The price-to-book ratio is another ratio used in investing, mostly by value investors. It is one of those indicators they use to determine the value of a stock and how much more of it they can benefit from. This article elucidates the full definition of price-to-book ratio and how one can use it in his…
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In stock investing, it is important to base your decisions on sound analysis of the company’s performance and growth prospects. This is not possible without going through the nitty-gritty of a company’s financial statement. For instance, you need to know if it is generating revenues from its core businesses operation or if it has enough…
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You may hear about derivatives over the evening news quite often. However, these jargons are rarely explained in layman’s terms when mentioned in financial news. But what are derivatives exactly and how are these being used? Read through this brief explanation on derivatives to learn more about such a financial term. (more…)
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A bond refers to a debt security that pledges to make regular payments for a specified period of time. If you are wondering what a security is, it is a claim or entitlement on the issuer’s future assets or income. If you buy a bond, you are simply lending money in return for interest payments…
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In investment, there is this term called risk-free rate of return. In a relatively stable economic environment, the risk-free rate offers the minimum return that one can yield without taking on any risk (ie, a risk-free investment). But what is it really and how can it be used by a stock investor to make investment…
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We hear the word recession all the time? But what is it and why do recessions happen? The impact of an economic recession is utterly wide-ranging. Depending on its nature and extent, a recession's effects can be huge or minimal, direct or indirect. In any case, a recession is something that everyone should care to know…
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In difficult economic times, when huge businesses that were deemed too big to fail come crumbling down, there are in fact many ventures that can thrive and prosper. Many even take this opportunity to launch their businesses. Here are ten popular industries that not only survive during recessions and bad economies, but also tend to…
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