Overview All companies on the stock market are required to provide information on their company to the public. They are required to provide financial statements (income statement, balance sheet, statement of cash flows). See previous post for information on those … Continue reading
Determine An Inventory Of Your Situation Think of it like a balance sheet in accounting if you are familiar with the set up. List all your assets at fair market value. Then list all your debts, amounts AND interest rates. Finally list … Continue reading
The market roared ahead this month and now has hit an all-time high. The Dow went up 502 points (2.8%). The S&P went up 75 points (3.6%). The Russell 2000 (small cap companies that I like) went up 68 points … Continue reading
Quick Definition Over time things gets more expensive. A dollar today can buy less stuff than a dollar 30 years ago, and it can buy more stuff than a dollar 30 years from now. Inflation means the purchasing power of … Continue reading
Definition Opportunity Cost is the value of the best alternative choice that you decide to forego. Example 1 You are trying to decide whether or not to wake up early tomorrow to go for a run or to sleep in. … Continue reading
What are Taxes? Think of the government as a giant company. By living in the country, we are in essence agreeing to buy all of the goods and services that the company (the government) provides. The taxes are the payment. … Continue reading
Update I added a new definition to the e-book and fixed a few typos. Download it for free here. Intention My intention with the e-book was always to increase knowledge in other people and provide information that I think they will … Continue reading
Overview A financial statement is a report that presents the financial facts about a company. There are 3 main types. Those types are a balance sheet, an income statement, and a statement of cash flows. You can also prepare financial … Continue reading
In Short There are 2 main ways that a brokerage house makes money. Those ways are through commissions and interest on cash balances. Commissions This type is what most people automatically think of when it comes to this topic. Every time … Continue reading
In Short Risk is the possibility that at a particular moment in time, you won’t have enough money to pay for whatever you need to pay for. Fluctuation is Noise The market fluctuates up and down like a roller coaster. … Continue reading