Stocks

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 ...

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 ...

How to Calculate Unrealized Gain and Loss of Investment Assets

How to Calculate Unrealized Gain and Loss of Investment Assets

Calculating unrealized gains and losses on an investment asset shows the amount and type of changes in its value over time. Although the value changes, as long as the investor ...

How to Calculate Carrying Value Per Share

How to Calculate Carrying Value Per Share

Carrying value per share, also called book value per share, measures the theoretical amount that a person owning one share of a company would receive if the company were to be ...

Difference Between Ratings & Shares

Difference Between Ratings & Shares

Advertising makes the world go round, or at least, the world of mass media. Advertisers pay to have their products and services highlighted in front of viewers and listeners, and ...

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 ...

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 ...

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 ...

Advantages & Disadvantages of Investing in Emerging Economies

Advantages & Disadvantages of Investing in Emerging Economies

Emerging economies have great potential for growth because there is still major development occurring. Investors can gain exposure to these regions and see dramatic increases in ...

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 Unlevered Cost of Capital

How to Calculate Unlevered Cost of Capital

Companies raise capital by either raising debt or raising equity. To raise debt, the company borrows money, and to raise equity, it issues new stock. The firm's levered cost of ...

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 ...

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 ...

Top 5 Financial Concepts in Accounting 101

Top 5 Financial Concepts in Accounting 101

Financial accounting is a complicated subject with many principles that companies use to manage their financial accounting process. However, even with its complexity, individual ...

Describe the Five Steps to Capital Budgeting

Describe the Five Steps to Capital Budgeting

Capital budgeting involves deciding what new projects a company should invest in. Business owners strive to determine which projects would yield the most return over a given ...

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 ...