Investing for Beginners .EU, investing

investingforbeginners.eu I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.
Albert Einstein

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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
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Investing in Uncertain Period
Investing always has some uncertainty, but there are some situations when rise even more questions than usually. The current situation is just like one of those uncertain periods. When the economic cycle so inconclusive,
http://www.investingforbeginners.eu/investing_in_uncertain_period-p0-i7

Investing in Africa
Investing in Africa even sounds a little extreme. But investing in Africa not only sound extremely - it is like this in fact. If we would distinguish developed and emerging markets, then most of the Africa’s countr
http://www.investingforbeginners.eu/investing_in_africa-p0-i8

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

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
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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
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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
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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
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Foundation of the Europe’s 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.   
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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

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
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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
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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
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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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Investment psychology gains momentum in contemporary business world
  Many individuals make rational investment decisions, but others are swayed by their emotions, serving as clear-cut illustration of just how the mindset and behavior can affect finances, and this is an important a
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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,
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BRIC Countries
  BRIC countries are the largest emerging economies over the world. The first letters of every country make a name of B R I C and those countries are: Brazil (population - 192m) Russia (population - 143m) Indi
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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
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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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Investing
  Investing - what is that exactly? Probably you have heard many different definitions of investing. However, what is the essence of it? The essence is very simple: investing - a present sacrifice for the future.If
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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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Investing for Retirement
Investing for retirement may be one of the most reasonable investment objectives. Sometimes, people invest so they can afford expensive things that they otherwise could not afford without investing. For example
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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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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 Commodities
Investment in Oil, gold, Silver, Copper, Wheat  Commodities (raw materials) are indeed a tangible asset class, but it can be also assigned to financial investments, because in current days most investments in commo
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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
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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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Direct Investment
Investment in Tangible Assets   Direct investment are very wide issue to study, but it‘s not so close to traditional investing. Direct investments are more related with business development and would depend
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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
http://www.investingforbeginners.eu/investment_in_options

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
http://www.investingforbeginners.eu/investment_in_index_funds

Investment in Fund of Funds
  If each normal investment fund invests in underlying assets directly, the fund of funds is investing solely in other funds that invest directly in shares, bonds or other assets.If such funds distributors would ar
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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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Strategy Investment
  Strategy investment refers to an investment strategy, which should be wise chosen according to investing person character and market environment. Investing always has to be strategic and foresee possible future e
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Investment Strategy in Growth stocks
  Investing in the rapidly growing companies has always attracted the attention of all worlds’ investors, in particular, at the market rise. The reason why investing in growth stocks - so popular is very simp
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Value Investing
Investment strategy - Value Investing   Investing in value stocks is fundamentally different from investing in the growth companies. stocks of growth company will rise up impressively during bull market when value
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Investing in Unprofitable Companies
Investment Strategy - Unprofitable Companies Investing in companies that are still unprofitable is more difficult than investing in profitable companies, but may also be very successful. If the company will turn around
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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
http://www.investingforbeginners.eu/investing_in_funds

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

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 Securities
  Investment securities may have different understandings as a term, but most commonly investment securities are securities held on investment purpose to get a return from invested capital over mid-long term. 
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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
http://www.investingforbeginners.eu/investment_in_normal_etf

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 Techniques
  Investment techniques are some combination of investment strategies and investment tactics. Investment techniques usually are middle term oriented procedures that help to reach some predetermined result. It may i
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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
http://www.investingforbeginners.eu/financial_market

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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Bull Market
  A bull market is a market trend when investment market is increasing over longer period and is believed to increase in the future. Bull market is a well known term among investors and is opposite to bear mar
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Bear Market
  A bear market is a market trend when investment market is decreasing over longer period and is believed to decrease in the future. Bear market is a well known term in the investment world and is opposite to bull
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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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Shareholder
  A shareholder (stockholder) is a individual or company that owns some shares of stock in a corporation. Technically, every investor who is investing in shares is a shareholder for as long as he holds those s
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Investor
  An investor is an individual or corporate unit that invests in any class of investments on purpose to earn some return from invested capital. There may be more criteria to distinguish very small investments
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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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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.   
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stock Split
  A stock split is a divide of existing company’s shares decreasing its face value. For every owned share an investor gets a several (or one) additional shares depending on split ratio, and the total out
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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
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Book Value of Share
  A book value of share is calculated dividing all company’s book value (less preferred equity) by its common share number. For example, if company’s book value is 1,000,000 USD and issued share nu
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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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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
http://www.investingforbeginners.eu/stock_market_crash

Dividends
  Dividends are capital payments from companies to theirs shareholders. Normally dividends are paid by cash and usually but necessary once a year. Every company’s common share of the same class gets equal div
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Dividend Yield
  A dividend yield is a ratio that shows how much investor gets dividends from the stock compared to its price. It is calculated dividing dividend per share by the share price.    Dividend yield is impo
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Dividend Payout Ratio
Payout ratio is a percentage that shows a portion of company’s income distributed as dividends.    Formula Dividend payout ratio = common shares dividends / net income   *For the sam
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Dividend stocks
  Dividend stocks are called stocks that have high dividend yield and high dividend payout ratio. Normal dividend stocks should have stable 6%-10% dividend yield and possible 60-100% dividend payout ratio. High div
http://www.investingforbeginners.eu/dividend_stocks

Ex-Dividend Date
  Ex-dividend date is a first day when investor does no longer receive dividends paid by company’s shares. This is important factor because the period of shares' settlement after transacti
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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
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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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Investment Tactics
  Investment tactics are the rules for investment actions that help to react on market conditions and achieve more efficient results. Investment tactics deal with lower scale questions than investment strategy, whi
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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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Investment Portfolio
  An investment portfolio is a composition of different investments made on purpose to achieve the highest return at predetermined risk level. Investment portfolio can include all kinds of investments: stocks,
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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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Buying on Margin
  Buying on Margin Costs of Buying stocks on Margin Margin Call The Pros and Cons Psychology: Is it worth?     Buying on margin gets popularity during every strong bull market. Unfortunately, it be
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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
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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
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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
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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
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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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Institutional Investment
  Institutional investment is an investment that is made by an organization/institution. Usually, institutional investments are large scale and has important role in financial markets. Most institutional investment
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Institutional Investor
  An institutional investor is an investor that is a corporation/institution. Institutional investors have high impact to investment markets and sometimes decisions of most known institutional investment manag
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Retail Investor
  A retail investor is a small investor, which normally is an individual. Most of the investors in financial markets are retail investors, but retail investor makes an investments in much smaller amounts than
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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
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Investment Report
  An investment report is a for investors prepared document on purpose to provide useful and objective information that would help to make an investment decision.     Investment report may have many for
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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
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Capital Markets
  Capital markets are the markets, in which stocks and medium to long term bonds are traded. Could be said that capital markets include stock markets and bond markets and are a part of financial markets.   C
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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
http://www.investingforbeginners.eu/private_markets

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

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
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Enterprise Value
  Enterprise value (EV) is a financial measure that is used to reflect the magnitude of the business. If market capitalization shows only the value of shareholders equity, enterprise value includes both: equity val
http://www.investingforbeginners.eu/enterprise_value

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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Cheap stocks
  Cheap stocks are such stocks that are traded at low valuation multiples. For example, if you see a telecom or utility company of which P/E is equal to 6 and EV/EBITDA is equal to 3, you may say it is a cheap stoc
http://www.investingforbeginners.eu/cheap_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
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Dividend Growth stocks
  Dividend growth stocks are stocks that are hard to find in reality. Because the stock must be either value stock (large dividend payments) either growth stock (small dividend payments) or either something in betw
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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

Value Penny stocks
  Value penny stocks are stocks that have characteristics of both: value stock and penny stock. Investment in value penny stocks isn’t very popular, because stock investors who seek for safety invest in norma
http://www.investingforbeginners.eu/value_penny_stocks

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
http://www.investingforbeginners.eu/investment_market

Preemptive Right
  A preemptive right is a right of company’s shareholders to acquire more shares in case of new share issue proportionally. Usually such right is described in shareholder’s agreement.   Such righ
http://www.investingforbeginners.eu/preemptive_right

Diversifiable Risk
  A diversifiable risk is the risk that can be reduced by increasing number of investments in the investment portfolio. For example, company’s risk can easy diversifiable by choosing more companies. Even coun
http://www.investingforbeginners.eu/diversifiable_risk

Market Risk
  A market risk is a systematical risk that cannot be diversified. There are some risk factors that can make effect on the whole market: economical cycles, nature disasters, wars; and such are not diversifiable ris
http://www.investingforbeginners.eu/market_risk

Corporate Finance
  Corporate finance is a niche of finance that deals with financial questions related to corporations.    The main goal of every company should be stockholders wealth maximization, but to achieve that m
http://www.investingforbeginners.eu/corporate_finance

Investment Growth
  An investment growth may have two different meanings: Most probable it refers to growth investing. It is an investment strategy or part of it, which concentrates on investments in stocks that grow faster than
http://www.investingforbeginners.eu/investment_growth

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
http://www.investingforbeginners.eu/direct_investments_in_stocks

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

Investment Performance Measurement
  Many investors are happy about investment managers until the stock market is growing, but when the decline starts investment managers gets only the worst words about their job. However, this is wrong attitud
http://www.investingforbeginners.eu/investment_performance_measurement

Quantitative Investment Management
  Quantitative investment management says, “Don’t worry about investment management, and let to do the job for the computer”.  It is a completely different approach compared to ‘value d
http://www.investingforbeginners.eu/quantitative_investment_management

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

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

Investment Finance
  Investment finance is finance that is related to investment. Investment market is a part of financial market, so we can say that investment is a part of finance.    Investment finance specializes on f
http://www.investingforbeginners.eu/investment_finance

Repo
  Repo (repurchase agreement) is a contract between the investor, who borrows money, and the lender who lends money and takes (buys and resells) securities for collateral, in case if the investor will default to re
http://www.investingforbeginners.eu/repo

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

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

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
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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

Valuation Multiples
  Valuation multiples are stock ratios that include in the calculation share price and show whether stock is cheap or expensive compared to similar stocks.     Valuation multiples (or just multiples) ar
http://www.investingforbeginners.eu/valuation_multiples

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/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

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

EV/S Ratio
Enterprise Value to Sales Ratio   EV/S ratio shows how expensive firm is compared to its sales. This multiple is important when company is unprofitable or profits margins are very low and turnaround is expected in
http://www.investingforbeginners.eu/ev_s_ratio

P/S Ratio
Price to Sales Ratio   P/S ratio shows the price of the stock compared to its sales. This ratio historically was quiet popular, but now EV/S ratio, which is more correct methodically, is used.   
http://www.investingforbeginners.eu/p_s_ratio

EV/EBITDA Ratio
EBITDA Multiple   EV/EBITDA ratio shows how expensive firm is compared to its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). EV to EBITDA multiple is mostly used by professionals because
http://www.investingforbeginners.eu/ev_ebitda_ratio

Cost of Equity
  Cost of equity is the rate of return that is required by equity owners from their investment. Of course, requirements of the shareholders have to be real and meet market conditions as well. Basically cost of equi
http://www.investingforbeginners.eu/cost_of_equity

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
http://www.investingforbeginners.eu/stock_valuation

Relative Valuation
Comparative analysis    Relative valuation is stock valuation method that gained its popularity because of simplicity and practical importance. The key principle of relative valuation is about valuation multi
http://www.investingforbeginners.eu/relative_valuation

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

Replacement Cost Valuation
  Replacement cost valuation method is not very popular at stock valuation. Most of the investors are picking stocks with help of relative valuation or DCF valuation. Only when those two methods aren’t possib
http://www.investingforbeginners.eu/replacement_cost_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

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

Depository Receipts
  Depository receipts are certificates that makes easier to invest in foreign stocks. Depository receipts lowers administration costs for foreign investment and makes foreign investments more trustful for local inv
http://www.investingforbeginners.eu/depository_receipts

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

CAPM
  CAPM (Capital Asset Pricing Model) is method widely used for equity cost calculation. Equity cost should show the return that investor should expect/seek from an investment that contains specific level of risk.&n
http://www.investingforbeginners.eu/capm

Earnings Per Share
  Earnings per share (EPS) shows how much of net earnings are allocated to one common share. EPS might give some guidance about the value of the share for shareholder. Share price compared to EPS is equal to P/E ra
http://www.investingforbeginners.eu/earnings_per_share

Free Float
  Free float is a proportion of company’s shares that are really traded in the market. Normally, free float is lower than the total outstanding number of shares, because most of the largest shareholders do no
http://www.investingforbeginners.eu/free_float

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

Conflict of Interest
  A conflict of interest is very sensitive problem at financial intermediaries when interests of different groups (owners, investors, employees or other) cross each other. All employees in investment market should
http://www.investingforbeginners.eu/conflict_of_interest

Target Capital Structure
  Target capital structure is a mix of equity and debt capital that maximizes value of the shares. Target capital structure may be achieved when WACC (Weighted Average Capital Cost) is minimal. If proportion of equ
http://www.investingforbeginners.eu/target_capital_structure

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

Margin Call
  Buying on Margin Costs of Buying stocks on Margin Margin Call The Pros and Cons Psychology: Is it worth?     Margin call is a fabulous term which carries some mysticism. However, there is nothing
http://www.investingforbeginners.eu/margin_call

The Pros and Cons of Buying on Margin
  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?     The opportunity provided by buying on margin i
http://www.investingforbeginners.eu/the_pros_and_cons_of_buying_on_margin

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
http://www.investingforbeginners.eu/costs_of_buying_stocks_on_margin

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
http://www.investingforbeginners.eu/financial_investment

Trading stocks
  Trading stocks is a process when stocks are bought and sold on the stock market. How differs trading stocks and investing in stocks? Well, it is the same, just is common to think that investing is a long term pro
http://www.investingforbeginners.eu/trading_stocks

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
http://www.investingforbeginners.eu/trading_platform

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

M&A
  M&A (mergers & acquisitions) is a field of corporate finance in which corporations are acquiring other companies or are merging in between. Theoretically it doesn’t sound very impressive, but in rea
http://www.investingforbeginners.eu/ma

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

White Knight
  A white knight is a friendly (for the target) bidder who gives a better offer to acquire stake in the company than “hostile” bidder during hostile takeover. White knight is one of the strategies used
http://www.investingforbeginners.eu/white_knight

Poison Pill
  A poison pill is one of the strategies used to avoid hostile takeover. Poison pills are some rules in company’s charters that give some extra rights for corporation. Poison pills may be rights to acquire mo
http://www.investingforbeginners.eu/poison_pill

Organic Growth
  An organic growth is a growth of the company when inner resources are used to get larger market share. Also organic growth may be achieved together with growth of the whole market segment or entering new markets
http://www.investingforbeginners.eu/organic_growth

Employee Buyout
  An employee buyout is a takeover of the company’s control interest by its employees (usually employee stock ownership plan). Compared to a management buyout, employee buyout involves much more employees, an
http://www.investingforbeginners.eu/employee_buyout

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
http://www.investingforbeginners.eu/go_public

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
http://www.investingforbeginners.eu/floatation

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
http://www.investingforbeginners.eu/market_value

Bearish
  Bearish is attitude of an investor if investor expects market to go down in the near future. Most often term bearish is applied for stock investments when is believed that stocks are going to decrease in value. T
http://www.investingforbeginners.eu/bearish

Bullish
  Bullish is an investor's attitude when he believes that the investment market is going to rise in the near future. Most of the times this term is applied for investments in stocks, when is believed that stock mar
http://www.investingforbeginners.eu/bullish

Par Value
  Par value also is called face value or nominal value, and is a nominal amount of money that shows how much of money is related to the security nominally. Par value is used most commonly for two types of securitie
http://www.investingforbeginners.eu/par_value

Investment Products
  Investment products basically are investments that are packed and adopted for every investor. The best example of investment product could be mutual funds or any other investment funds that are well diversified a
http://www.investingforbeginners.eu/investment_products

Pig (investor)
  A pig is an animal known by every farmer. However, at investing pigs are also popular yet the meaning is different.   In investment world are two kinds of animals mentioned the most: bulls and bears. Bulli
http://www.investingforbeginners.eu/pig_investor

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

Growth Funds
  Growth funds are investment (mutual) funds that concentrate on investing in stocks of fast growing companies. Growth funds can be passively managed or actively-managed funds but all growth funds are riskier than
http://www.investingforbeginners.eu/growth_funds

Balanced Fund
  A balanced fund is a mutual (investment) fund that invests in different asset classes: stocks, bonds and money market investments according to the fund’s investment strategy.    It may
http://www.investingforbeginners.eu/balanced_fund

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
http://www.investingforbeginners.eu/stock_option

Financial Assets
  There are two main investment (asset) classes: financial assets and non-financial (tangible) assets. Both of them may have similar characteristics as yielding or increasing in value over long period; but financia
http://www.investingforbeginners.eu/financial_assets

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
http://www.investingforbeginners.eu/outstanding_share_number

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

Voting Right
  A voting right is a right provided by every common stock to participate in a shareholders’ meeting and vote for the decisions as management election, audit company election and other important questions. Us
http://www.investingforbeginners.eu/voting_right

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
http://www.investingforbeginners.eu/stock_trader

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
http://www.investingforbeginners.eu/investment_bubble

Active Investment
  Active investment (management) is opposite to passive investment and means that investments are managed by some investment professional that picks the securities according to investment market tendencies and
http://www.investingforbeginners.eu/active_investment

Investment Services
  Investment services is a spectrum of financial services provided by investment banks, brokerage houses, investment management companies and other financial intermediaries that work in investment finance segment.
http://www.investingforbeginners.eu/investment_services

Best Investments
  Best investments are always wanted, but the reality is that there are no best investments for everyone. And if such investment would exist then those investments would become an investment bubble and would not st
http://www.investingforbeginners.eu/best_investments

Investment Information
  Investment information is crucial to make good investment decisions. It is information that may help to make good investment solution and would help to reach for better investment results.    The deta
http://www.investingforbeginners.eu/investment_information

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

Short-Term Investments
  Short term investments are investments that are suited for short term investing. There can be different understanding of short term investing but it is normal that investments for period till one year can be cons
http://www.investingforbeginners.eu/shortterm_investments

CIS countries
  CIS countries (Commonwealth of Independent States) is by Russia led group of countries that earlier belonged to the Soviet Union. However, not all the countries of the past Soviet Union’s belong to CIS coun
http://www.investingforbeginners.eu/cis_countries

Valuation Methods
  There are three main valuation methods used for business valuation or stock valuation:  Relative valuation is very easy to use and is the fastest method. That is why this method is so popular among fina
http://www.investingforbeginners.eu/valuation_methods

Company Valuation
  Company valuation is the same as business valuation. The only difference between company valuation and business valuation may occur if value of company’s stocks has to be determined instead of the whole bus
http://www.investingforbeginners.eu/company_valuation

stock Market Trading
  stock market trading is similar to stock market investing; however, it is not exactly the same. At first, stock trading refers to a stock trader who trades stocks very often and do not invests for a long term. Lo
http://www.investingforbeginners.eu/stock_market_trading

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
http://www.investingforbeginners.eu/stock_price

stock Market Investing
  stock market investing is investing in equity securities – stocks. stock market investing differs from stock market trading because has longer term approach.    stock markets cover stocks that a
http://www.investingforbeginners.eu/stock_market_investing

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

Best stocks
  Best stocks would depend on criteria of the particular investor. Of course, you could say that best stocks should be the stocks that will increase the most in the future. But reality is that nobody knows about th
http://www.investingforbeginners.eu/best_stocks

Buying stocks
  Buying stocks is an easy thing. Of course, it is harder to pick good stocks. Every person, that has some capital, can open a trading platform and buy stocks, but the goal is not only to buy the stocks but to make
http://www.investingforbeginners.eu/buying_stocks

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.
http://www.investingforbeginners.eu/stock_symbol

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
http://www.investingforbeginners.eu/stock_ticker

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
http://www.investingforbeginners.eu/trading_volume

Discount Broker
  A discount broker is a brokerage company that acts as an intermediary for securities trading and offers is used to offer its services for a lower commission fees. At the same time discount brokers provide less co
http://www.investingforbeginners.eu/discount_broker

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
http://www.investingforbeginners.eu/liquidity

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
http://www.investingforbeginners.eu/broker

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

Investment Fund Management
  Investment fund management is not much different from simply investment management or asset management. Investment fund is large investment portfolio and the composition of that portfolio depends on particular fu
http://www.investingforbeginners.eu/investment_fund_management

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

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
http://www.investingforbeginners.eu/real_estate_investment_management

Investor’s 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
http://www.investingforbeginners.eu/investors_abc

Investment Management Consultations
  Investment management consulting is part of investment management business that helps for investors to manage their investments more effectively. Investment management is one of the most crucial step in personal
http://www.investingforbeginners.eu/investment_management_consultations

Investment Management Process
  Investment management process has several functions: Macroeconomics analysis and estimates Research of industry sectors Security picking Asset allocation Market timing Financial news covering Securitie
http://www.investingforbeginners.eu/investment_management_process

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

Finding Investors
  Finding investors might be a hard task if you have no required knowledge for that. Most probably you are looking some business investors or angel investors that would invest in to your business. And the success o
http://www.investingforbeginners.eu/finding_investors

Target Price
  Target price is a calculated price that should represent the market value of the stock and also can be called target value. Target price normally is calculated by analysts of investment banks of brokerage compani
http://www.investingforbeginners.eu/target_price

Overvalued stocks
  Overvalued stocks are those stocks that cost in stock market more than their target price is. Target price of the stock is calculated market value of a stock using stock valuation methods. The most popular method
http://www.investingforbeginners.eu/overvalued_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
http://www.investingforbeginners.eu/target_value

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
http://www.investingforbeginners.eu/financial_statements

Balance Sheet
  Balance sheet is one of the three main financial statements (others are income statement and cash flow statement). Balance sheet also might be called a statement of financial position because this statement expla
http://www.investingforbeginners.eu/balance_sheet

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
http://www.investingforbeginners.eu/cash_flow_statement

Earnings
  Earnings are calculated gains of the company and should represent the profit of that business. There are several types of earnings:   Retained earnings are equal to net profit less dividends. Net earnin
http://www.investingforbeginners.eu/earnings

Profit
  Profit is a term used in various finance fields and may have many meanings. Basically profit is the positive difference between the income and costs. If costs are higher than income, then instead of profit loss w
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Income
  The term income may have several meanings. In corporate finance it basically means profit or earnings that are equal to revenue less expenses. But in some cases income may also indicate company’s revenue bu
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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
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Loss
  Loss (net loss) is a financial situation of the company when its revenue is lower than expenses. It is natural that every company tries to receive a profit instead of a loss, but not every succeeds that. Some com
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Financial Analysis
  Financial analysis is an important part of investing, especially if investor wants better results from his investments. Of course it is possible to ignore financial analysis and make investment decisions based on
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Return
  Return analysis is different from profitability analysis because usually return is measured as a profitability of the assets, investments, capital or other similar asset group but not as a profitability of the re
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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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Working Capital Management
  Why Working Capital Is Important? Working capital is one of the main parts of company’s finances and every manager, even of the small company, manages working capital despite the fact he knows about that o
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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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Investments in Small Cap stocks
  Investments in Small Cap stocks Investments in small cap stocks could be compared to penny stock investments but the term ‘penny stocks’ is not specific enough. The thing is that the determination of
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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
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Investment Formula
  If you are looking for some perfect investment formula, you should get disappointed because there is no secret investment formula that would be profitable for every investor. If there would be such perfect formul
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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
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Price to Cash Flow Ratio
  Price to cash flow ratio (P/CF) and EV/CF ratio are similar but there are some differences. The main difference is that EV/CF also includes the effect of company’s financial debt which says a different
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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
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Free Cash Flow
  Free cash flow of the company shows how much of cash business has earned in the reality over the period. There are many ways to determine the free cash flow of the company, and most often this indicator is provid
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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
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Economic Cycle
  What is economical cycle? An economic cycle means the repeated changes of the economical trends. While during very long economical period economy always has up-trend because of technological evolution and increa
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Cost of Capital
  Capital of every company consists of two parts: equity capital and debt capital (only if company has no financial debts it has only equity capital). Both these capital sources have their costs and this is cost of
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Beta
  What is beta? Beta is a ratio that measures volatility of an investment in relation to the whole market. In other words, it shows how the price of stock was changing compared to the whole market. Theoretically,
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Volatility
  What is volatility? Volatility definition can be short: volatility is the size of the amplitude in investment’s value changes over time. In simple words, it describes the riskiness of the security because
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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
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Inside Information
  Inside information is information of the company that was not publicly disclosed. Such information is daily routine for company’s managers, finance department employees or product department employees as th
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Insider Trading
  Insider trading is an illegal activity in trading stocks when a stock trader is using information that was not officially disclosed. Such information is called inside information. Such trading is called ‘in
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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
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Fundamental Analysis
  Fundamental analysis is the type of financial analysis that relies on company’s fundamentals. Those fundamentals depend on the target of the analysis. For example, fundamental analysis of stock depends on i
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Technical Analysis of stocks
  Technical analysis of stocks is widely known type of stock analysis. Technical analysis is completely opposite to fundamental analysis. While fundamental analysis relies on company’s ability to generate cas
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Cash Ratio
  Cash ratio is a financial ratio that measures company’s financial liquidity over short term. It compares company’s cash reserves to short-term liabilities. If ‘cash ratio’ is high, it may
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Equity to Asset Ratio
  Equity to asset ratio measures company’s riskiness by comparing its equity to its assets. If this ratio is very low (lower than 0.3), it might mean that company may be at risk if conditions of the market wo
http://www.investingforbeginners.eu/equity_to_asset_ratio

Total Debt Ratio
  Total debt ratio compares total liabilities to total assets. The higher ratio represents riskier situation. And if this ratio is equal to 1.0, it would mean that liabilities are equal to assets or in other words
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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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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.  
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Market Risk Premium
(Equity Risk Premium)   Every investment carries some level of risk and some level of potential return. Those two measures are closely related in investment finance and are used in CAPM which calculates cost of eq
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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

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
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