The accounting equation helps investors and business owners understand how the company is performing. The one statement that fundamentally uses this equation is the balance sheet. Warren Buffett prefers analyzing the balance sheet first because he believes it’s harder for companies to hide information there. By contrast, most investors focus on the income statement. Source: […]
Continue readingMeta Description (SEO):Learn the basics of the income statement in this beginner-friendly guide. Understand revenues, expenses, gross profit, EBITDA, and the “bottom line” with simple explanations and examples. Related: Already know about the income statement? Jump right to the quiz. Introduction If you’ve ever wondered how businesses measure their profitability, the income statement is where […]
Continue readingIncome Statement Quiz Income Statement Quiz Next If you got less than 8 out of 10, you may want to review the blog post that is related to this quiz. It covers all the items in the quiz and after review, you should be ready to get a much better score.
Continue readingWhy 90% of Options Traders Lose Money – The Information in This Article Can Help You Be Part of the 10% Who Don’t The majority of new options traders lose money. It’s a reality (or at least pretty close to this number). The good news is that we can help you reduce your risks of […]
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You are doomscrolling and you come across an enticing short ad that promises you can retire early by using automated AI trading. You even click through the ad to find out the details. Many AI videos warn about how people are making millions from AI, but if you wait too long, you’ll be missing out […]
Continue readingDiscounted cash flows (or DCF) is a technique that can help determine the value of a firm based on it’s cash flows discounted with a rate of return required by investors. This rate of return is often the source of stress for novice investors. In this article, we’ll discuss some shortcuts that you could take […]
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To realize the best possible investing experience, both the bullish side and the bearish side need to be considered. This post describes both market views.
Continue readingHow does your broker protect your money and account information? The work of custodians is everything. Custodians protect and manage your assets between you and your broker. We’ll explain how custodians secure your brokerage account in this piece. Brokerage accounts need custody. They assure accurate transactions, asset protection, accurate records, and timely tax payments. Investors […]
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Tempted by yields? Learn why chasing yields could be a mistake that could hurt your returns.
Continue reading“Save for a rainy day.” How many times have you heard that phrase? For many of us, it’s good advice. It’s scary to scramble to find cash when an emergency occurs. But for companies, it’s not so straightforward. Saving for a rainy day is not the best use of investor money and causes companies to […]
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