Search results
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
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
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
Investments
(Are you looking for investment definition?) Investments are instruments that allow us to receive a higher amount of money than was spent. If someone spends 10 euros or dollars and he knows that he will receive
http://www.investingforbeginners.eu/investments
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
http://www.investingforbeginners.eu/investment_in_stocks
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
http://www.investingforbeginners.eu/investment_in_bonds
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
Investment Strategy by Age
It is very popular to allocate asset classes in investment portfolio according to investor’s age. And it has some reasonable justification: when investor’s age is changing – his risk tolerance a
http://www.investingforbeginners.eu/investment_strategy_by_age
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
Preferred Stock (Preferred Shares)
A preferred stock or preferred shares are other type of shares than common shares. They are called preferred only because of priority over common shares in case of a firm’s termination.
http://www.investingforbeginners.eu/preferred_stock_preferred_shares
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
http://www.investingforbeginners.eu/stock_exchange
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
Investment Banking Services
Investment banking services are corporate finance services provided by investment banks. Investment banking includes such services like capital rising, securities issuing, IPO’s running, mergers and acquisitions
http://www.investingforbeginners.eu/investment_banking_services
Money Market
A money market is the market, in which money market investments are traded. Such money market investments can be deposits certificates, bills or other short term high grade Fixed income securities.
http://www.investingforbeginners.eu/money_market
Risk-Free Interest Rate
A risk-free interest rate is rate of interests that would be paid by Fixed income securities that contains no risk at all. For a very long time short-term US Treasury securities was used to d
http://www.investingforbeginners.eu/riskfree_interest_rate
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 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
Inflation
Inflation is a percent that reflects a price increase of goods and services portfolio. When inflation occurs, money is losing its purchasing power. For example, if inflation would keep at 8% for 9 years (it would
http://www.investingforbeginners.eu/inflation
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
http://www.investingforbeginners.eu/hyperinflation
Deflation
Deflation is a process opposite to inflation and occurs when inflation is negative. Deflation means that prices of goods and services are decreasing. Such situation when prices are decreasing is not very common i
http://www.investingforbeginners.eu/deflation
Stagflation
Stagflation is an economical situation, when high inflation and stagnation of the economy come together. It is very difficult situation, because it not allows using monetary politics efficiently to revitalize the
http://www.investingforbeginners.eu/stagflation
EV/EBIT Ratio
EBIT Multiple EV/EBIT ratio is identical to EV/EBITDA ratio. The only difference is that EBIT instead of EBITDA is used. EBITDA differs from EBIT at depreciation and amortization (DA). So EBITDA i
http://www.investingforbeginners.eu/ev_ebit_ratio
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
EBITDA Coverage Ratio
EBITDA coverage ratio (also called EBITDA to Interest Coverage Ratio) shows company’s capability to deal with its financial leverage. If this ratio is too low, that may show company is in trouble and may ha
http://www.investingforbeginners.eu/ebitda_coverage_ratio
Acquisition
An acquisition is a takeover of one corporation by another when shares are bought and control of management is overtaken. Acquisition is an M&A deal and as targets for acquisition usually become some competin
http://www.investingforbeginners.eu/acquisition
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
High Return Investments
High-return investments (or high-yield investments) are investments that can provide the higher return than average investments, and of course such investments are riskier. The reality is that people have differe
http://www.investingforbeginners.eu/high_return_investments
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
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
Asset Turnover Ratio
Asset turnover ratio compares company’s sales and assets in order to identify the efficiency of assets used in the business. In simple words, it shows show much of sales are generated by company’s ass
http://www.investingforbeginners.eu/asset_turnover_ratio
Return on Invested Capital
Return on invested capital (ROIC) or also called return on capital is a financial ratio employed to measure nominal company’s return that is earned by capital invested in operating asset. Basically return o
http://www.investingforbeginners.eu/return_on_invested_capital
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
Fixed Asset Turnover
Fixed asset turnover ratio is a financial ratio that measures how much of sales are created by company’s property, plant and equipment. The ‘higher asset turnover’ is the better, because it mean
http://www.investingforbeginners.eu/fixed_asset_turnover
Capital Employed
Capital employed is a value of capital investments in a company. Basically, the capital of each company can be classified in these types of capital: Equity capital Debt capital Working capital
http://www.investingforbeginners.eu/capital_employed
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
http://www.investingforbeginners.eu/negotiable
Leverage
Leverage definition In finance leverage means usage of debt capital in addition to the equity capital in order to increase the profit. Increase in leverage is understood as increase in riskiness and volatility.
http://www.investingforbeginners.eu/leverage
