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People often talk about the Dow Jones when they talk about how the market is doing. The Dow, however, is not the market. It is an index. Not even a very good one but everyone uses the Dow number. There … Continue reading
Tag Archives: Definition
The stock market in May was good. The Dow went up about 655 points or 1.9%. In this newsletter we will discuss what an asset is and common examples of different types of assets. An asset is anything you own … Continue reading
The stock market is moderately higher this month. The Dow is up about 650 dollars or 2.5%. Other indexes are up different amounts, some more and some less. More on this topic in a moment as we go over a … Continue reading
The market continued its recovery this month. The Dow had its best quarter in many years. The topic of this newsletter will be definitions of several words and concepts that you are likely to hear in relation to the investment … Continue reading
Definition of Internal Rate of Return Internal Rate of Return is a way of determining the value of a project. It is simply the discount rate that makes the Future Value of a series of cash flows equal to the … Continue reading
Definition of Net Present Value Net Present Value is a way of determining the value of a project. It is simply the Present Value of a series of cash flows. Before we talk more about that, we should review the … Continue reading
The Definition of a Business Cycle Over time an economy will grow and shrink. That growing and shrinking sequence will then repeat itself ad infinitum. That cycle is called the Business Cycle. There are four main stages of the Business Cycle, … Continue reading
Definition of Threats Threats are the ways that a company could theoretically be damaged in the future. What could happen in the future that hurts their profits and business? Let’s take a hypothetical restaurant (R). Possible Threats for R are … Continue reading
Definition of Opportunities Opportunities are the ways that a company can improve itself. How can they make themselves more profitable? Let’s take a hypothetical restaurant (R). Possible Opportunities for R (chances for improvement) are trying a new recipe, opening another … Continue reading
Definition Weaknesses are what a company does worse than their competition. It is what makes them different in the marketplace. Let’s take a hypothetical restaurant (R). Possible Weaknesses for R (disadvantages they have versus their competition) are worse food, more expensive … Continue reading