Two documents stand out when it comes to understanding a company’s financial health — the balance sheet and the income statement. More than just numbers on a page, these powerful tools give insight into how a company operates, where its money comes from, and how it manages its resources.
Investing isn't just about numbers and market trends, it's also about understanding the human mind. Behavioral finance is a field that explores how psychological factors influence our financial decisions, often leading us to act in ways that are not entirely rational.
In assessing a company's value, you need more information than simple numbers and balance sheets.
P/E (Price-to-Earnings) ratio is one of the more commonly used benchmarks, it is not always the most accurate, especially for companies that have not turned a profit or are not consistent in their earnings.
In stock analysis, the P/B ratio is one tool that every investor should have in their toolkit. It is very basic but effective, providing a quick read on whether a stock is underpriced or overpriced relative to the company’s intrinsic value.
Investors who realized the importance of derivatives in the wake of the 2008 financial crisis were able to save their investments from the worst of the storm.
In the world of investing, unpredictability is the only thing that is certain. The COVID-19 outbreak, which eliminated $6 trillion of the global stock market value in a week, is a perfect example of this fact.
Over the past few years, more and more investors have concluded that their financial objectives should be not only profitable but also moral.
Trading in stocks can be risky at one point or another, particularly when the market is unstable. However, not all stocks experience similar fluctuations when the market experiences upheavals.
Bear markets are part of the stock market's natural cycle, so they should not be considered a bad thi
There’s the age-old saying to never put all of your eggs in the same basket and for the right reason.
Think about an investor who invested their entire capital in a tech company in the 1990s with the expectation of getting a huge return on investment, only for the dot-com bubble to burst.