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Investing in Russia
Investing in Russia has gotten really widely promoted for the last period. I can remember the talks that stocks in Russia are the cheapest over the world for not less than year. The fact, that those stocks are st
http://www.investingforbeginners.eu/investing_in_russia-p0-i9
Investment in Bulgaria
Starting from the very beginning I will try to make clear why I am bullish about investing Bulgarian stock market. At first I would suggest to look at the chart below. Five year Bulgarian stock market in
http://www.investingforbeginners.eu/investment_in_bulgaria-p0-i10
Investing in Land - Agricultural REITs
Investing in land I have noticed an increased interest in agricultural land investments during the last period. And I can it understand completely. When stocks are so volatile and bonds may offer such low return
http://www.investingforbeginners.eu/investing_in_land_agricultural_reits-p0-i12
Foundation of the Europes Financial Market
The key question in Europe now is how European Union will look after few years from now. This question is the most important at these days for all the Europe and may have affect to the entire world.
http://www.investingforbeginners.eu/foundation_of_the_europes_financial_market-p0-i16
Baltic Investment
Baltic Stock exchange Baltic stock exchange now belongs to the world gigantic stock exchange NASDAQ OMX, and now is called NASDAQ OMX Baltic. Historically Lithuania, Latvia and Estonia had their own nati
http://www.investingforbeginners.eu/baltic_investment-p0-i21
Learning the basic investment concept: a good start in investing
The first step in investing is learning the investment concept itself. It is very important that you understand the basic rules in investing in order for your investment to profit and to prevent losses. As we all know,
http://www.investingforbeginners.eu/learning_the_basic_investment_concept_a_good_start_in_investing-p0-i28
How Oil Price Influence Investment Markets?
After Saudi and Russia decisions to increase supply oil has smashed to the unseen levels. But, what's next? Everything revolves around oil and it's inevitable that the fluctuations in the oil industry will
http://www.investingforbeginners.eu/how_oil_price_influence_investment_markets-p0-i31
Commodities
Commodities are goods or products that are traded in exchanges. Usually not all the goods that are produced are traded in exchange, only those which can be standardized enough to trade them at the identical price
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Derivatives
Derivative Financial Instruments Derivatives are so called because they are constructed from other traditional securities, and operate the rights to them. Apart from the fact that there are some basic derivative instrum
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Investing 10 NOT
INVESTING 10 things that you should try NOT to do: Do not let the emotions to take over control. The investment market is always full of emotions. It is very important to maintain sanity and
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Investment in Stocks
Stocks (shares) are investments that attract the most attention in financial markets, and perhaps stocks are worth it, because investors can expect the highest return from stocks among the range of traditional investme
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Investment in Mutual Funds
Investment Funds (Collective Investment) Investment in mutual funds is one of the most popular types of investment. A mutual fund is just a large and well diversified investment portfolio of many securities, in which ca
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Investment in Collectibles
Many kinds of collectibles may also be considered as investments, but their value and benefits are much more elusive, than more serious traditional investment instruments. Works of art, stamps, antiques, coins,
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Investment in Futures
Futures - derivative financial instruments, which can help to acquire some object in the future with pre-agreed price.In the case of futures, the seller undertakes to sell the object, while the buyer to purchase
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Investment in Forwards
Forwards – derivative financial instruments almost identical to the future contracts. This contract represents the parties committed to sell and buy the object at the predetermined time and price.Difference between
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Investment in Options
Options are very known derivatives and especially popular among investing speculators. Options has some attraction: every successful prediction can grow up invested amount a lot of times very quickly and potentia
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Investment in Swaps
Swaps - an investment tool used rarely at investing process. Typically, these contracts are used by financial institutions or other big companies in order to exchange cash flows in different currencies. In fact,
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Investment in Index Funds
Investment index funds are contrast to the actively managed funds. These funds do not try to exceed the benchmark, openly saying that just going to keep with it.And the serious advantage of them – applied f
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Investment in ETF Funds
ETF (exchange-Traded Fund) Investment in ETFs has become increasingly popular pushing out traditional investment funds. Few main factors added to popularity of this investment: availability of ETF's and low taxes compar
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Investing in Funds
Investment Funds Strategy Indeed, investing in mutual funds is not complete investment strategy, but only a part of it, or more precisely, only the choice of investment instrument. For example, if the strategy d
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Online Investing
Few decades ago all the investors was acquiring stocks calling to broker by phone or using some other way to contact him. However, computerization of the world has changed investing significantly. Online investing became
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Investment in Normal ETF
Normal ETF (exchange-traded fund) is an ETF that is not a Short ETF/Ultra ETF. Usually ETF is a traded index fund that follows some specific index (might be various indices: equities, bonds, commodities, specific
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Investment in Short ETF
Investment in Short ETF is very different from regular investing. “Short” – means short selling transactions when securities are loaned and sold with obligation to return it after some pre-agree
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Investment Adviser
Investment advisor/adviser does the same jog as investment consultant does. But investment advisor is a term used by the Securities and exchange Commission (SEC). So usually investment advisor refers to a company
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Investment Industry
An investment industry is a part of whole financial industry of the world. Finance sector includes not only investment industry but also other financial services: corporate finance, public finance, insurance
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Financial Market
A financial market is a term widely used to describe virtual place/mechanism that allows meeting the sellers and buyers of the investment and other financial products. In current times buyers and sellers do not m
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OTC Market
OTC (Over-The-Counter) market is decentralized market where financial assets are traded. Decentralized market means a contrast to the exchange trading. OTC market doesn’t have one place (no physical, no vir
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Stock Market
A stock market represents all the stocks (shares) that are issued and traded or just held. Stock market (equity market) is a part of a whole financial market but more extensive term than Stock exchange. Stock Exc
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Global Financial Market
A global financial market is a totality of all worlds’ financial markets. Every decent country has a Security exchange and larger states have few or several of them. As financial markets includes not o
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Bond Market
A bond market includes all the bonds (debt securities) that are issued and traded or just held. Bond market is a part of a whole financial market. This market covers all the fixed income securities that are
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Derivative Market
A derivative market is a totality of derivatives (futures, forwards, options, swaps and other) that have been created over the world. Some of the derivatives are standardized and are traded on exchanges whil
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Commodity Market
A commodity market is one of the main financial market parts. Commodities are basic resources that are extracted from earth or are the result from agriculture activities. Some commodities, like cheese are already
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FOREX Market
FOREX market (foreign exchange market) is a global network of trading in different currencies. It is the most liquid financial market with huge turnovers continuously without breaks. Lot commercial banks, central
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Stockholder Wealth Maximization
Stockholder wealth maximization is a main goal for firm’s managers in corporate finance. Stockholder wealth maximization is above the profit maximization because of long term orientation and better risk man
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Stock Market Crash
A stock market crash is a investing term used to describe fast and sharp decrease of all or almost all stock prices on the exchange. However, there is no exact definition how long and how strong market fall shoul
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Stock Buyback
A stock buyback (share repurchase) is a company’s purchase of its own stock on the market. It is contrary way to pay out capital for shareholders to dividends. Stock buybacks are getting more and more
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Initial Public Offering (IPO)
An initial public offering (IPO) is a first introduce of company’s shares to the stock market. However, during initial public offering shares are sold not on the stock exchange but on network of clients by
http://www.investingforbeginners.eu/initial_public_offering_ipo
Greenshoe
A greenshoe is an option to sell or buy shares during initial public offering IPO. This option is agreed between the company that goes public and the IPO organizer (some corporate finance firm). The
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Flipping
Flipping is partly an investment strategy, partly a speculation when investor resells acquired property quickly on purpose to get fast profit. Flipping is most common in IPO’s when retail inv
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Market Capitalization
Market capitalization (market cap) is a company’s value (price) on the stock exchange. Market capitalization is calculated by multiplying the outstanding share number by the last share price on the exchange
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Stock exchange
A stock exchange is an operator/company that takes bids from the sellers and buyers and executes transactions if conditions allow it. Usually stock exchanges offer trading not only for stocks but also for other f
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True Investment
True investment is a term used by Benjamin Graham to describe an investment that fits all his criteria of investment philosophy (policy). Later this term was used by Warren Buffet, but he followed Benjamin’
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Capital Investment Group
Capital investment group is an organization that can have many juridical forms. Usually capital investment group is privately held or public organization, that invests in stakes of non-listed companies, real esta
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Venture Capital
A venture capital is a capital provided by capital investment groups or private equity funds for small start up businesses. There are not many opportunities for young fast growing companies. If they
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Real Estate Investment Trust (REIT)
Real estate investment trust (REIT) is a corporate entity that invests exceptionally in to real estate sector. Usually securities of REIT’s are traded on stock exchange and every investor can easily acquire
http://www.investingforbeginners.eu/real_estate_investment_trust_reit
Private Equity Fund
A private equity fund is a fund that invests in a stakes of non-listed companies (private equity). Investment in private equity funds is much different from investment in mutual funds. They are illiquid, riskier
http://www.investingforbeginners.eu/private_equity_fund
Derivatives
Derivatives are securities (financial instruments) that are created by financial intermediaries synthetically, and are based on price or value of some primer assets or indicator. Usually such underlying assets ar
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Securities
Securities are financial instruments that represent rights to some assets. Securities can be listed or non-listed. Listed securities are traded on securities exchanges, which commonly are called as stock exchange
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Investment Bank
An investment bank is a financial institution that has a license of bank and specializes exclusively on investment services. In the USA investment banking services was separated from other banking activity u
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Brokerage Company
A Brokerage Company is a financial institution that has a license to provide intermediary services for a securities trading to the clients. Every retail client cannot by securities on stock exchange by himself be
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Publicly Owned Corporation
A publicly owned corporation is a company, which has its shares listed on the stock exchange. A publicly owned companies normally are medium or large scale corporations owned by a large number of investors (both
http://www.investingforbeginners.eu/publicly_owned_corporation
Secondary Markets
Secondary markets are markets, in which securities are traded, but not acquired directly from the issuers. This is why secondary markets differ from primary markets, where securities are bought directly from issu
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Private Markets
Private markets are opposite to public markets. Securities transactions in private markets are completed without help of stock exchange, but between two parties directly. If some company wants to sale its share i
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Penny Stocks
Penny stocks used to be described as stocks which price on stock exchange are lower than 1$ or 5$ (there is no officially approved norm). However, it is not very fair to judge a company for its share price on exc
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Investment Advisor
An investment advisor is a person or a company that is registered with the Securities and exchange Commission (SEC) and provides investment consultancies for remuneration. Investment advisor might provide consult
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Holding Company
Holding company is a type of a company which main activity is to invest in other companies. Holding as itself does not do any activity instead of managing their subsidiary companies and searching for new investme
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Investment Market
An investment market is a part of a financial market and represents all investments that were issued by corporations, governments or other entities. All the trades made by retail and institutional investors can b
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Direct Investments in Stocks
Direct investments in stocks are investments made without financial intermediaries (only theoretically). It means an investor buys stock directly from the company without intermediation of stock exchange or broke
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Corporate Investment
A corporate investment is investment made by one corporation into another. All corporations try to keep the growth of the business. Some do it only organically, while others also proceeds mergers & acquisitio
http://www.investingforbeginners.eu/corporate_investment
INVESTMENT MANAGEMENT HOW TO MANAGE YOURS INVESTMENTS PROPERLY
Investment management is a complete science and if you are expecting to become a professional investment manager in few hours you should get disappointed. However, there are several most important guidelines at i
http://www.investingforbeginners.eu/investment_management_how_to_manage_yours_investments_properly
Foreign Direct Investment
Foreign direct investment (FDI) traditionally was understood as investment that is made by foreign country in direct assets, for example factory, including land, building and machinery. When financial markets evo
http://www.investingforbeginners.eu/foreign_direct_investment
Margin Trading
Margin trading is trading in securities when part of the investment portfolio is financed by borrowed money (the other part by your own capital). For example, you have investment portfolio of value $20k, end you
http://www.investingforbeginners.eu/margin_trading
Hyperinflation
Hyperinflation is an economical situation when inflation is extremely high. Regularly it is a result of inflation spiral and some disasters (as war), and is very dangerous for the economy. Just try imagine your b
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P/E Ratio
P/E ratio is the most popular valuation multiple that is used for stock analysis. This ratio shows the price of the stock compared to its earnings. The multiple is so popular because of its simplicity and im
http://www.investingforbeginners.eu/p_e_ratio
P/B Ratio
P/B (P/Bv or price-to-book) ratio shows how expensive stock is compared to its books value. Company’s book value (also called equity, capital, shareholders funds etc.) is equal to company’s total assets les
http://www.investingforbeginners.eu/p_b_ratio
ADR (American Depository Receipt)
ADR (American Depository Receipt) is a form of international stock trading when a certificate (security) that might be traded in some US stock exchange in US dollars and represents shares of foreign company. The
http://www.investingforbeginners.eu/adr_american_depository_receipt
GDR (Global Depository Receipt)
GDR (Global Depository Receipt) is a security’s certificate that is traded on some European stock exchange and represents shares of foreign company. GDR normally is denominated in one of the main currencies
http://www.investingforbeginners.eu/gdr_global_depository_receipt
WACC
WACC (Weighted Average Capital Cost) shows cost of capital when capital is consisted of both equity and debt capital. So WACC simply calculates the weighted average between equity cost and debt cost.
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Market Making
Market making is a service provided by brokerage company to some listed company to increase liquidity in stock trading on stock exchange. Usually brokerage company gets paid for this service and has to maintain s
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Floating exchange Rate
Floating exchange rate is a regime of a currency which sets currency ratio naturally according to demand and supply in the market. Most of the biggest currencies (EUR, USD, GBP, JPY and others) are floating curre
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Pegged exchange Rate
Pegged (fixed) exchange rate is a regime of currency which value is related to some other stronger currency or a portfolio of currencies. Many smaller emerging countries have their currencies pegged to USD or to
http://www.investingforbeginners.eu/pegged_exchange_rate
Eurobonds
Eurobonds are bonds that are issued in other that home currency. It does not mean that Eurobonds have to be denominated in Euros. Actually, most of the Eurobonds that are issued in Europe are in denominated in US
http://www.investingforbeginners.eu/eurobonds
Financial Investment
Financial investment is any financial asset that should provide a return for investor. Financial asset is an asset that doesn’t have tangible form and has some financial obligations to its owner. All securi
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Trading Platform
Trading platform is an electronic tool provided by brokerage company or other financial intermediary that allows for investor to buy and sell stocks or other securities using his computer. In other words trading
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Hostile Takeover
A hostile takeover is an acquisition of a target company when its management doesn’t want the company to be overtaken by another corporation. The target of a hostile takeover may be only listed company whic
http://www.investingforbeginners.eu/hostile_takeover
Employee Stock Options
Employee stock options are options that are given to employees as part of motivation package and gives an opportunity for employees to acquire shares of the company in the future at a lower price. In their meanin
http://www.investingforbeginners.eu/employee_stock_options
Go Public
Go public means to get company’s shares listed on the stock exchange; the process also called floatation. To go public, company has to hire some investment banking firm that would help to execute an IPO (in
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Floatation
Floatation means going public through an IPO. If companies go public they have to get listed their shares on some stock exchange. Each company’s may choose any stock exchange, but normally smaller companies
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Market Value
The meaning of market value depends on the context for which the term is applied. Generally, market value is a price at which the buyer would agree to buy and seller would agree to sell the object without any ext
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Stock Option
A stock option is derivative financial instrument that gives the holder of the option the right to buy some particular stock at the predetermined strike price till the end of the option (or at the end, depending
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Outstanding Share Number
Outstanding share number is an important characteristic for the stock value of every stock company. This number represents all the issued shares in the company except the shares that are held by the company itsel
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Stock Price
A stock price is the last price of a share (stock) that was traded in a stock exchange for a particular stock. If stock exchange is closed at the moment, then the last stock price will be closing price for that s
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Stock Symbol
Stock symbol is symbol that is created for stocks by stock exchange to be easier recognizable for participants of the financial market. Stock symbol mostly is called as stock ticker.
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Stock Ticker
A stock ticker also called as a stock symbol actually is some code that is given for a p stock. Every stock that is listed on any stock exchange has some stock ticker by which is recognized. The stock ticker is n
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Trading Volume
Trading volume is an amount of securities that was traded in the market over some period. Usually volume is measured for a trading session (day), week or month but other periods also may be used. Higher number of
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Liquidity
(1) Market liquidity is a characteristic of a security or other traded investment that shows how easy it is convertible in to cash at a market value. Usually when investor decides to sell some investment and
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Broker
A broker is an intermediary that helps for retail or other investors buy their investments. Broker can be as a person (job title) or a brokerage company that acts as a financial intermediary between the seller an
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Ask Price
Ask price is the lowest price at which seller of a security is willing to sell indicated amount of securities. In stock exchange many investors leave their sell orders through their brokers and every sell order t
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Bid Price
Bid price is the highest price at which buyer is willing to buy specific amount of securities. Investors often leave their buy orders through their brokerage account while each buy order that stays in the exchang
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Real Estate Investment Management
Real estate investment management is a management of real estate portfolio. Real estate investments are different from standard investments (securities) and management of real estate investments differs from inve
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Equity Investors
Equity investors are investors that are investing in equity investments: listed stocks or similar ownership securities, stock funds, unlisted stock stakes or other half-equity strategies (equity loan, mezzanine f
http://www.investingforbeginners.eu/equity_investors
Private Equity Investor
Private equity investor is a corporation or individual that is investing in stakes of unlisted companies. The only different between equity investor and private equity investor is that the last one invests in unl
http://www.investingforbeginners.eu/private_equity_investor
Undervalued Stocks
Undervalued stocks are called those stocks that are believed to have higher target price than their stock price on the exchange. The higher is the difference the more stock is undervalued. If stock price in the m
http://www.investingforbeginners.eu/undervalued_stocks
Target Value
Target value is a calculated market value of the stock that should show the expected price of the stock. If target value is higher that stock price on the stock exchange, that should mean the analyst that made th
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Financial Statements
Financial statements are periodically by the companies issued reports that provide the most important financial information about company’s financial condition and success of activity. There
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Turnover Ratio
(1) Turnover ratio of mutual fund shows how quickly assets of the fund are changing. Actively managed investment funds have higher turnover ratio than passively managed funds, and normally turnover ratio is measu
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Investments in Blue Chip Stocks
Stock investments require high degree of financial knowledge and the understanding of market realities, but only if you are seeking for the most efficient result. Yet, the reality is that there are millions of pe
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Cost of Debt Calculation
The cost of debt is easy to calculate if they are required data. Actually, there are few methods to get the cost of debt, but some of those are more accurate some less. If you want that your result would be more
http://www.investingforbeginners.eu/cost_of_debt_calculation
Price to Free Cash Flow
Price to free cash flow (P/FCF) or EV/FCF ratio are ratios that compare company's price to its free cash flow. The main difference between those two ratios is that EV/FCF also includes the eff
http://www.investingforbeginners.eu/price_to_free_cash_flow
Free Cash Flow Yield
Free cash flow yield (FCF yield) show how much of cash that may be distributed to shareholders the business earns compared to its price on the stock exchange (including both: equity value and debt value or just e
http://www.investingforbeginners.eu/free_cash_flow_yield
Negotiable
(1) Negotiable means the description of the price when it is or can be flexible depending on other conditions. All sold goods or services may have negotiable or fixed prices, and it depends on the sales strategy
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Privately Held Corporation
Privately held corporation or closely held corporation is a company, which doesn’t have its shares listed on the stock exchange. If a corporation is closely held it not necessary means that it is small busi
http://www.investingforbeginners.eu/privately_held_corporation
