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Investing in Gold (I)
I will not be the first, and probably also will not be the last, who spoke about the Gold Rush that shakes down the world for the last few years. Just in this time it is a little different than in the days when desired f
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Investing in Gold (II)
The upper limit of the price is even more difficult. In our times gold is not founded in streams as was shown in the movies. Now gold is mined from the deep earth and separated from gold dust, metal ore or rock. In natur
http://www.investingforbeginners.eu/investing_in_gold_ii-p0-i5
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
What to Do With Investments in Current Turbulence?
The question is really not an easy one. The problem is that there is no left any good investments on this world. Let’s looks at the most topical investments classes: Stocks. Even before
http://www.investingforbeginners.eu/what_to_do_with_investments_in_current_turbulence-p0-i11
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
US Debt Relief
Let me give you few facts at first that we would now what are we talking about: The General government gross debt in percent of GDP in the United States was reported at 83.21 percent of GDP in 2009 (90% of GDP
http://www.investingforbeginners.eu/us_debt_relief-p0-i13
Where Are the Investment Markets Moving Now?
Some of the market participants call the current situation a “crisis” others are starting to be convinced that we are in a bear market. While others just don’t know how to call it. Well, I call
http://www.investingforbeginners.eu/where_are_the_investment_markets_moving_now-p0-i14
Stocks Riskier than Bonds?
It is so common that stocks are riskier investments than bonds; nobody is even considering this question. Would I doubt it? Of course not, stocks are stocks and bonds are bonds. But I would like to look at it fro
http://www.investingforbeginners.eu/stocks_riskier_than_bonds-p0-i15
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
Bond Investment: Government Bonds and Corporate Bonds
Corporate Bonds and Government Bonds Today I want to discuss another untraditional topic. However, this topic concerns the most traditional investments – bonds. Bonds been used for very long time a
http://www.investingforbeginners.eu/bond_investment_government_bonds_and_corporate_bonds-p0-i17
How ECB Is Affecting Investment Markets?
Today was announced very interesting news. The news is about the fact that ECB (European Central Banks) lends 489 billion of Euros to the banks. It is a really huge amount of capital that flows from ECB to the fi
http://www.investingforbeginners.eu/how_ecb_is_affecting_investment_markets-p0-i18
Problems in Greece: Is It Going to End?
Greece sounds like a curse for all investors and all other participants of the financial market. Yes, it is a small country compared to the global or European economy by the size of a GDP or other economical indi
http://www.investingforbeginners.eu/problems_in_greece_is_it_going_to_end-p0-i19
How to Beat the Stock Market
Investing is good, but the real challenge for every portfolio manager is to beat the stock market, or beat the market. Of course the term ‘market’ is not very exact. In reality to beat the market is t
http://www.investingforbeginners.eu/how_to_beat_the_stock_market-p0-i20
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
European Dividend Stocks
Before getting to the exact stocks, at first, please let me explain why I have chosen European dividend stocks as a topic. For the beginning, lets solve the question why dividend stocks. The true is that many inv
http://www.investingforbeginners.eu/european_dividend_stocks-p0-i22
What means long term in investing?
When I talk to non-professional investors, I often get surprised on their interpretation of ‘long-term investment’. Of course, everyone wants to enjoy their lives and to do it fast, while not many are ready t
http://www.investingforbeginners.eu/what_means_long_term_in_investing-p0-i23
Is the Bubble of Commodities Going Down?
It can be said that commodity bubble already went down. The prices of the most commodities have slumped significantly during several last months. But was there really a bubble? Yes, the prices have
http://www.investingforbeginners.eu/is_the_bubble_of_commodities_going_down-p0-i24
Putting Investment Indicators from Economy to Good Use
Putting investment indicators from economy to good use People in various professions – journalists, stock market traders, businessmen, or individuals looking at investing in property – usually refer to inv
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The best investment is education? Go figure
Many people find the idea of investing on their own business and making oodles of money out of it quite cool, little realizing it takes lots of hard work and patience to succeed, and then there’s the perenn
http://www.investingforbeginners.eu/the_best_investment_is_education_go_figure-p0-i30
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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Sortino Ratio
Sortino ratio is a financial ratio that is used to measure the performance of investment portfolio and is very similar to a Sharpe ratio. The main difference between Sortino ratio and Sharpe ratio is that Sharpe
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Investing for Beginner
Many people are prepared to invest, and understand that investing would help to achieve many important goals of life.However, most of those people do not even start to invest, because do not know exactly how to do that,
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Investing 10
read the Top 10 most important things that you should do and 10 things that you should do not during investment process. Those are the most important investing rules and you have to know and remember them. Of co
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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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Investing for Beginners
Investing can seem a hard thing to do for beginners. But investing for beginners isn‘t any harder than other things in the beginning. Many processes can look difficult until you don‘t know what is hid
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Investment in Bonds
Debt (fixed income) securities Bonds are fixed income securities and the principle of them is simple - the issuer of the bonds attracts the money from the investors and commits to pay back for the investors until end of
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Asset Management
Definition Asset management which also is called as investment management has many similarities to finance management but investment management is more specific and narrow area of finance. Invest
http://www.investingforbeginners.eu/asset_management
Non-Financial Investments
When talks go about investing and investments everybody focuses on financial investments forgetting that spectrum of investments is much broader. Investment in non-financial investments is also popular, especiall
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Investing in Commodities Directly
Investment in Oil, Gold, Silver Directly Commodities has been already described as financial investment. It was assigned to financial investments because investors are investing in commodities not directly but w
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Investment Objectives for Beginners
The full investment objectives for beginners are very individual parameters. They were already mentioned briefly in article about benefits of investment. However, the basic investment objective is one - to make capital w
http://www.investingforbeginners.eu/investment_objectives_for_beginners
Investment Manager
Investment management or finance management are particularly a lot of attention and responsibility requiring areas. It does not matter whether you manage your money whether corporate funds, in any case, it is important t
http://www.investingforbeginners.eu/investment_manager
Investment Book:
Investing for Beginners Exposed: Or What Investment Consultants Hide from You Rokas Lukosius (Author of the book and this website) No matter whether you are a seasoned inv
http://www.investingforbeginners.eu/investment_book
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
http://www.investingforbeginners.eu/investment_in_short_etf
Investment Guidelines
Investment guidelines – is an investment practice that is recommended to achieve set goals. Investment goals may be very various for different investors, but still there are some common guidelines like buy
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Investing Definition
Investing definition is similar to investment definition. Shortly, it is an acquisition of asset made on purpose to profit from it over time. Investing is a process that may last from very short period a
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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
http://www.investingforbeginners.eu/otc_market
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
http://www.investingforbeginners.eu/stock_market
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
http://www.investingforbeginners.eu/bond_market
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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Share
A share is a unit of firm’s ownership, which represents the rights and obligations of the shareholder (owner of the shares). If investor owns all shares of the company he is a complete owner, but if he
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Share Investor
A share investor is an investor who invests in shares (stocks) but not the other investments. If investor invests in different asset classes he is a regular investor. If investor is specializing in shares he must
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Common Shares (Stock)
Common stocks (shares) are ordinary shares - securities that represent a proportional ownership of the firm including all the material (like dividends) and non-material (voting) rights. Common shares are the trad
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Reverse Stock Split
Reverse stock split is a merge of existing company’s shares increasing its face value. For several owned shares an investor gets one share depending on reverse split ratio, when total outstanding shares num
http://www.investingforbeginners.eu/reverse_stock_split
Stock Book Value
Stock book value is a book value of one share. It is calculated dividing shareholders equity by share number and gives some very approximate investing guidance about the value of the stock. It is popular to look
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Market Timing
Market timing is investor's actions when investments are switched between asset classes and may be a part of investment strategy. For example, if investor sees that stocks are very high and economical downturn is
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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
Equity Fund
An equity fund is a mutual fund that is investing in equity (stocks). Equity fund can be actively managed, index fund, listed index fund (ETF) and can invest in some specific sectors or regions, or can invest glo
http://www.investingforbeginners.eu/equity_fund
Mutual Fund
A mutual fund is a collective investment vehicle that is consisted of fund units, which are sold for retail investors. Practically, mutual fund is a large investment portfolio, in which can take a part even small
http://www.investingforbeginners.eu/mutual_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
http://www.investingforbeginners.eu/derivatives
Large Cap Stocks
Large cap stocks are stocks of those companies that have the highest market capitalization. All the stocks can be classified to large cap, mid cap and small cap (if ignoring modern classifications that include mo
http://www.investingforbeginners.eu/large_cap_stocks
Small Cap Stocks
Small cap stocks are stocks of lower market capitalization. All stocks may be classified to large cap, mid cap and small cap (if ignoring mega, nano and other modern classification caps). There is no united class
http://www.investingforbeginners.eu/small_cap_stocks
Blue Chip Stocks
Blue chip stocks are stocks of the biggest large cap companies. Blue chip stocks usually are safer than average investment in stocks, have stable cash flow and pay stable dividends according dividend policy. Blue
http://www.investingforbeginners.eu/blue_chip_stocks
Commercial Bank
A commercial bank also commonly called just a bank is financial institution that has a license to provide financial services. The principal services provided by banks: Taking the deposits
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Insurance Company
An insurance company may provide insurance services of two different directions: life insurance and non-life insurance. Non-life insurance is not very closely related (if to mention own insurance company’s
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Junk Bonds
Junk bonds are bonds that have a speculative-grade credit rating, which is BB or lower. Junk bonds are riskier but they have higher yields. The spread between junk bond yield and safe bond yield (c
http://www.investingforbeginners.eu/junk_bonds
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
http://www.investingforbeginners.eu/penny_stocks
Growth Stocks
Growth stocks are stocks of companies which earnings per share grow faster than average on the market. Such is theory, but if look in practical side, earnings grow faster most of the times only when economical cy
http://www.investingforbeginners.eu/growth_stocks
Value Stocks
Value stocks are opposite to growth stocks and attract investors not by growth perspectives but by stable cash and dividend flow. Market ratios (P/E, P/B and other) of value stocks are low and together with high
http://www.investingforbeginners.eu/value_stocks
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
http://www.investingforbeginners.eu/holding_company
Operating Leverage
An operating leverage is a company’s EBIT (earnings before taxes and financial operations) sensitivity to changes of sales. As the sensitivity is measured to operating income (close to EBIT), the
http://www.investingforbeginners.eu/operating_leverage
Investment Strategies
Investment (investing) strategy – often discussed by both amateur and professional investors, but in fact very rarely encountered. Amateurs usually imagine that they has an investment strategy only after th
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Financial Leverage
A financial leverage is a use of borrowed money to achieve more efficient capital structure. A borrowed capital is cheaper than equity capital most of the times. So usage of loaned money makes weighted average ca
http://www.investingforbeginners.eu/financial_leverage
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 Fees
Investment management fees (fees that are paid straight to investment manager) basically are one of these types: Performance based fee. Performance based fee is calculated according to increase of inve
http://www.investingforbeginners.eu/investment_management_fees
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
Investment Management Books
There are many books on the world that teaches how to manage investments. These are few recommendations for you: Investing for Beginner Exposed, R. Lukosius. Amazing book for beginners or advanced investors wh
http://www.investingforbeginners.eu/investment_management_books
Investment Risk Management
There are several main methods of investment risk management: Diversification. Diversification is the easiest and most of the times the cheapest way to reduce risk level of the investment portfol
http://www.investingforbeginners.eu/investment_risk_management
Return on Investment
Return on investment (ROI) is a percentage that shows profitability of an investment or investment portfolio. Return on investment calculation: CALCULATION: Return on investment = net in
http://www.investingforbeginners.eu/return_on_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
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
PEG Ratio
Price-to-Earnings to Growth Ratio PEG ratio is quiet popular among retail investors, however professionals do not use it often because of this ratio subjectivity. PEG ratio shows how expensive is stock compared
http://www.investingforbeginners.eu/peg_ratio
P/NAV Ratio
Price to Net Asset Value P/NAV ratio shows how expensive share is compared to its NAV (net asset value). This ratio is very similar to P/B ratio but in this case market values (not book values) are used. M
http://www.investingforbeginners.eu/p_nav_ratio
Stock Valuation
Stock valuation is very important part of investing in stocks, and this part is the most time consuming and knowledge requiring. Stock valuation is a necessary and main step at stock picking process. The only way
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DCF Valuation
Discounted Cash Flow Analysis DCF valuation might be applied to any asset that generates positive free cash flow or is expected to generate that cash flow in the future. DCF valuation might be directly applied t
http://www.investingforbeginners.eu/dcf_valuation
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
Discounted Cash Flow
Discounted cash flow (DCF) is forecasted net cash flow of the company or other asset that is recalculated (discounted) to its current value. Discounted cash flow is important for investment assessing and mostly i
http://www.investingforbeginners.eu/discounted_cash_flow
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.
http://www.investingforbeginners.eu/wacc
Hedge Funds
Hedge funds are investment funds that use financial leverage and derivatives to achieve better investment results. The name of hedge fund came from hedging, which originally is a defensive investment strategy, bu
http://www.investingforbeginners.eu/hedge_funds
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
http://www.investingforbeginners.eu/market_making
Days Sales Outstanding
Days sales outstanding (DSO) shows how quickly company collect its money from sales. Usually company doesn’t get paid immediately; depending on business and distributors network such period may be from seve
http://www.investingforbeginners.eu/days_sales_outstanding
EBITDA Margin
EBITDA margin is a profitability margin that shows how much of EBITDA earns company’s revenue relatively. The EBITDA margin is the best for profitability comparison of the companies if you want to measure e
http://www.investingforbeginners.eu/ebitda_margin
Profit Margin
Profit margin normally refers to net profit margin, which is net profit divided by sales. But one should remember that profit might be of different kinds (net profit, pretax profit, EBIT, EBITDA and gross profit)
http://www.investingforbeginners.eu/profit_margin
ROE
ROE (Return on Equity) shows profitability of company’s book value. Company’s book value (equity) is equal to company’s assets less liabilities, and ROE is usually higher if company ha
http://www.investingforbeginners.eu/roe
ROA
ROA (Return on Assets) shows what profits are earned by company’s assets. Of course, assets alone usually do not earn the profit, because most of the times profit is the result of know-how and hard work of
http://www.investingforbeginners.eu/roa
Psychology of Buying on Margin: Is it worth?
Buying on Margin Costs of Buying Stocks on Margin Margin Call The Pros and Cons of Buying on Margin Psychology of Buying on Margin: Is it worth? For the conclusion I would like to say that bu
http://www.investingforbeginners.eu/psychology_of_buying_on_margin_is_it_worth
Costs of Buying Stocks on Margin
Buying on Margin Costs of Buying Stocks on Margin Margin Call The Pros and Cons Psychology: Is it worth? We won’t talk about the possible losses in here. The goal of this paragraph is t
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Equity Trading
Equity trading is a process when equities are bought and sold through a trading platform. Equity trading is a synonym for trading stocks as equity in investment field is represented by stocks. Investing in equity
http://www.investingforbeginners.eu/equity_trading
Risk Tolerance
Risk tolerance is a characteristic that describes the investor and his ability to withstand losses from investments. The higher risk tolerance of investor the more losses he/she may handle. Investm
http://www.investingforbeginners.eu/risk_tolerance
Day Trader
A day trader is a speculator that trades in stocks, currencies or some other securities within a very short period. Most of the trades are made by the trading in one day period. Day trader is a pure speculator, e
http://www.investingforbeginners.eu/day_trader
Stock Trader
A stock trader is a speculator that is trying to make profits from quick changes in value of stocks or other securities that he trades. Stock trader have few differences from normal investor and the main differen
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Investment Bubble
Investment bubble is a jump in price of particular investment when price starts increasing faster and faster as long as the price reaches its peak and falls down to a similar to previous level, if there are no ot
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Investment Websites
Investment websites are websites that provide useful information about investing and investments or websites that allow you to open a trading platform and trade some investments online. There are m
http://www.investingforbeginners.eu/investment_websites
Money Investing
Money investing is a hard task for beginners at investing. However, it is not a rocket science and can be learned by anyone who is really attracted to finances and have enough of time for it. Money is equal to ca
http://www.investingforbeginners.eu/money_investing
Valuation Consultants
Valuation consultants are professionals that know everything about the value of an asset or business. The real market value consists of many parts and all of them may have critical importance to the value. Only e
http://www.investingforbeginners.eu/valuation_consultants
Good Stocks
Good stocks are those stocks that meet’s investors risk tolerance and investment strategy. Also good stocks should have upside potential to increase in value in the future. If stocks are already priced high
http://www.investingforbeginners.eu/good_stocks
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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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
http://www.investingforbeginners.eu/ask_price
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
http://www.investingforbeginners.eu/bid_price
Bid-Ask Spread
Bid-ask spread is the difference between the bid price and the ask price, or in other words it is a difference between the best offered price of a seller and the best given price by a buyer for a particular secur
http://www.investingforbeginners.eu/bidask_spread
Investor Education
Investor education is very important task to make investors achieve better results. It is hard to become the best specialist of investment management in short time but every investor can learn to avoid the main m
http://www.investingforbeginners.eu/investor_education
Investors ABC
Investor’s ABC includes all the main topics that are necessary for every investor to avoid the most popular failures in investing and to achieve good investment results. If you want to be rea
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Real Estate Investors
Real estate investors are individuals or investment companies that are investing in real estate (property). There few main types of real estate investors: • Real estate developers are investors that
http://www.investingforbeginners.eu/real_estate_investors
Income Statement
Income statement (also called statement of operations, profit and loss statement, P&L or other) is one of three main financial statements reported by the companies periodically. Income statement exposes compa
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Cash Flow Statement
Cash flow statement is one of the three main financial statements (others are income statement and balance sheet). If income statement exposes income that was received according accounting standards, cash flow st
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Net Income
Net income (net profit) is a financial indicator of the company that shows the real profitability of the business in accordance to its capital structure. Net income is equal to all revenue and gains less all expe
http://www.investingforbeginners.eu/net_income
Operating Margin
Operating margin is a profitability percentage that shows what company’s profit margin is before it pays interests and taxes. Operating margin simply ignores capital structure (because ignores financial act
http://www.investingforbeginners.eu/operating_margin
Financial Planning
Financial planning is a type of financial analysis of which goal is to predict financial situation of the object in the future. There are two main trends where financial planning can be applied: in corporate fina
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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
http://www.investingforbeginners.eu/turnover_ratio
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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Stocks and Commodities
You may ask how stocks and commodities related are. And the answer is simple: everything is related and especially in financial markets. Normally, if some of the main asset class (as stocks) looses or gains
http://www.investingforbeginners.eu/stocks_and_commodities
Cost of Debt
Cost of debt shows what the capital cost of the company for its debt capital is. Basically company’s capital consists of two parts: debt capital and equity capital. (A mixed capital like mezzanine financing
http://www.investingforbeginners.eu/cost_of_debt
Cost of Debt Formula
Cost of debt formula Theoretical cost of debt formula: Before tax cost of debt = Risk free rate + Credit risk premium After tax cost of debt = (Risk free rate + Credit risk premiu
http://www.investingforbeginners.eu/cost_of_debt_formula
Before Tax Cost of Debt
Before tax cost of debt (or pretax cost of debt) usually is a standard cost of debt. When you determine the interest rate paid by the company for its debt, it is equal to debt cost before tax. However, interest e
http://www.investingforbeginners.eu/before_tax_cost_of_debt
After Tax Cost of Debt
There are two types of the debt cost: ‘before tax cost of debt’ and after tax cost of debt. The only difference between those is that the first one is equal to the interest rate paid by company while
http://www.investingforbeginners.eu/after_tax_cost_of_debt
Minority Interest
Minority interest (non-controlling interest) is a part of net income or of an equity that does not belong to the shareholders of the main group. Basically there are two types of the minority interest:
http://www.investingforbeginners.eu/minority_interest
Asset Performance
Asset performance is a return of an asset over some period. Usually performance is measured on annual basis. But basically performance of any asset depends on its riskiness and the period (most of the stocks and
http://www.investingforbeginners.eu/asset_performance
Profit Taking
Profit taking is the selling of stocks or other investments after sharp rise in prices. Investors are say that they ‘took profit’ when they sold their stocks after good rise when they seceded with sto
http://www.investingforbeginners.eu/profit_taking
Financial Ratios
Financial ratios are ratios that are used in financial analysis or in other words that are using financial data of a company. Such financial data usually is found in financial statements (income statement, balanc
http://www.investingforbeginners.eu/financial_ratios
Net Interest Income
Net interest income is an indicator that measures lending business performance of a financial institution. Basically, it is equal to interest income from loans and other assets less interest expenses for deposits
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Interest Rate Spread
‘Interest rate spread’ is a very important measure for banks and other financial institutions. As money lending is the core business for most of the banks, it is very important that this operational s
http://www.investingforbeginners.eu/interest_rate_spread
Net Interest Margin
Net interest margin shows the profitability of the lending business for a bank or other financial institution. Lending business is the core business for most of the banks, and the profitability of this operational segmen
http://www.investingforbeginners.eu/net_interest_margin
Cash Turnover Ratio
Cash turnover ratio compares company’s sales to its cash and measures how effectively company is using cash assets. However, this financial ratio now is a bit outworn and is not very meaningful for most of
http://www.investingforbeginners.eu/cash_turnover_ratio
Internal Rate of Return
An internal rate of return (IRR) is a ratio used very often to measure a profitability of some investment project. IRR is determined as a discount rate when NPV of the project is equal to zero. If IRR is higher t
http://www.investingforbeginners.eu/internal_rate_of_return
