Stocks and Businesses
Financially educated investors realize that they are buying a share of a business when buying stocks. Having a sound understanding of businesses is the key to building significant wealth.
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Understanding Business Valuations
Businesses are valued based on their future earnings and a popular method is to calculate a valuation using the Discounted Cash Flow method.
The Different types of Earnings
The different types of company earnings include Reported earnings, Diluted earnings, Restated earnings, Retained earnings, Forecast earnings and Consensus earnings.
Bankruptcy of Listed Companies
A company faces bankruptcy when it can no longer pay its expenses.
Bankruptcy and the Z-score
The Z-score is a probability indicator for the likelihood of a company going bankrupt.
Buying Stocks while in Bankruptcy
Investing in a company while they are in bankruptcy proceedings is a high risk strategy.
Reporting of the Financial Statements
How companies report their financial activities – the income statement, the balance sheet statement and the cash flow statement.
Reading the Income Statement
Learn how to read a company’s reported income statement and understand the various sections in this report.
Reading the Balance Sheet Statement
Learn how to read a company’s reported balance sheet statement and understand what stockholders’ equity is. Learn about current and noncurrent assets and liabilities.
Reading the Cash Flow Statement
Learn how to read a company’s reported cash flow statement. Learn about cash flows from operating activities, investing activities and financing activities.
Understanding Basic Accounting
We all use basic accounting throughout our lives, whether we realize it or not.