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
Category Archives: Definitions
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
I wanted to let everyone know that I just uploaded a free e-book. To download a copy of “A Simple Overview of Financial Planning. Book 1: Market Overview”, please click this link or go to the menu on the top … Continue reading
What is a Commodity? A commodity as it is defined in the financial markets is a physical good that is considered the same as all other goods of that same commodity classification. For example: cattle is a commodity. One cow … Continue reading
Definition Rebalancing is simply buying and selling things in a portfolio so a particular asset class is a previously agreed upon percentage of the portfolio. For Example A client (with a $100,000 portfolio) told their advisor they want their portfolio … Continue reading
Definition of Shorting The usual ways of thinking about stocks or commodities is that you buy them at a given price and then you later sell it. Shorting reverses that process. When you short something you borrow the stock or … Continue reading
General Definition A derivative is any contract that concerns the buying and selling of securities or commodities at a future date. For example: you’re a restaurant owner and you meet a great apple supplier. You currently have plenty of apples … Continue reading
What is Fundamental Analysis? Fundamental Analysis is a way that people attempt to find how much a company is worth. They then try to buy the stock when the market price is below the actual value of the company. They … Continue reading
In case you missed my newsletter I would like to define a mutual fund again. If you like you can see my other definition posts on stocks and bonds. A Mutual Fund is a legal entity where the manager collects money … Continue reading
In this post “what is a bond?” I’m going to define a bond, the secondary market, and a major way interest rates are determined. If you missed my earlier post on stocks, please click here. What is a bond? Borrowing … Continue reading