Stock

While many individuals choose to invest in common stocks, some investors find value investing in preferred stocks. An attractive feature of preferred stocks for some investors is ...

How to Calculate Equity Net Long Exposure

How to Calculate Equity Net Long Exposure

The hedge fund offers sophisticated investors an opportunity to earn gains while minimizing risk, regardless of market conditions. This is accomplished via "hedging," which occurs ...

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 ...

What Are the Elements That Must Be Included in the Equity Section of a Balance Sheet?

What Are the Elements That Must Be Included in the Equity Section of a Balance Sheet?

The owners' equity section of a company's balance sheet displays the balances of owners' equity accounts at a given point in time. Owners' equity sections can be divided into two ...

Delisting Process for the NASDAQ

Delisting Process for the NASDAQ

For stocks listed on the NASDAQ exchange, the prospect of delisting presents a serious challenge. Delisted stocks often lose a substantial portion of their market capitalization ...

How Much Money Do You Need to Open an Investment Account in the Stock Market?

How Much Money Do You Need to Open an Investment Account in the Stock Market?

If you are new to investing in the stock market, you probably have questions about how to get started and how much to invest. Deciding how much money you need to open an ...

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 ...

Advantages & Disadvantages of a Business Going Public & Selling Stocks

Advantages & Disadvantages of a Business Going Public & Selling Stocks

Taking a company public means registering securities that can be sold to the public rather than to private investors. For many companies, going public confirms their place in 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 Solve for Equity Dividend Rate

How to Solve for Equity Dividend Rate

An equity dividend rate measures the annual cash flow an investment property generates before taxes as a percentage of the cash initially invested in the property. While an ...

How to Buy Stocks of Privately Owned Companies

How to Buy Stocks of Privately Owned Companies

Investing in a company before it trades publicly on the open markets can sometimes be extremely lucrative if you pick the right company. Just imagine how wealthy you would be had ...

How to Calculate Changes in Fair Value Investments

How to Calculate Changes in Fair Value Investments

An investment’s fair market value is the price for which it would sell on the open market. A company must record the change in fair market value of certain investments it ...

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 ...

How to Calculate the Stock Dividends Distributable

How to Calculate the Stock Dividends Distributable

Dividends are payments that investors receive from a company in relation to the purchase of stock. Stock dividends are a type of dividend in which the company issues extra stocks ...