Latest Free Templates

This is default featured post 1 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

This is default featured post 2 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

This is default featured post 3 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

This is default featured post 4 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

This is default featured post 5 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.This theme is Bloggerized by Lasantha Bandara - Premiumbloggertemplates.com.

Monday, September 12, 2011

Most Admired Companies in India

Infosys was ranked India's 'Most Admired Company' in The Wall Street Journal Asia 200, a listing of Asia's leading companies in 2010. In the online survey of readers and online subscribers of The Wall Street Journal, Infosys rated top in the rankings for corporate reputation and vision.

In addition, Infosys was voted the most admired Indian company by peers in the Businessworld Most Respected

Sunday, September 11, 2011

Fastest Growing Banks in Pakistan

JS Bank Limited is one of Pakistan's fastest growing and upcoming banks. It has seen some robust performance, successfully earning a net profit of Rs.122.57 million for the period ended September 30, 2008. The Bank received an award for the 'Best Communications Campaign by a Conventional Bank' as part of the Pakistan Banking Awards. The Awards were given by the Khaleej Times which is one of the

Best Managed Companies in India

Tata Power has been listed among the top 13 Best Managed Companies in India by Business Today-AT Kearney. It was ranked 5th for its continuous efforts to transform the 90-year old power utility through a combination of cost reduction, steady growth and change in attitude into a more consumer-friendly place in a highly regulated environment. The top 13 best managed companies were as follows:

Saturday, September 10, 2011

Invest in Singapore Stocks

Want to buy stocks in Singapore? Singapore has an open business environment and offers many investment opportunities. It has been ranked No.2 worldwide as the city with the best investment potential for 16 consecutive years (Source: BERI Report 2010-1). Following are some of the best company stocks to invest in:

SingTel - It is the largest listed company on the Singapore Exchange by market

Venture Capital Firm in Pakistan

TMT Ventures is Pakistan's pioneering venture capital firm that has been funding start-ups in technology, media and telecom sectors since 2001.

The firm's management team comprises of people with diverse background and skill set, including financial, industry and private equity experience. The company has established contacts and relationships with forums like The Indus Entrepreneurs (TiE),

Friday, September 9, 2011

Best Broker in India

Kotak Securities Limited was named the 'Best Broker in India' by FinanceAsia for 2009 and 2010. It is highly regarded as one of the top rated stockbrokers in the country, offering broking services for stock trading through the branch and Internet, Investments in IPO, Mutual funds and Portfolio management services.

Kotak Securities Ltd., a 100 % subsidiary of Kotak Mahindra Bank, is one of the

Thursday, September 8, 2011

Investment Companies in Kenya

Centum Investment Company Limited and Trans-Century are amongst the leading investment companies in Kenya.

Centum Investment Company Limited is the largest quoted investment company in East Africa listed on the Nairobi Stock Exchange (NSE). Its portfolio consists mainly of investments in private equity, listed equity and real estate. The private equity portfolio is the largest asset class, with

Finance Companies in Pakistan

Following are amongst the leading finance companies in Pakistan:

House Building Finance Corporation Limited (HBFCL) - It is the most longstanding housing finance institution in Pakistan and ranks amongst the oldest housing finance institutions in the entire Asia-Pacific region, providing financing facilities for construction, reconstruction, renovation and purchase of houses. The HBFCL is the

Wednesday, September 7, 2011

Invest in Indian Stocks

Want to invest in Indian stock market? India has one of the fastest growing economies of the world. According to the World Bank gross domestic product rankings, India is rated amongst the top ten economies in the world by GDP.

Following are some of the best Indian stocks to invest in:

Infosys Technologies, Ltd. (NASDAQ:INFY) - It is a public limited company incorporated and domiciled in India

Venture Capital Firms in Sri Lanka

Blue Ocean Ventures and Lanka Ventures Limited are two of the major venture capital firms in Sri Lanka.

Blue Ocean Ventures (BOV) is a Sri Lankan based, BOI approved seed-stage venture capital fund. The firm provides necessary funding and support for local talent to launch and build innovative companies. It seeks to invest seed capital in exciting new start-up companies. The Founding Partners in

Tuesday, September 6, 2011

Most Profitable Banks in India

ICICI Bank is one of the most profitable banks in India. It is the country's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. ICICI Bank (India) has won the Excellence in Business Model Innovation award for 2008 in Asia. It has built a powerful, sustainable

Monday, September 5, 2011

Investment Banks in Sri Lanka

Acuity Partners (Pvt) Ltd and NDB Investment Bank Limited are the leading investment banks in Sri Lanka.

Acuity Partners (Pvt) Ltd is a full serviced investment banking firm promoted as an equally owned joint venture between DFCC Bank & HNB PLC. It is the only integrated investment bank in Sri Lanka that provides a comprehensive range of services and products such as corporate finance, fixed

Sunday, September 4, 2011

Best Trade Finance Bank in India

ICICI Bank Limited is India's second-largest bank and has won the Best Trade Finance Bank and Best Foreign Exchange Bank, India at the Finance Asia Country Awards for Achievement, Hong Kong. In addition, ICICI Bank received the award of Best Trade Finance Bank in India by The Asset Triple A Award, Hong Kong.

ICICI Bank is India's second-largest bank providing a wide range of banking products and

Saturday, September 3, 2011

Top Largest Banks in Virginia

The top largest banks in Virginia (USA) are TowneBank, Carter Bank & Trust, StellarOne, Virginia Commerce Bank, among others.

TowneBank is one of the largest banks headquartered in Virginia, with total assets of $3.66 billion as of September 30, 2010. It offers a comprehensive range of financial services through its controlled divisions and subsidiaries that include Towne Investment Group, Towne

Friday, September 2, 2011

Best Consumer Internet Banks

Canadian Imperial Bank of Commerce (CIBC) was named Canada's Best Consumer Internet Bank for the third year in a row by Global Finance magazine in its 11th annual “World's Best Internet Banks” competition, which further demonstrates its commitment to delivering greater access and choice to clients. CIBC is a leading Canadian-based financial institution providing a full range of financial products

Thursday, September 1, 2011

Growth Rate in Earnings per Share

The Earnings Per Share (EPS) growth rate is expressed as a percentage and shows the annualized rate of growth of EPS.

Formula:
EPS Growth Rate = (EPS at end - EPS at beginning) / EPS at beginning

Example 1:
The common stock of Company B has an EPS of $1.50 in Year 1, and $2.00 in Year 2. Thus, the change in EPS = 2.00 - 1.50 = $0.50, and then you simply divide the change in EPS by the earnings

Wednesday, August 31, 2011

Best Global Bank Award

Credit Suisse was recognized as the “Best Global Bank” 2010 by Euromoney, a leading investment banking magazine. Credit Suisse is one of the best-run banks in the world. Its model is one that many other global banks are seeking to emulate. Other strengths highlighted by Euromoney include the Bank's strong capital position, its credit rating and notable performances in the investment bank and

Tuesday, August 30, 2011

Top Banks in Utah

The top largest banks in Utah (USA) are Ally Bank, UBS Bank USA, Wells Fargo, Zions First National Bank, among others.

Ally Financial Inc. has approximately $172 billion in assets, with $38 billion in deposits at Ally Bank and ResMor Trust, as of December 31, 2010. Ally Bank has introduced 24/7 live customer care and an online savings account that has been named best in 2009 by Kiplinger's and "

Monday, August 29, 2011

Best Global Transaction Banking House

In the annual Euromoney Awards for Excellence, Citi has been awarded Best Global Transaction Banking House for its Global Transaction Services business, which provides integrated treasury and trade solutions and securities and fund services to multinational corporations, financial institutions and public sector clients in more than 100 countries around the world. Citi is the preeminent global

Sunday, August 28, 2011

How to Calculate Earnings Yield

Earnings yield is a company's earnings per share divided by the current market price per share. It is the reciprocal of the price to earnings ratio. The higher the earnings yield the more undervalued a stock is.

Learn how to calculate the earnings yield with the following examples:

Example 1:
If a stock currently has a P/E ratio of 5, it would have an earnings yield of: 1/5 = 20%

Example 2:

Saturday, August 27, 2011

Top Boutique Investment Banks

New Access Capital was voted as one of the top boutique investment banks in 2007 and 2008. One of its completed deal, Focus Media, was voted the “Deal of the Year for International Private Equity Capital” in 2004. New Access Capital is a leading mid-market focused corporate finance advisory firm in China. Its clients include: Focus Media (FMCN), the9 (NCTY), Ocean Land (HK: 3377), VImicro (VIMC),

Friday, August 26, 2011

Tips For Online Share Trading

Online share trading is a great way to help you make money and realize your dreams. There are so many things that you will need to consider when you start out in the stock market. Following are a few common sense tips to help you avoid investment mistakes and make a profitable online share trading:

1) First you need to do some research on the company shares you are interested in before buying.

Thursday, August 25, 2011

Most Innovative Investment Bank

Citi has been named "Most Innovative Investment Bank in Climate Change and Sustainability" for the second year in a row by The Banker Magazine, a prestigious global publication affiliated with the Financial Times. The award focuses exclusively on innovation in products, structures or strategies that meet challenges, bring clarity to the market and fulfill client objectives.

Goldman Sachs is

Best Place To Buy Stocks Online

Where is the best place to buy stocks online? This is one of the most frequently asked questions by many beginner investors. There are dozens of online broking companies on the web, but finding one that fits all of your needs can sometimes be a challenge. Some of the most popular online trading sites are E*TRADE, TD Ameritrade, Charles Schwab, Scottrade, to name a few.

E*TRADE provides online

Wednesday, August 24, 2011

Fastest Growing Investment Banks

Nomura is one of the fastest growing global investment banks in the world. According to the London Stock Exchange data, Nomura is rated #1 for customer market share on the LSE for value of shares traded for June 2009 to August 2010.

Barclays Capital is one of the world's fastest growing investment banks. It offers a broad range of products and services tailored to meet the specific needs of its

Things To Look For In Stock Trading Software

Stock trading software is an essential tool for investors who want to actively trade stocks and make money online. Successful stock traders should learn how to choose the best online trading software so as to maximize their profits and minimize the losses.

There are a number of things to consider when finding the right type of software:

1) Look for more established stock trading software

Tuesday, August 23, 2011

Investment Banks in Norway

Following are the major investment banks in Norway:

Pareto Securities - It is an investment bank in the Pareto Group. The business is a leading player in the field of stock and bond broking and financial counseling. The firm's head office is in Oslo, with additional offices in Stavanger, Bergen, Kristiansand, Trondheim, New York and Singapore.

J.P. Morgan - It was named Best Investment Bank in

Monday, August 22, 2011

Why People Lose Money in the Stock Market

Investing in stock market is very rewarding financially but also very risky. Many people lose their money in this particular investment because they do not have any knowledge about picking the right stocks.

There are many reasons why people lose money in the stock market, such as the follows:

1) Trading with money you can't afford to lose is a sure-fire way to lose money very fast.

2) Buy more

Retained Earnings To Total Assets Ratio

The retained earnings to total assets (RE/TA) ratio measures the firm's ability to accumulate earnings using its assets. A higher ratio is preferable because it indicates that the company is able to retain more earnings. It can be calculated as follows:

Formula:
RE/TA = retained earnings / total assets

Example:
CFA Ltd has the following information:
Retained profits $600,000
Freehold buildings

Sunday, August 21, 2011

How to Calculate Price Earnings Ratio

Price Earnings Ratio (P/E) is a commonly used valuation measure that compares the price of a share to the earnings per share. The higher the ratio, the more expensive the stock is relative to the earnings of the company.

Learn how to calculate the P/E ratio with the following example:

Robert Ltd has the following information:
Ordinary shares of $0.50 each: $400,000
10% Preference shares of

How to Calculate Dividend Growth Rate

The dividend growth rate of a stock is the percentage increase in dividends for a certain period of time.

Learn how to calculate dividend growth rate with the following examples:

Example 1:
In Year 1, the company paid a dividend of $2.70 per share. In Year 2, it increased the dividend payment to $2.90 per share. Thus, the change in dividends = 2.90 - 2.70 = $0.20, and then you simply divide the

Saturday, August 20, 2011

How To Find P/E And PEG Ratios

The Price Earnings (P/E) ratio is a valuation measure that compares the price of a stock to its earnings per share (EPS). A stock with high P/E ratio can be overpriced.

The PEG (Price/Earnings to Growth) ratio is a valuation metric used to measure a stock's value while taking into account the price of a stock, the earnings per share, and the expected growth of the company. The lower the PEG

How to Calculate Preferred Dividends

Preferred stock (or preference shares) is a special class of stock that pays a fixed dividend set at the time of issuance. Also, preferred dividends must be paid before common stock dividends. To calculate the dividends for preferred stocks, you need to multiply the par value of the shares by the dividend percentage.

Example 1:
If the dividend percentage is 8 percent and the preferred stock was

Friday, August 19, 2011

How to Calculate Earnings Per Share (EPS)

Earnings Per Share (EPS) measures the profit attributable to shareholders to the number of shares in issue. It is calculated by dividing the total profit available to ordinary shareholders by the total number of ordinary shares. (Note: Total profit available to ordinary shareholders = Net profit after tax − Preference dividend)

Learn how to calculate EPS with the following examples:

Example 1:

How to Calculate Shareholder Funds

Shareholder funds (also known as stockholders' equity or shareholders' capital) represent the amount of capital invested by stockholders into the company, including equity share capital, preference share capital, surplus and all reserves.

Calculation:
Stockholders' equity = Total assets - Total liabilities
Or, = Share capital + Reserves
(Note that: Reserves include share premium, retained

Thursday, August 18, 2011

Why Does the Stock Market Price Rise and Fall?

Stock prices change every day because of market forces of Supply and Demand. When more investors want to buy a stock (demand) and this demand is greater than what is available (supply) in the market, the share price will rise. Similarly, when there are more investors want to sell a stock (supply) than buying it (demand), the share price will fall.

There are various factors that affects stock

How to Calculate Price to Cash Flow Ratio

Price to Cash Flow Ratio (P/CF) is a financial ratio used to compare the share price with cash flow per share. The lower the ratio, the more likely that the stock may be undervalued. P/CF is more stable than Price-Earnings Ratio (P/E), since cash flow is usually less volatile than earnings. It can be calculated as follows:

Formula:
P/CF = Market price per share / Cash flow per share
Note: Cash

Wednesday, August 17, 2011

Technical Analysis of Stock Trends

Technical analysis is a method used to forecast future trends of stock prices using past market data. It is widely used among stock traders and investment professionals. Technical analysts do not measure the stock's intrinsic value but they use stock market charts to identify patterns and trends that may suggest future price movements.

There are a few different types of charts that can be used

How to Calculate Dividend Yield

Dividend Yield (or the dividend-price ratio) indicates what percentage return a company pays out in the form of dividends. The higher the per share price, the lower the dividend yield and this may indicate an over-priced stock.

Learn how to calculate dividend yield with the following examples:

Example 1:
If you purchased a stock at $8 and received a dividend of $0.12 on it, then:
Dividend Yield

Tuesday, August 16, 2011

Big Returns With Little Invested

Penny stock trading is one of the most popular methods to quickly make big returns on a small amount of money invested. You can make million of dollars from it if you know how to select the best stocks that can work with your strategy, but you can also lose money if you do not handle it well.

Penny stocks refer to stocks of companies that are offered at incredibly low prices. Lots of investors

How to Calculate Cash Ratio

Cash Ratio is the ratio of a company's total cash and cash equivalents to its total short-term liabilities. It is an indicator of a company's ability to pay off its current liabilities. Note that this ratio ignores timing of both cash received and cash paid out.

Formula:
Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities

Learn how to calculate the ratio with the following example:

Monday, August 15, 2011

Examples of Low Risk Investments

Low-risk investments are more stable and safe as they are not likely to suddenly drop in value. Examples of low risk investments include bank deposits, certificate of deposits, money market funds, basic savings accounts, mutual funds, treasury bills, annuities, and blue chip stocks.

Blue Chip Stocks - Blue-chip stocks are very reliable and low risk because they are the stocks issued from highly

How to Calculate Efficiency Ratio

Efficiency ratios measure how effectively the company manages its assets and liabilities. Some of the most commonly used efficiency ratios include Inventory Turnover Ratio, Days Sales Outstanding Ratio, Working Capital Turnover Ratio, etc. Learn how to calculate these ratios with the following example:

Calculate the relevant efficiency ratios, given the following information:
Accounts payables

Sunday, August 14, 2011

What is Fundamental Analysis?

Fundamental analysis is a method of analysis that attempts to predict the intrinsic value of an investment. It takes into account various factors (such as economic, political, environmental factors) and elements that influence the stock market.

Fundamental analysis includes: economic analysis, industry analysis, and company analysis. Fundamental analysts study the company's financial statements

How to Calculate Current Ratio

Current ratio (or working capital ratio) is a financial ratio that measures whether a firm has enough resources (liquid assets) to pay its debts (current liabilities) within one year. The ratio is calculated as follows:

Current ratio = Current Assets / Current Liabilities

Learn how to calculate current ratio with the following example:

Thomas Ltd has the following data as at 31 December 2010:

Saturday, August 13, 2011

Technical vs Fundamental Analysis of Stocks

What is the difference between technical and fundamental analysis? Technical analysis focuses on the analysis of data generated from the market activity and uses this data to predict the future price movements of stock. Fundamental analysis, on the other hand, looks at the intrinsic value of a particular stock.

Fundamental Analysis versus Technical Analysis:

1) Fundamental analysts make

How to Calculate Net Asset Value

The net asset value (NAV) formula is widely used in calculating a mutual fund's value per share.

Formula:
Net asset value = total assets – intangible assets – total liabilities
Net asset value per share = NAV / total outstanding shares

Learn how to calculate net asset value with the following examples:

Example 1:
If the net assets of a fund are $10 million, and the fund holds 2 million shares.

Friday, August 12, 2011

Different Classes of Company Shares

A listed company can issue different classes of shares that contain different rights and privileges, for example, rights to vote, rights to dividend payments, etc. Anyone can hold shares in a listed company, including employees who are also working in the company. As every share counts as one vote in the company, the more shares you acquire the more votes you have.

There are four common classes

Fastest Growing Companies in Canada

Annex - In 2010 Annex is ranked as a PROFIT Magazine Fastest-Growing Company in Canada for the fourth consecutive year. It is also recognized as one of the Top 250 Canadian Technology Companies by Branham Group for the fourth consecutive year. In 2006 Annex is ranked one of the fastest growing technology companies in British Columbia (Business In Vancouver).

Cygnal - It is ranked 1st on the

Thursday, August 11, 2011

Right Investment Strategy Can Make You Millions

Finding the right investment strategy can make you millions of dollars.

There are many ways and strategies that you can take to achieve your investment goals, but everyone is different, your choice can depend on your personal investment style. Make sure you have a clear investment strategy and avoid the most common investment mistakes.

One strategy that successful investors use is known as "

How to Calculate Dividend Cover Ratio

Dividend Cover Ratio is the ratio of company's earnings over the dividend paid to shareholders. It is the inverse of the Dividend Payout Ratio. The lower the dividend cover, the higher the percentage of total earnings paid out as dividends to shareholders.

Learn how to calculate the dividend coverage ratio with the following examples:

Example 1:
PPC Company makes a net profit of $200,000 and

Wednesday, August 10, 2011

How to Get Free Stock Market Quotes

Nowadays stock investors can easily get free market news and market research tools online. The following websites provide recent quotes free to viewers, as well as other useful financial information:

Yahoo! Finance - It provides free stock quotes, portfolio management resources, latest news, mortgage rates, international market data and message boards.

Google Finance - Get real-time stock

Financial Planning Firms in Canada

The leading financial planning firms in Canada include Investors Group Inc., Investment Planning Counsel, Williams Financial Group, among others.

Investors Group Inc. is a Canadian leader in providing personal financial planning services. Its primary objective is to help Canadians plan for financial security by providing quality financial planning advice and products through a network of

Tuesday, August 9, 2011

Investment Advice for Beginners

Stock market investments are high-risk high-return investments requiring extensive knowledge and preparation. Many beginner investors lose their money in the stock market and this is mainly because they are not prepared to put the time in to learn how to trade and manage risk.

If you have no experience in trading, you should practice a lot and ask for investment advice from your advisor to help

Best Managed Companies in Ireland

SLA Mobile has been named as one of Ireland's ‘Best Managed' companies in the Deloitte Best Managed Companies Awards Programme. In total, 20 companies which demonstrated superior business performance were recognized at a gala awards dinner in the Burlington Hotel in Dublin on 4 March 2011.

Mount Charles Catering Ltd has also been named as one of Ireland's ‘Best Managed' companies in the Deloitte

Monday, August 8, 2011

Short Selling Stocks to Take Advantage of Market Declines

Short selling (also known as shorting or going short) is the practice of selling a borrowed stock, and hoping the share price will drop soon so that you can buy it back for a profit. It is a way to take advantage of market down trends or recession that can provide you with an opportunity to make profitable trades in the stock market.

The only way you can profit form going short is if the stock

Best Trading Technology Vendor

Omnesys Technologies received the TradeTech India Excellence Award - 2011 for the “Best Trading Technology Vendor”. The award recognizes Omnesys as the leading technology vendor for Indian brokerage firms in terms of user satisfaction, cost efficiency, reliability and speed. In addition, Omnesys Technologies' flagship product NEST also received the TradeTech India Excellence Award – 2011 for the

Sunday, August 7, 2011

How to Create an Investment Plan

Creating an investing plan is one of the most important things that you need to do if you want to become a successful trader in the stock market. Following are the key steps to follow when creating a stock investment plan:

1) Identifying your goals and time horizon: Having clear goals will make you more successful when investing in the stock market. And, you need to establish a time frame in

How to Calculate Share Capital

Share Capital (or capital stock) is the fund raised by a listed company through the issuance of common stock (ordinary shares) and preferred stock (preference shares).

There are different types of share capital such as the Authorised Share Capital, Issued Share Capital, etc. The authorised capital of a company is the maximum value of securities that a limited company can legally issue to its

Saturday, August 6, 2011

How to Pick Stocks in a Bear Market

When investing in the bear market you have to think long term, understand the type of strategy chosen, and select the right stock to buy. A bear market (the opposite of a bull market) is where the market is weak and the trader expects the price of stocks will drop. In other words, the trading volume is generally lower as prices fall during these weak market phases, however, it is still possible

How to Calculate Equity Ratio

Definition: Equity Ratio measures the relative proportion of equity used to finance the company's assets.

Formula:
Equity Ratio = Owners Equity / Total Assets

Learn how to calculate the ratio with the following examples:

Example 1:
ABC Company has $700,000 in total assets and $200,000 in debt and loans, then:
The shareholders' equity = Total Assets - Total Liabilities = 700,000 - 200,000 =

Friday, August 5, 2011

How to Calculate Price to Book Ratio

Price to Book (P/B) Ratio is a financial ratio used to compare a stock's market value with the book value. It is also known as the market-to-book ratio or the price-to-equity ratio. A higher ratio indicates that the company has better future prospects. P/B can be calculated as follows:

Formula:
P/B ratio = Market capitalization / Book value of equity
OR = Price per share / Book value per share.

Borrowing Ratio Calculation

Definition: Borrowing ratio shows total debt as a percentage of long-term capital (net worth). The higher the ratio, the greater risk will be associated with the firm because the company is burdened with higher borrowings. In other words, more profits of the company will be creamed off to pay the interest on debts and this may mean less profit for equity shareholders. The ratio can be calculate

Thursday, August 4, 2011

How to Calculate Gross Profit Margin

Gross profit margin can be calculated by dividing gross profit of the business by total sales revenue generated. The ratio is expressed as percentage and is as follows:

Gross Profit Margin = (Gross profit / Sales) * 100%

Learn how to calculate Gross Profit Margin with the following example:

James Ltd has the following data for the year ended 31 December 2010:
Sales revenue $870,000
Returns

Wednesday, August 3, 2011

How to Calculate Working Capital

Working capital is the difference between total current assets and total current liabilities. Current assets are those assets that are expected to be consumed within a year, including cash, cash equivalents, short-term investments, accounts receivable, inventory, etc. Current liabilities are payable within one year of time and include accounts payable, accrued expenses, notes payable and the

Tuesday, August 2, 2011

How to Calculate Net Profit Margin

The net profit margin (also called net profit percentage) can be calculated by dividing net profit after interests and taxes by sales revenue. The ratio is expressed in percentage terms:

Net Profit Margin = (Net profit before interest and taxation / Sales) * 100%

Learn how to calculate Net Profit Margin with the following example:

NBA plc has the following information for the year ended 31

Monday, August 1, 2011

Invest in Malaysia Stocks?

Want to buy stocks in Malaysia? Malaysia has the third largest economy in South East Asia and 29th largest economy in the world by purchasing power parity. Following are some of the blue chip companies which might be worth to invest your money in:

Genting International PLC (GIGNF.PK): The Genting Group was founded in 1965 and is highly regarded as one of Asia's leading and best-managed

Saturday, July 30, 2011

Operating Profit Margin Ratio Analysis

Operating Profit Margin (also known as EBIT to sales ratio, return on sales, or operating margin) is a type of profitability ratio used to measure the Operating Profit in relation to the Net Sales. A higher ratio is better because it indicates that the company can keep its costs under control (with lower fixed cost). It can also mean that sales are increasing faster than costs.

Formula:

Wednesday, July 27, 2011

Return on Capital Employed Calculation

The Return on Capital Employed (ROCE) is used as a measure of the net profit generated from the long-term capital invested in the firm. The ratio is expressed in percentage terms as follows:

ROCE = [(Net profit before interest and taxation) / (Share capital + reserves + long term loan)] *100%

Learn how to calculate ROCE with the following example:

COO Ltd has the following information:
$1

A Novice's Guide to Penny Stocks

Penny stocks are low priced and highly speculative stocks that are very risky. They are generally issued by start-up companies with little track record in revenues and earnings. This type of stocks is very popular among small speculators because of its low prices and high earning potentials.

Most penny stocks are not traded on the stock exchange market such as the American Stock Exchange, the

Tuesday, July 26, 2011

Evaluating Potential Stock Investments

There are numerous factors to take into account when evaluating a potential stock investment opportunity. Investors should do proper research on every aspect of the stock market. Relevant ratios (such as ROE, P/E, etc.) need to be interpreted and specially looked in detail. You should know how to apply fundamental analysis to evaluate potential investments for both growth and value.

Some of the

Characteristics of Preferred Stock

Like common stock, preferred stock offers partial ownership in a corporation. Preferred stocks may be participating or non-participating, convertible or non-convertible, cumulative or non-cumulative, redeemable or non-redeemable, or a combination of these features.

Following are some of the main characteristics of preferred stock:

1) Preferred stock has a fixed rate of dividend, which is

5 Reasons to Buy Penny Stocks

Penny stock investing involves significant risks but many people prefer to trade penny stock because of its many advantages over other types of investment.

Following are the main reasons why you should buy penny stocks:

1) Penny stock investing is affordable and easy. It does not require a large initial capital investment, meaning that you can buy more shares with little money invested. For

Monday, July 25, 2011

Characteristics of Bonds

Bonds are known as fixed income or fixed interest securities because the interest payments are fixed in advance and paid on a regular schedule.

Following are the main characteristics of bonds:

1) A bond is a type of security that gives the holder a financial claim on the issuing company. When you invest in bonds, you are loaning money to the issuer, and you are entitled to receive regular

Why Buying High Priced Stocks Work Well

Owning a high-priced stock may imply that you have a very high-quality company stock. You can still make a good return if the stock is in an upward trend during the growth phase.

Instead of buying low and selling high, some investors are attempting to "buy high and sell higher" when the high priced stock is on the move. Of course, investors should develop their own way of determining when to

Stockbrokers Botswana

Established in 1989, Stockbrokers Botswana is a reputable and leading stockbroking house in Botswana. The company was instrumental in the establishment of the Botswana Stock Exchange (BSE) and has been involved in every main board equity listing on the BSE since inception.

Stockbrokers Botswana has established strong relationships with domestic institutional and individual investors, and the

Sunday, July 24, 2011

How to Find Good Penny Stocks to Invest In

Penny stocks/shares are seen as a high risk investment vehicle, but can also be very profitable if you use quality services and resources to find good penny stocks to invest in.

First you should look into the company's financial position and performance, its share structure, operations, growth prospects, etc. Just like buying other stocks, you need to understand everything about the company. It

Characteristics of Common Stock

Stock represents the basic form of ownership of a corporation. It can be broadly classified as common and preferred stocks.

Common stocks are the most common form of equity investment. All corporations issue common stock and are controlled or owned by the shareholders or owners. Following are some of the most important features and characteristics of common stock:

1) Common stocks provide a

All-or-None Orders in Stock Trading

An All-Or-None (AON) order is an order to purchase or sell a stock that must be executed in its entirety, or not executed at all (no partial transaction). In other words, the order will execute only if there are enough shares available in a single transaction to cover it.

For example, when you place an all-or-none order to your stockbroker requesting 500 shares of Company ABC at $12, your broker

Saturday, July 23, 2011

Advantages and Disadvantages of Stock Trading

Stock trading is one of the most effective ways of making money and building wealth. It might seem easy but stock trading can be a risky venture especially for those who are lack of knowledge and experience.

Following are some of the advantages and disadvantages of trading in the stock market:

Advantages:
1) Big returns: There is a huge potential to make big profits in the stock market. Many

Fundamental Concepts of Diversification

Diversification is a technique for reducing investment risk. It is the only way to protect yourself from unsystematic risk, which is the risk associated with a particular company or stock.

The fundamental principle behind this technique is that a portfolio containing different kinds of assets carries lower risk than any other individual investment. There are different ways to diversify your

What is Dow Jones Indexes?

Dow Jones Indexes (DJI) is owned by the CME Group.and is a leading full-service index provider that develops and licenses indexes for use as benchmarks and as the basis of investment products.

In 2010, Credit Suisse and Dow Jones Indexes signed an agreement which covers the calculation, licensing, branding and marketing of the hedge fund indexes. DJI also introduced the Dow Jones Golden

Friday, July 22, 2011

How to Trade Stock Splits

A stock split increases the number of shares outstanding, which decreases the market price per share such that the before and after market capitalization of the company remains the same.

Example:
JKL Company splits its stock 2-for-1. Peter holds 1,000 shares before the split and each share priced at $20. So, Peter has $20,000 worth of stocks (1,000 * $20).
After the split, Peter will own 2,000

Stock Investing Tips for Beginners

Investing in the stock market is always risky. Following are some useful tips and advice for new beginners:
(i) Careful planning is important to successful trading. You should develop a long term investment plan and stick to it.
(ii)You need to know what your financial goals are, and how much you need to invest now in order to reach that goal.
(iii) It is wiser to start off with small investments

How to Gain Maximum Profit in the Stock Market

Nowadays, online stock trading is a very popular way to earn money. Investors can buy and sell securities through Internet which can be accessed on virtually any computer anywhere in the world. How to make a profitable investment in the stock market? This is a commonly asked question by many investors and traders. It is always best to do some rigorous research on the Internet and choose the best

Thursday, July 21, 2011

How to Calculate Stock Split

A stock split or stock divide increases the number of shares but reducing the total value of each share. To calculate stock splits, you will need to determine the rations like 2-1, 2-3, 2-4, etc.

Learn how to calculate a stock split with the following examples:

(1) If you owned 60 shares worth $10 per share prior to the split, and later the company decided to execute a 2-for-1 stock split, then

How to Find the Best Online Brokers

Finding the best stock broker is a very important part of the trading process. An online broker help you handle everything from tracking your portfolio to buying and selling shares online. You should consider the following factors when finding the best online brokers for your trading needs:

1) Account fees: You should check fees carefully before opening an online brokerage account. It's better

Advantages of Stock Splits

A stock split is an action taken by a company to decrease the price of  shares by increasing the number of shares available, so that the total dollar value of the shares remains the same as before the split. There are a number of ways in which the companies can split their stocks, such as two-for-one, three-for-two, three-for-one, etc. This requires approval from the board of directors and the

Wednesday, July 20, 2011

Stock Options Trading - Understand the Jargon

Trading stock options can be profitable but also risky. If you are interested in trading stock options, you must first learn the jargon and understand some of the basic concepts and terminology. It can be very lucrative if you trade the right way.

The basic concept in stock options trading is that investors purchase the right to either buy or sell a particular stock for a predetermined price

Bonus Issue vs Right Issue

What is the difference between bonus issue and right issue? A bonus issue (also called a capitalisation issue or a script issue) is an issue of ordinary shares to existing shareholders at no charge.

For bonus issue, new shares are issued by transferring company's reserves into share capital. The number of free shares is usually distributed pro rata to existing stockholder. For example, if a

Find the Best Penny Stock Investments

The are several important factors to consider when finding the best penny stocks for your investment. You need to understand what these penny stocks actually are, and be aware of the risks of trading such securities.

Penny shares/stocks are speculative small value stocks (below $5) and can be very risky. You can purchase a large amount for a small price and make a good profit if the price goes

Tuesday, July 19, 2011

Examples of Stock Splits

A stock split increases the number of shares outstanding, thereby reducing the price per share such that the before and after market capitalization will remain the same.

Example 1 (2-for-1 Stock Split):
CPU Company has 10,000 shares of stock priced at $20 per share. The market capitalization is 10,000 * $20 = $200,000.
Later, the company decided to execute a 2-for-1 stock split. After the split,

How to Use a Stock Screener

A stock screener is a very useful tool that helps traders to find new potential stocks for consideration. You can use stock screener to search stocks that meet a specific criteria such as Market Cap, Beta (Volatility), etc.

The Yahoo Finance website has a stock screener that allows you to sort through many stocks quickly under different conditions. You can use it to search stocks by industry,

Examples of Rights Issue

Rights issue is an issue of additional shares by a company to raise capital for expansion or to solve a liquidity problem. With the issued rights, existing shareholders have the privilege to buy new shares of a company in proportion to their existing holding, and at a discounted price.

Example 1:
MAA Company has 400,000 $1 ordinary shares as at 30 June 2011. The company decided to make a rights

Monday, July 18, 2011

Why Options Are Better Than Stocks

Options are financial instruments that can provide individual investor with the right, but not the obligation, to buy or sell a specified amount of an underlying asset at a predetermined price within a specified time period.

Following are some of the reasons why options trading is better than stock trading:

1) Options give you huge leverage and a much better control of risk.

2) Using options

Keys to Trading For a Living

Investing in stock market is one of the best ways to make money, and it is possible to make a living from trading. One of the most important keys to stock trading is to gain the knowledge and skills you need to succeed as a trader. You can do this with stock market training programs that are available on the World Wide Web.

Trading for a living can be done in different ways, you can either

Sunday, July 17, 2011

Picking Your First Stocks (For Beginners)

Picking your first stock can be a difficult and challenging task, and if you do not have the confidence in your ability to find a good stock, consider getting some help.

A few beginner tips for picking the right stocks and shares:

1) The first step when buying stocks is to do your research on what company to buy stocks in. Before picking a stock, you should find out some relevant details about

How to Calculate Book-to-Market Ratio

Book-To-Market Ratio is a financial ratio used to measure the value of a company by comparing the book value of a company to its market value. If the ratio is more than 1 then the stock is considered undervalued; if it is less than 1, the stock is considered overvalued.

Formula:
Book-To-Market Ratio = Book value of a company / Market value of a company

Note: The market value of a company is

Saturday, July 16, 2011

The Best Way to Learn Stock Trading

To be a successful stock trader, you should take the time to learn how to invest in the stock market effectively. What is the best way to learn stock trading? This is a commonly discussed question on many forum sites. If you are a new beginner, you definitely want to learn some basic knowledge about stocks and shares.

Following are some of the best ways to learn and understand stock market

How To Sell A Stock You Don't Own

How do you sell a stock you do not own? First you borrow the stock from a third party (your broker) and sell it to someone else. Later, when the share price drops you buy it at a lower price and return to your broker, thus making a profit. This is known as short selling.

Short selling (also known as going short or shorting) is the practice of selling stocks that have been borrowed from a broker,

Friday, July 15, 2011

How to Get Rich in the Stock Market

Can you get rich by investing in the stock market? The short answer is yes. Understanding the stock market is a key to becoming a successful trader. If you do adequate research and invest wisely, you can make money quickly.

The following advice will help you start a successful trading and make a good profit:

- Analyze the stocks thoroughly: Which industry does the company belong in? How does

Advantages and Disadvantages of Penny Stocks

The term "penny stocks" generally refers to low-priced stocks of very small companies, usually under $5. They are traded over the counter through the OTCBB and Pink Sheets exchanges.

Following are some of the major advantages and disadvantages of investing in penny stocks:

Advantages:

1) Penny stocks can double or even triple their value in a single day.

2) This is the easiest way to make

Thursday, July 14, 2011

Knowing When to Sell Your Stock

Knowing when to sell stocks is as difficult as knowing when to buy. This is one of the most difficult decisions that a stock trader has to make.

If you don't know when is the best time to sell your stocks, you should consult with a professional investment advisor. Following are the main reasons that you might want to sell a stock.

1) If the stock is not moving as hoped (e.g., growing slower

Advantages and Disadvantages of CFD Trading

Contracts for Difference or CFDs are leveraged instruments that allow investors to participate on the movement of shares and index prices without the need for ownership of the underlying asset. CFDs are available in countries such as The Netherlands, Poland, Portugal, UK, Singapore, Germany, Spain, Switzerland, Italy, South Africa, Canada, New Zealand, Australia, Sweden, Norway, France, Ireland,

Wednesday, July 13, 2011

How to Pick a Good Stock For Investment

There are various factors that you need to take into account when picking a good stock for investment purposes, such as the company's profitability, operational efficiency, and so on. It is essential to learn about the stock market, how it works and how trading is done. You can easily find these useful information via the Internet, online articles, newsletters, reviews, etc.

It is always better

Best Electronic Trading Platform

FXall was named 'Best Electronic Trading Platform' at the FX Week Best Banks Awards 2010 voted for by corporate treasurers, investors and banks. The FXall platform offers clients with an edge at every stage of the trade lifecycle from execution to post-trade, providing deep liquidity, flexible execution mechanisms, robust infrastructure and market-leading solutions capable of meeting the most

Tuesday, July 12, 2011

How to Trade Penny Stocks Online

Nowadays it is quite convenient and easy to trade penny stocks on the web.

The first step to trade penny stocks online is to find a brokerage firm. You need to do some research and compare a number of online brokers, and look at transaction costs, speed of execution, and other relevant factors. It is critical to find a good broker who specializes in penny stocks and offers you great service,

Best CFD Brokers in Australia

The best CFD Brokers in Australia include IG Markets, International Capital Markets, MF Global Australia Limited, City Index, Macquarie CFDs, to name a few.

IG Markets is Australia’s number one CFD provider. According to the Investment Trends May 2010 CFD Report, 29% of CFD traders choose IG Markets as their main provider vs. 20% for the next largest provider. It is also the Winner of Best CFD

Monday, July 11, 2011

Advantages and Disadvantages of Mutual Funds

What are the advantages and disadvantages of investing in mutual funds for investors?

Mutual funds offer several advantages over direct investing in individual stocks or securities, such as the follows:
1) Using mutual funds can help you diversify your portfolio with minimum investment.
2) Mutual funds are managed and supervised by professionally qualified fund managers who are in a better

A Trading Plan Increases Your Success As a Share Trader

A properly constructed trading plan is your road map to trading success. It is absolutely essential to have a written, well-defined trading plan before you begin trading in the share market.

Without a plan, you will be likely to make mistakes and get distracted by just anything that comes along. To increase your chances of success, you need to develop a good trading plan, stick to it and set

Sunday, July 10, 2011

5 Methods of Share Issues

Following are the five common methods of share issues:

1) Public Issue - This involves a corporation making an invitation to the general public to subscribe or purchase its shares. For instance, a listed company made a public issue of 1,000,000 New Ordinary Shares of $1 each at an issue price of $1.20 per ordinary share payable in full on application.

2) Offers for sale - This method involves a

Types of Equity Funds

An equity fund (or stock fund) invests in equities such as common and preferred shares. Equity funds are considered to be the more risky than most other types of funds but they provide higher returns to investors.

There are many different types of equity funds, such as as the follows:

1) Aggressive Growth Funds: This type of funds invests in small companies and businesses that are expected to

Saturday, July 9, 2011

The Secret to a Hot Stock Pick

A successful investor should learn how to find hot stock picks to make good money on investing. There is a lot of information on the web available free of charge. It is advisable to find a reliable website that provides you with daily stock tips and stock picks that are based on technical analysis not on guesswork.

Another great way to start searching for hot stock market picks is by using

How to Buy Stocks Easily

Are you thinking of buying stocks for long term investment? These days, you can easily buy and sell stocks through a discount brokerage, a full-service discount brokerage, or a traditional brokerage.

If you want to buy stocks online, then you need to set up an account with an online brokerage firm. When you login to your account, you can easily buy stocks online. For new beginners and those who

Friday, July 8, 2011

How To Invest In Mutual Funds

A mutual fund is a very popular type of investment that pools investors' money to make multiple types of investments including stocks, bonds, money market instruments and other securities.

Trading mutual funds can be done through placing orders with a broker or contacting the fund companies directly. Investors can purchase the funds from a discount brokerage firm that handles different families

Stock Market Investment For Beginners

Investing in the stock market can be extremely lucrative but it can also be very risky and costly for those who are not well prepared. First of all, beginners need to know what the stock is and its associated features. Understanding the basics of the market and knowing how stock market works is a key to success for new beginners.

Stocks (also known as equities or shares) represent ownership in a

Thursday, July 7, 2011

Types of Bond Mutual Funds

A bond mutual fund is an investment scheme that invests in bonds and other debt securities with the purpose of providing income through dividends or as a balance to a portfolio.

Following are the different types of bond mutual funds to choose from, depending on your risk tolerance:

1) Corporate Bond Funds: These are made up of a selection of bond issued by different corporations. Most corporate

Stocks Vs Bonds

What is the difference between investing in stocks and bonds? This is one of the most frequently asked questions by new investors. There are many differences between these two types of investments, which are listed as follows:

Stocks versus Bonds:

1) Investing in stocks is considered more risky than investing in bonds.

2) While buying stock makes you part owner of the corporation, buying bonds

Wednesday, July 6, 2011

Cheapest Stock Trading For Maximum Earnings

Finding the cheapest stock trading sites or services is a key part of being a successful trader. Of course, you do not want to waste your hard earned money on unnecessary charges and fees. If you trade often, commissions can add up very fast, therefore you need to find ways to cut down the peripheral costs so that you can spend your money on stocks themselves, not trading fees.

Obviously,

Different Types of Mutual Funds

There are various types of mutual funds available to individual investors:

1) Money market fund: This is an open-ended mutual fund that invests in short-term debt securities. It has lower risks as compared to most other investments.

2) Stock fund (or equity fund): This is a fund that invests in equities (common and preferred shares).

3) Bond fund: This is a collective investment scheme that

Tuesday, July 5, 2011

Why Invest in Bonds?

Bonds are very similar to bank loan. Investing in bonds means that you are loaning your money to a corporation or government. Bonds are debt, whereas stocks are equity. If you buy stocks, you will become an owner in a corporation.

Investors can choose to invest in short, medium or long term bonds. Longer-term bonds (with maturities of 10 years or more) tend to pay higher interest rates because

Fundamental Analysis Ratio For Stock Picking

Fundamental analysis is a valuation method used to determine the value of a stock by using financial and economic analysis. It is very important for traders and investors to analyze financial data in detail in order to make the right stock picking decision. Many investors use fundamental analysis or in combination with other tools to evaluate and choose stocks to invest in.

Following are some of

Monday, July 4, 2011

Learn Swing Trading

Swing trading is a style of trading stocks that attempts to capture short-term trading opportunities in the market. The other two main styles of trading are: buy and hold trading, and day trading. Buy and hold is a long-term investment strategy usually involves trades being held for several weeks to months and sometimes even years. In day trading, traders usually do buying and selling on small

Disadvantages of Convertible Bonds

Convertible bond is a debt security that can be converted into the common stock of the issuing company at a later date, subject to certain restrictions. This type of investment can offer some disadvantages / drawbacks to the issuers and investors, such as the follows:

1) A convertible bond is riskier. If the issuing company goes into bankruptcy, the holder of the bond has a lower priority claim

Sunday, July 3, 2011

Market Timing Strategy of Buying Stocks

A successful timing strategy will make good returns and exit losses quickly. This requires an investor to know when to buy and sell the stocks in the market. It is very common that investors like to use spreadsheets, charts, and graphs to analyze and find the right timing for buying stocks.

There are market timing strategies that work! Market timing often looks at various moving averages such as

Return on Equity (ROE) Ratio Analysis

Definition: Return on Equity (ROE) ratio (also refereed to as return on net worth) measures the amount of profit that a company generates through the use of shareholders' equity (also known as net assets or assets minus liabilities).

Formula:

Return on Equity Ratio = Net income after tax / Average shareholders equity
Or,
Return on Equity has three ratio components:
ROE = Profit Margin * Asset

Saturday, July 2, 2011

Best Place To Buy Mutual Funds

Consumer Reports MoneyAdvisor ranked Scottrade as the No. 1 place to buy mutual funds online. In addition, Kiplinger's Personal Finance magazine named Scottrade the Best Mutual Fund Selection for 2004, recognizing the firm's first-class service, wide selection of no-load mutual funds, low fees and quick response times.

Scottrade offers one of the largest selections of mutual funds in the

Basic Investor Guide to Stocks and Bonds

This basic investor guide will look at the ways you can make money with stocks and bonds. Investing in stocks is for those who want to get higher returns and are willing to accept risks. Investing in bonds is for those who want to get higher interest with relatively lower risk compared to stock investing.

Stocks (or shares) represent part ownership in a corporation, and are traded on the stock

Friday, July 1, 2011

Understand Equity Market - Common Stocks

Common stocks (ordinary shares or equity shares) are the most common form of stocks held by the public in the market. This is a security that represents ownership in a corporation.

Facts about common stock:

1) Common stockholders have the right to control the company through their votes. They have the right to elect board of directors or to remove the directors from office.

2) There is no

Stock Market Basics - What Is A Stock?

A stock represents ownership of a part of a company. When you buy the stocks, you will receive a stock certificate that shows you own a piece of a corporation. For example, Company ABC issued 1,000,000 shares in total and you owned 10 shares, this meant you owned 1/100,000th of the company. The stock certificate will show the name of the stockholder and the number of shares owned.

As a

Thursday, June 30, 2011

Different Types of Bonds

A bond is a debt security that is run by the government or an agency.

Following are some of the main types of bonds:

1) Corporate Bonds - These are issued by large corporations and have higher yields because there is a higher risk of a company defaulting as compared to government bonds.

2) Government Bonds - These are the bonds issued by government in its own currency. They are usually

Wednesday, June 29, 2011

Stock Option Markets and Contracts

Stock options give the holder the right, but not the obligation, to buy or sell the underlying security at a predetermined price within a fixed period of time. There are two different types of option contracts: put and call options. Exercising stock options is a simple process, you just need to contact your broker and inform them you want to exercise a given option in your portfolio.

The terms

Tuesday, June 28, 2011

Understand Equity Market - Preferred Stock

Preferred stocks (or preference shares) are different from common stocks. They generally do not have voting rights on matters of corporate policy, their dividends are fixed and preference dividends will be paid prior to common share dividends.

Generally, there are four different types of preferred stock: participating preferred stock, cumulative preferred stock, non-cumulative preferred stock,

Monday, June 27, 2011

How to Buy and Sell Shares Online

Buying shares online is typically cheaper than going through a traditional stock broker to buy and sell stocks, and thus you can save some money to purchase more shares.

Learning how to buy and sell shares online is quite easy, see below for more information:

1) The first step to buying shares online is to get registered with an online brokerage company. There are many popular online

Sunday, June 26, 2011

Difference Between NYSE And NASDAQ

The New York Stock Exchange (NYSE) is the largest stock exchange in the world. In 2010, the NYSE listed the largest U.S. IPO of 2010, General Motors, which raised $16 billion and facilitated the largest secondary capital raise in history with the $70 billion secondary offering by NYSE-listed Petrobras (NYSE: PBR).

NASDAQ is the stock exchange for industry leaders, recognized as one of the

Saturday, June 25, 2011

Tips For Selecting a Good Stock Market Report

In this volatile stock market it is very important to get a good stock market report with the latest trading news.

A stock market report is a valuable tool which tells you whether a company share is worth buying/selling and when to buy. It provides a summary of the recent news of stock market sectors and industries, stock groupings such as the NASDAQ average, Dow Jones Industrial Average, etc.

Friday, June 24, 2011

Redemption of Shares

Meaning of Redemption of Shares: A company can purchase its own shares in the open market if so authorised in the articles of association. These can be ordinary or preference shares. One of the main reasons for buying back own shares is to buy out a troublesome shareholder.

Shares can be redeemed in the following ways:

(1) Purchase of own shares out of the proceeds of new share issue:
Transfer

Thursday, June 23, 2011

Introduction to Stock Trading - A Few of the Basics

It is important to learn a few basic things about stock investment before you start trading.

The most basic investment strategy to make money is to Buy Low and Sell High. It is always best to buy stocks at a lower price and sell them when the price goes up. However it can be difficult to determine whether a stock's price will go up, down or sideways.

Stock trading can be done through a

Wednesday, June 22, 2011

Asset Management Firms in South Africa

The leading asset management firms/companies in South Africa include Coronation Fund Managers, Anglorand Capital, Capricorn Capital Partners, Old Mutual Investment Group (SA), among others.

Coronation Fund Managers is one of the largest asset management companies in South Africa. The firm has offices in South Africa, Botswana, Swaziland, Ireland and the United Kingdom. It also has a presence in

Tuesday, June 21, 2011

Top Largest Banks in Texas

The top largest banks in Texas (USA) are Frost Bank, Woodforest National Bank, Comerica Bank, Prosperity Bancshares, Amegy Bank of Texas, among others.

Founded in San Antonio in 1868, Frost Bank is the largest Texas-based financial institution that operates only in Texas. In 2008, Frost was the first bank in the nation to turn down federal funding under the Troubled Asset Relief Program (TARP)

Monday, June 20, 2011

Investment Banks in Italy

The leading investment banks in Italy include Mediobanca, Banca IMI, Banca Akros, J.P. Morgan, among others.

Mediobanca is the leading investment bank in Italy, offering high-quality advisory services and providing finance in all its various forms, from more traditional bank credit to the most sophisticated solutions available on capital markets. Its clients include some of the leading business

Sunday, June 19, 2011

Private Equity Firms in Brazil

GP Investments and AG Angra Investimentos are amongst the leading private equity firms in Brazil.

Founded in 1993, GP Investments is a leading private equity firm in Latin America. It was the first private equity firm to go public in Latin America and also the first private equity company in the world to issue perpetual bond. It is the oldest private equity firm in Brazil, founded in 1993.

AG

Saturday, June 18, 2011

Top Banks in Pennsylvania

The top largest banks in Pennsylvania (USA) are Sovereign Bank, Citizens Financial Group, National Penn, First National Bank of Pennsylvania, Fulton Bank, among others.

Sovereign Bank is one of the largest banking institutions in the Northeastern U.S., and is part of Santander Group. It offers a broad array of financial services, including retail, business, and corporate banking; cash management

Friday, June 17, 2011

Fastest Growing Banks in India

DBS India - It was awarded the coveted distinction of being 'India's Best Small Bank' and 'India's Fastest Growing Small Bank' as per the Business Today-KPMG Best Bank Rankings 2010. This distinction was further reinforced when Businessworld - PwC in their annual survey of India's Best Banks 2010 acknowledged DBS as the 'Fastest Growing Small Bank' (Balance sheet size less than Rs.30,000 crore).

Accounts Payable Turnover Ratio Analysis

Definition: Accounts Payable Turnover Ratio shows how many times trade payables turnover during an accounting period. A lower ratio may indicate that the firm is having difficulty to pay its creditors.

Formula:
Accounts Payable Turnover Ratio = Cost of Goods Sold / Average Accounts Payable

Example:
Makemoney Ltd has the following data:
Trade creditors at start of year: $10,000
Trade creditors

Thursday, June 16, 2011

Return on Shareholders Funds (ROSF) Ratio

Definition: The Return On Shareholders Funds (ROSF) ratio is a measure of the profit for the period which is available to the ordinary shareholders with the ordinary shareholders' stake in a business.

Formula:
Return On Shareholders Funds = ((Net profit after taxation & preference dividend) / (Ordinary share capital + Reserves)) * 100%

Example 1:
If the net income of PPC Ltd is $80,000 whereas

Wednesday, June 15, 2011

Days in Accounts Payable Ratio

Definition: Days in Accounts Payable shows how many days it takes to pay trade payable.

Formula:
Days in Accounts Payable = (Average Accounts Payable / COGS) * 365 days
Or,
Days in Accounts Payable = 365 Days / Accounts Payable Turnover

Example 1:
If credit purchases is $77,000; purchases returns $7,000; opening stocks $2,000; closing stocks $3,000; Average Accounts Payable $8,000.
Then,
Cost

Tuesday, June 14, 2011

Sales to Total Assets Ratio Analysis

Definition: Sales to Total Assets ratio indicates how efficiently the firm generates sales revenue on each dollar of assets. It is defined as the total assets divided by the turnover of the firm.

Formula:
Sales to Total Assets = Sales / Total Assets

Example:
BCD Company has the following information:
Total sales $500,000
Sales returns $20,000
Fixed Assets (Net book value) $180,000
Cash $30,000

Accounts Receivable Collection Period

Definition: Accounts Receivable Collection Period (also known as Days in Receivables) shows the average number of days it takes to collect all accounts receivable.

Formula:
Accounts Receivable Collection Period = (Average Accounts Receivable / Net Credit Sales) * 365 Days
Or,
Days in Receivables = 365 Days / Accounts Receivable Turnover

Example:
The following information relates to XYZ Company

Monday, June 13, 2011

SG&A to Sales Ratio

Definition: SG&A to Sales is the ratio of selling, general and administrative costs to sales. Selling, general, and administrative (SG&A) expenses represent most operating expenses including marketing costs, employee salaries, pension costs, insurance, etc.

Formula:

SG&A to Sales Ratio = (Selling, General & Administrative Expenses) / (Sales)

Example:
CPM Ltd has the following data:
Sales

Sunday, June 12, 2011

Accounts Receivable Turnover Ratio Analysis

Definition: Accounts Receivable Turnover Ratio calculate the number of times that trade receivables turnover during the accounting period. The higher the ratio, the faster the business is collecting its receivables.

Formula:

Accounts Receivable Turnover Ratio = Net Sales / Average Accounts Receivable

Example 1:
Total sales (include cash sales of $10,000): $70,000
Accounts Receivable: $50,000

Saturday, June 11, 2011

COGS to Sales Ratio

Definition: The cost of goods sold (COGS) to sales ratio shows the percentage of sales revenue used to pay for expenses which vary directly with sales.

Formula:

COGS to Sales ratio = Cost of Goods Sold / Sales

Example 1:
BPP Ltd. has cost of sales $100,000, sales for the year $200,000, sales returns $80,000. Then,
 Net sales = 200,000 - 80,000 = $120,000
 COGS to Sales ratio = 100,000 /

Friday, June 10, 2011

Cash Flow to Debt Ratio Analysis

Definition: Cash Flow to Long Term Debt Ratio compares the operating cash flow of a firm to its total debt (which includes short-term debt, the current portion of long-term debt and long-term debt). This indicates the firm's ability to cover total debt payment with its cash flow generated from operating activities.

Formula:
Cash Flow to Debt = Cash flow / Total debt

Example 1:
Golden Industries

Sales Growth Ratio Formula & Analysis

Definition: Sales Growth Ratio/Rate is a measure of the percentage increase in sales between the two time periods.

Formula:

Sales Growth Rate = (Current month's sales - Last month's sales) / (Last month's sales) * 100
Or,
Sales Growth Rate = (Current Year's sales - Last Year's sales) / (Last Year's sales) * 100

Example 1:
Sales in 2008 = $700,000
Sales in 2009 = $900,000
Sales Growth Rate = (

Thursday, June 9, 2011

Top Banks in Oklahoma

The top largest banks in Oklahoma (US) are BancFirst, Bank of Oklahoma, MidFirst Bank, First United Bank, SpiritBank, among others.

BancFirst is Oklahoma's largest state-chartered bank. The Company was recognized for the third consecutive year as one of America’s Best Banks by Bank Director magazine and has been ranked 11th among the largest publicly traded banks and thrifts nationwide.

Bank of

Sales to Current Assets Ratio

Definition: Sales to Current Assets Ratio is used to measure how well a company is making use of its assets in generating sales revenue. A high ratio may indicate deficient working capital.

Formula:
Sales to Current Assets = Net Sales / Total Current Assets
(Note: Current assets include Cash, Bank, Marketable Securities, Accounts Receivable, Inventories, Prepaid Expenses)

Example:
Euro Company

Wednesday, June 8, 2011

Top Asset Management Firms in Singapore

Following are the top largest asset management companies/firms in Singapore:

DBS Asset Management Ltd (DBSAM) - It is one of the largest and most experienced asset management companies in Singapore and South East Asia. The firm delivers effective investment management solutions for Asia-focused clients that cover a wide spectrum of asset classes, with core competency in Asian fixed income, Asian

Private Equity Firms in Germany

The leading private equity firms in Germany include AXA Private Equity, Deutsche Beteiligungs AG, HANNOVER Finanz Group, to name a few.

AXA Private Equity is a diversified private equity firm with an international network across Europe, North America and Asia. It has offices in Frankfurt, Paris, London, New York, Singapore, Milan, Zurich, and Vienna. The international offices foster synergies

Tuesday, June 7, 2011

Internal Rate of Return (IRR) Examples

Definition: The Internal Rate of Return (IRR) method is used in capital budgeting to compare the profitability of investments. It is also known as the discounted cash flow rate of return (DCFROR) or the rate of return (ROR). IRR is the discount rate that gives a net present value of zero.

Formula:
IRR = lower discount rate + (NPV at lower % rate / distance between 2 NPV) * (Higher % rate - Lower

Top Banks in Oregon

The top largest banks in Oregon (US) include Umpqua Bank, West Coast Bank, Bank of the Cascades, Pacific Continental Bank, South Valley Bank & Trust, among others.

Umpqua Bank, a subsidiary of Umpqua Holdings Corporation, has been ranked 25th on the 14th annual “100 Best Companies to Work For” list (FORTUNE magazine). It is the only Oregon company and community bank to make the list. Umpqua Bank

Top Venture Capital Firms in Canada

Following are the top venture capital firms in Canada:

GrowthWorks - It is Canada's leader in venture capital investing, based on dollars invested by managed venture capital funds during the period January 1, 2010 to January 1, 2011 outside of Quebec and excluding investments by government and government agencies. The firm managed funds invest in small and medium-sized Canadian businesses with

Monday, June 6, 2011

Net Working Capital to Total Assets Ratio

Definition: Net Working Capital to Total Assets ratio is defined as the net current assets (or net working capital) of a corporation expressed as a percentage of its total assets.

Formula:
Net Working Capital to Total Assets = (Net Working Capital / Total Assets) * 100%
(Note: Net Working Capital = Current Assets - Current Liabilities)

Example 1:
If a company has total amount of current assets

World's Most Profitable Banks

The best and most profitable banks in the world are the Industrial and Commercial Bank of China, China Construction Bank Corporation, Santander Central Hispano, BBVA, HSBC, among others.

The Industrial and Commercial Bank of China (ICBC) is the most profitable banks in the world based on 2008 earnings as per The Banker magazine, followed by China Construction Bank Corporation.

Based on

Advantages and Disadvantages of IRR

Internal Rate of Return (IRR) is the discount rate that makes the net present value of all cash flows from an investment project equal to zero.

Advantages of Internal Rate of Return:

1) This technique gives equal importance to all the cash flows. We just need to identify the point at which the present value of cash inflow is equal to present value of cash outflow.

2) It is a good method of

Sunday, June 5, 2011

Best Performing Banks in India

Indian Bank - Government of TamilNadu has conferred the Best Performing Bank Award to Indian Bank for the outstanding achievement under Self Help Group (SHG). It also received the Best Performer Award for Micro-Finance activities in Tamil Nadu and Union Territory of Puducherry from NABARD.

Canara Bank - The Bank occupies a premier position in the comity of Indian banks. It was named Best

Return on Net Assets (RONA) Ratio Analysis

Definition: Return on Net Assets (RONA) is used to measure the financial performance of a company, calculated by taking the net income and dividing it by the quantity of its fixed assets and net working income. The higher the ratio, the better the performance.

Formula:

Return on net assets = Profit after tax / (Fixed assets + net working capital)
Or,
RONA = Net income / Net assets
(Note: Net

Advantages and Disadvantages of ARR

Accounting rate of return (ARR) is a method of comparing the average profits you expect to the amount you need to invest. For instance, if a project requires an average investment of $50,000 and is expected to produce an average annual profit of $2,000, the ARR would be: 2,000 / 50,000 = 4%.

Advantages of using Accounting rate of return:

1) The main advantage is that it is easy to understand

Saturday, June 4, 2011

How To Buy Good And Cheap Stocks

Many investors like to invest in "cheap" stocks in the market because they can pick up a lot of stocks for little money only. However, most of the young stock market investors do not realize that the stocks they bought cheaply belong to a company involved in bad situation with poor management. You should avoid these kinds of stocks even how cheap they are!

How to buy cheap stocks? Stocks are

Inventory Conversion Ratio Analysis

Inventory Conversion Ratio indicates the additional amount of borrowing that is available upon the inventory being converted into receivable.

Formula:
Inventory Conversion Ratio = (Sales x 0.5) / Cost of sales
Inventory Conversion Period = 365 / Inventory Turnover Ratio

Example 1:
Company ABC has an Inventory Turnover of 8.5, and therefore the Inventory Conversion Period = 365 / 8.5 = 42.9 days

Accounting Rate of Return (ARR) Examples

Definition: Accounting rate of return (ARR, also known as average rate of return) is used to estimate the rate of return for an investment project. The higher the ARR, the more attractive the project is. If the ARR is higher than the minimum standard average rate of return, then we will accept the project. However, this technique does not take into account of the time value of money.

Calculation

Friday, June 3, 2011

When Is The Best Time To Buy Stocks?

Finding the right time to buy stocks is a key to success in the stock market. One of the basic principles of stock investing is to buy low and sell high. The best time to buy stocks is when the prices are as low as they will be. Following are the key factors and tips that you need to look at when finding the best time to buy stocks and shares:

1) The best time to buy stocks is during a recession

Contribution Margin Ratio Example

Definition: Contribution Margin Ratio (CM Ratio) is the percentage of contribution over total revenues.

Formula:
Contribution Margin Ratio = (Price - Variable cost per unit) / price
OR = Total contribution margin / Total revenue
(Note: Contribution margin = sales price - variable costs)

Example 1:
If the price of a product is $300 and the unit variable cost is $250, then the unit contribution

Operating Cash Flow Per Share

Definition: Operating cash flow per share is used to measure a company's financial strength and is widely used by financial analysts in valuing stocks. It gives a better guide as compared to the reported earnings per share (EPS) as earnings data can easily be manipulated while cash flow is more likely to be accurate.

Formula:

Operating cash flow (OCF) per share = (Operating Cash Flow -

Thursday, June 2, 2011

How To Find Stocks With High Dividends

Invest in stocks with high dividends will sustain you when the market is not doing well or in a downtrend. It is a great way to build long-term wealth as you will benefit from the dividend payments plus any appreciation in the overall price of the stocks.

Following are the tips and ways on how to find stocks that pay high dividends:

1) Find a website with searchable stock information such as

Price to Sales Ratio Formula & Example

Definition: Price to Sales Ratio (PSR or P/S ratio) is calculated by dividing the company's market cap by the company's revenue; or, dividing the stock price per share by the revenue per share. It indicates how much investor paid for a share compared to the sales generated (per share) by the company. A lower ratio is considered a better investment as the investor is paying less for each unit of

Cash Flow Ratios Analysis & Formula

Cash Flow Ratios are used to assess the cash position of the business. Following are the main cash flow-based financial ratios and the calculations:

Formula:
1) Cash Flow to Assets Ratio = Cash flow from operations / Opening assets + Closing assets / 2
2) Price to Cash Flow Ratio = Market price per share / Cash flow per Share
3) Free Cash Flow Ratio = Cash from operations - dividends paid - (

Wednesday, June 1, 2011

Why Do Stock Prices Go Up And Down?

What makes stock prices go up and down? Share prices go "up" and "down" every day because of “supply and demand”. If more people want to buy than sell a stock, this will drive up the share price. Conversely, if more people want to sell than buy a stock, there will be greater supply than demand, and the share price will fall.

Here we will look at the various reasons that cause investors to want

Dividend Per Share (DPS) Calculation

Definition: Dividend Per Share (DPS) ratio relates the dividends announced for the year to the number of shares issued for that year. It is an indication of the cash return that shareholders receive from holding shares in the listed company.

Formula:
Dividend Per Share (DPS) = Dividends paid to equity shareholders  / Number of issued equity shares

Example 1:
Bronze Ltd announced a total of

How to Identify Cheap Hot Stocks to Make You Rich!

If you could identify cheap hot stocks while they are just beginning to warm up, you would have the opportunity to make huge profits and get rich. Following are the most important factors and tips that you need to look at when trying to find cheap hot stocks:

1) Check the company background: Before purchasing a new share, you should check the company's history and financial stability. Look for a

Tuesday, May 31, 2011

Cash Dividend Coverage Ratio

Definition: Cash Dividend Coverage Ratio is used to assess the firm`s ability to pay dividends and is calculated by dividing cash flows from operating activities by dividends paid. A higher ratio is better and it indicates that the firm has stronger ability to pay cash dividends.

Formula:
Cash Dividend Coverage Ratio = Operating cash flow per share / dividend per share
Or = Net cash flow from

Market Capitalization Calculation

Definition: Market capitalization (often referred to as market cap) is a measure of the size of a company. It tells you the value of the shares of a company. Investors often use the market cap to determine how big a company is. Traditionally, companies are divided into three groups: small cap, mid cap, and large cap. Small Cap refers to stocks with market cap of less than $1 billion. Mid Cap

Monday, May 30, 2011

Cash Turnover Ratio Analysis

Definition: Cash Turnover Ratio shows the number of times that cash turnover in a year. A lower ratio may indicate the inefficient use of working capital.

Formula:
Cash Turnover = Cost of sales / Cash
Or,
Cash Turnover Ratio = 365 days / Cash balance ratio

Example 1:
Info Ltd. has the following data:
Opening stock $20,000
Closing stock $10,000
Purchases $6,000
Purchase returns $1,000
Cash

Market to Book Ratio Analysis & Example

Definition: Market to Book Ratio (or price book ratio, P/B) is used to measure a company's market price in relation to its book value.

Formula:
Market to Book Ratio = Market Price Per Share / Book Value Per Share
Or,
Market/book ratio = Market price per stock / Net asset value per stock
Or,
P/B ratio = Market capitalization / Book value of equity

(Note: Book Value Per Share = Book Value for

Creditors Turnover Ratio Formula & Example

Definition: Creditors Turnover Ratio (also known as Accounts Payable Turnover Ratio) is calculated by taking the total purchases made and dividing it by the average accounts payable during the period. It is used to measure the rate at which a firm pays off its suppliers.

Formula:
Creditors Turnover Ratio = Credit Purchases / Average Trade Creditors
Or,
Accounts Payable Turnover (APT) Ratio =

Sunday, May 29, 2011

3 Tips For Choosing Stocks To Invest

Stock trading is the most popular investment option and it can provide you with big returns provided that you make your choices carefully and smartly.

Following are the most important tips for choosing the right stocks to invest and make profits:

1) You need to take some time to compare the historical trends of companies and industries. Examining the historical trends will give you an idea of

Stock Shares Aren't Equal

Stock represents an ownership share in a company. Not all shares are created equal. Before making an informed decision, you need to understand the terms that define shares. There are a number of different types of shares out there:

Restricted shares are company stock that are subject to certain restrictions and are not fully transferable until certain conditions have been met. These shares

Saturday, May 28, 2011

How to Choose a Good Stock

The stock market has the potential to bring wealth to investors and traders around the world. However, you can only make huge profits if you are able to find a good stock and to make the best use of your money. How to choose a good stock? This is one of the most frequently asked questions by many investors. Following are the most important tips and things to look for when choosing a good quality

How to Trade Stocks (For Beginners)

It takes time for a new beginner to learn how to trade stocks and make money in the stock market. To be a successful stock trader, you need to find out how the stock market works and learn about the stock trading process.

Stocks are listed and traded on the stock exchanges. Primarily there are two types of stock markets, namely the primary market and the secondary market. In the primary market,

Factors Affecting Share Prices

What are the major factors that affect share prices in the stock market? This is one of the most frequently asked questions by stock market participants. There are varied internal and external factors affecting the price of a share. Internal factors are those that depend on the firm such as share bonuses, stock split, company dividends, etc. External factors are those which are beyond the control

Stock Investing Basics Tips

It is important to understand the basics and fundamentals of investing if you want to increase your chances of success and avoid losing money in the stock market. Investment basics like dividend yield and the Price to Earnings (P/E or PER) ratio are powerful tools to enhance your stock analysis.

The Dividend Yield is a financial ratio that tells you what percentage a company pays out to its

Friday, May 27, 2011

10 Secrets of Success in Stock Market

1) Diversify your investment portfolio intelligently. You can invest a certain portion of your portfolio in other asset classes such as gold, bonds, and cash alternative. So even if one investment fails, the other investment in your portfolio will balance out the loss. Don't put all your eggs in one basket!

2) Placing a trailing stop order is another secret of stock market success. Trailing stop

How to Analyze Stocks (For Beginners)

If you are a beginner in stock market investing, then you need to learn how to analyze stocks or shares. To decide on which company to invest in, you need to take a look at how well the company is doing now, how it has performed in the past, and what it is planning to achieve in the future.

Following are some useful tips for analyzing stocks:

1) The first thing you need to do is to find out

How to Predict Future Price of Stocks

Stock prices are highly volatile and can be affected by the company's performance as well as many other factors. To make a lot of money in the stock market, you should learn how to predict future stock prices. Stock predictions can be based on the following methods:

1) Use price earnings (P/E) ratio and predicted earnings per share to predict the future price of stocks. If you have the predicted

Stock Trading Mistakes and How to Avoid Them

Following are the most common mistakes made by stock traders and the ways to avoid making them:

1) Many stock traders make the mistake of not investing when the time is right. To make money in the stock market, you will have to grab at any opportunity that comes your way. Finding the right time to invest is a key to success. An investment advice: The best time to buy stocks is during a recession

Thursday, May 26, 2011

7 Things That You Need to Know About Stocks Before You Invest

What you need to know about stocks? Following are the 7 key things that you need to understand before you invest your hard earn money in the stock market:

1) Shareholders are the actual owners of the company and are entitled to a share of the company's profits in the form of dividends. To be a successful investor, you should look for companies that are major players in the industry and has good

Buy Low Sell High Strategy

Buying stocks at a low price and selling them at a high price is how you make money in the stock market. The goal of all stock traders is to buy low and sell high, but the problem is: when prices are low enough to begin with and high enough to sell?

How do we know whether share prices are low or high? To answer this, the price-to-earnings (P/E) ratio provides context by comparing the share

10 Tips For Investing In Penny Stocks

Following are the useful investment tips and advice for buying penny stocks:

1) You need to gain as much knowledge as possible about penny stocks and learn strategies trading penny stocks successfully. There are certain common investment mistakes that you want to do your best to avoid.

2) Subscribe to online stock newsletters which can provide you with a list of hot penny stocks, investing

Things to Consider When Choosing a Stock

The stock market is a good way to make money and build wealth but picking the right stocks can be a difficult task, especially for new beginners. You should take the following things into consideration when choosing a stock to buy:

1) Performance History: You should look at the past performance of a stock and avoid choosing the stocks that have consistently performed very poor as compared to

Wednesday, May 25, 2011

When to Sell Stocks and Shares (Exit Strategy)

Knowing when to sell your stocks and shares is crucial to your success as a stock trader. This is called share exit strategy, which is the most difficult decision any investor has to make. With a good stock exit strategy, you will exit earlier and for a better price.

Generally, there are five basic share exit strategies in the stock exchange:

1) Price exit strategy: This strategy is based on

Buy and Hold Stock Strategy

"Buy and hold" is one of the most common types of stock investment strategies. This is mainly based on the concept that the stock market will give you a certain rate of return in the long run, regardless of price fluctuations in the short term. The reason is that the economy will grow overtime and most investments will end up providing you with a good return, even if they seem to decline in value

Tuesday, May 24, 2011

How To Make Money With Penny Stocks? An Easy to Follow Guide

Penny stocks/shares are traded at extremely small values but with significant growth potential. If you are a more risky investor, you can make a lot of money through buying and selling penny stocks. It is always better to do some research and get as much advice as possible from those who have trading experience with these kinds of shares.

Following are the most important tips and guides to help

How to Pick Winning Stocks

Picking winning stocks is not an easy task, you need an appropriate trading strategy and tool to help you to choose the right companies to invest in, and you must learn how to read the market trend in order to predict the correct market timing. With best performing stocks you stand a good chance to make above average returns.

Some of the useful tips to picking winning stocks:

1) Find out the "

Monday, May 23, 2011

Total Assets Turnover Ratio Analysis

Definition: Total Assets Turnover Ratio (TATR) is used to measure the firm's ability to utilize its assets to generate sales. It is an indication to the firm's operation efficiency. A lower ratio means inefficient utilization of assets.

Formula:
Total Assets Turnover Ratio = Net Sales / Total Assets
Or,
TATR = Net Sales / Average Total Net Assets

Example 1:
APP Ltd has the following information

Sunday, May 22, 2011

How to Short Sell a Stock

How to Sell Short in the Stock Market? This is just like selling a stock that you do not own. Because you don't own the stock, you need to borrow it from your stockbroker and then sell it to someone else, later you will have to buy it back and return the stock to your broker.

Short selling is a technique used by stock traders to take advantage of market declines and to profit from the falling

Saturday, May 21, 2011

How To Choose Penny Stocks

Penny stock investing is about buying low priced stocks (less than $5.00 per share) and selling them to make profits. Penny stocks/shares are also referred to as micro-cap stocks.and are traded Over the Counter (OTC) in the USA. There are many factors to consider when you start trading penny stocks in the market, this type of stocks is generally renowned for their “high risk, high reward” profile

Friday, May 20, 2011

Tips For Long Term Success in the Stock Market

Following are some of the useful tips for long-term investment success:

1) Establish a long term goal: The most successful investors in the world have goals in mind. Having a pre-determined goal will help you decide which approach to use in order to achieve success. Long term investment goals can take about three to five years to achieve. You should evaluate the risks and rewards of alternative

Thursday, May 19, 2011

How to Start Online Trading Stocks and Options Successfully

Online trading of stocks and options has opened up the world of trading for many investors. More and more people start online trading as a means of earning extra income or even turn it into a full time living.

First of all, you need to understand the main differences between stocks and options. When you purchase a company's stocks, you are buying a piece of ownership of a company, while options

How to Buy Penny Stocks

Penny stock is a common stock that trades at a very low share price. Where to buy penny stocks? Penny stocks usually do not trade on the major stock exchanges such as the National Association of Securities Dealers (NASDAQ), AMEX, and the New York Stock Exchange (NYSE). Instead they are generally traded at Over-the-Counter Bulletin Board (OTCBB) and Pink Sheets, LLC.

You can buy penny stocks via

How To Choose The Best Stock Broker

Finding the best stock broker is one of the most important decisions you will have to make before you start to trade on the stock market. A stockbroker is a stock market expert who helps the investors in buying and selling the shares of the listed companies. To help you get the best returns from your trading, you will need a good quality broker.

Tips to selecting the best stockbroker:

1) Do

How to Value a Penny Stock - Market Cap

Penny stocks or penny shares are those that trade at very low price and market capitalization. Here you will learn how to calculate market cap of penny stocks:

First you need to find out the total number of shares issued and outstanding as well as the current stock price of the shares. Then, you can calculate the market capitalization of penny stocks by simply multiplying the shares outstanding

Wednesday, May 18, 2011

Top 5 Tips on How Ordinary People Can Start Earning Millions

How do people make millions in the stock market? I am sure that many people dream of making millions of dollars in profits from their trading. Note that you can't get to a million quickly without putting any effort in at all. Following are the top 5 must know tips for new beginners:

1) Don't trust your gut feeling as it isn't always right. Many investors are finding stocks they think will be

Best Penny Stock Brokers

If you plan to trade penny stocks then one of the first steps that you need to take is to find a good penny stock broker. Some of the best and most popular online brokers that will take orders for penny stocks include TD Ameritrade, Scottrade, E-Trade  and Zecco:

TD Ameritrade - It has received many awards and recognition as one of the best online brokers. TD Ameritrade was ranked No. 1 and

4 Tips to Make Money in the Stock Market

Following are the four trading tips that will help you to maximize your money-making potential in the stock market:

1) Stay on top of the latest news: It is important to have the most up-to-date stock news on companies in the stock market. Share prices will go up when there is some good news related to any company. Events such as mergers and acquisitions can have a significant impact on the

Tuesday, May 17, 2011

Venture Capital Firms in Australia

Following are amongst the leading venture capital firms in Australia:

Technology Venture Partners (TVP) - It is the leading venture capital firm in Australia specialising in investment in the information, communication and new media technology sectors. The TVP team has a unique mix of investment, business management and entrepreneurial skills gained from global experience in the US, Europe, Asia

Fixed Assets Turnover Ratio Example

Definition: Fixed Assets Turnover Ratio (FATR) is used to measure how efficiently fixed assets are utilized to generate sales revenue. It is also known as sales to fixed assets ratio. A lower ratio indicates under-utilization of fixed assets.

Formula:
Fixed Assets Turnover Ratio = Sales / Net Fixed Assets

Example 1:
PCK Company has total fixed assets of $25 million at cost and an average

Best Stockbroker for Cost

The Share Centre was awarded the Best Stockbroker for Costs at the Financial Times and Investors Chronicle Awards in November 2009. The award aims to identify the broker who offers the best share dealing service based on value for money. The Share Centre Limited is authorised and regulated by the Financial Services Authority (FSA) and is a member of the London Stock Exchange.

HB Markets offers a

Monday, May 16, 2011

Why You Should Invest In Penny Stocks?

Penny stocks/shares are very cheap stocks and they represent the small cap companies. Why trade penny stocks? Many people like to invest in this type of stocks because they can purchase a large amount for a small price and make a big return with little invested. Following are the top 10 reasons why you should invest in penny stocks:

1) Penny stocks are the easiest way to make money in a short

Best Small Cap Stock Broker

The Share Centre has been voted Best Small Cap Broker by the readers of Shares magazine, recognizing it as the broker who offers the best service for those wishing to invest in smaller companies. The Share Centre was founded in 1990, providing stockbroker services for private investors, together with a range of share-related services for companies, their employees and shareholders throughout the

Sunday, May 15, 2011

Composite Index Number Examples

Definition: A composite index number is formed by combining two or more index numbers, and a weighting is usually given to each of the index in order to calculate the weighted average index number.

Formula:
Composite index = (Total of index * weighting) / Total weighting

Example 1:
The index of prices for transport is 100 compared to a given base year. The index for housing is 160 (compared to

Friday, May 13, 2011

Markup Calculation & Formula

Definition: Markup refers to the percentage added to the cost to get the selling price for a product. It can be expressed as a percentage of cost or in dollars.

Formula:
Markup = (Gross profit / Cost of goods sold) * 100%
Or,
Markup Percentage = (Sales Price - Unit Cost) / Unit Cost

Example 1:
Peter bought an item for $23 and sold it for $28. Calculate the percentage markup.
Solution:
Markup

Wednesday, May 11, 2011

Best Online Stock Broker

What is the best online stockbroker? In the Financial Times/Investors Chronicle Investment Awards, HB Markets plc has been named the Best Online Stockbroker. It is also the winner of other categories including: Best Stockbroker for Cost; Best Stockbroker for Frequent Traders; to name a few.

HB Markets plc (formerly known as Hoodless Brennan plc) is one of the fastest growing independent

Financial Planning Firms in India

The top financial planning firms in India include Sykes & Ray Financial Planners, Bajaj Capital, Veer Consultancy Services, among others.

Sykes & Ray Financial Planners has pioneered fee-based Professional Financial Planning Services in India and is highly regarded as one of the leading Financial Planning companies guiding its clients to fulfill their dreams and achieve financial goals. It has a

Tuesday, May 10, 2011

How to Buy Stocks Without a Broker

The most common way to buy and sell stocks is through a broker, a traditional route of investing in the share market. However you can also invest in stocks without a broker and pay no commission! Look for companies that offer either a direct stock purchase open to all investors or a dividend reinvestment plan for existing shareholders:

1) Direct Stock Purchase Plan (DSPP): You can place your

Best for Frequent Traders

Interactive Brokers earned a rating of 4.5 in 2011 Barron's Awards for "Best for Frequent Traders". Interactive Brokers' headquarters are in Greenwich Connecticut, and it has offices in the USA, Switzerland, Canada, Hong Kong, UK, Australia, Hungary, Russia, India, China and Estonia.

TradeStation Group, Inc., through its brokerage subsidiaries, offers the TradeStation platform to the active

Top 15 Tips For Successful Stock Trading

Learn how to become a successful trader in stock market with the following tips:

1. Successful traders analyze stocks by comparing various reports and charts. Using technical analysis and stock charts can give you a better picture of the effect of buying and selling on stock price.

2. You should search for reliable stock market news sources to keep you informed of what is going on in the market

Monday, May 9, 2011

Best for Options Traders

OptionsHouse has earned a third consecutive ranking as “Best for Options Traders” and was awarded 4½ stars for Trade Experience in Barron’s 2011 annual ranking of top online brokers. OptionsHouse, LLC was founded by PEAK6 Investments, LP in 2005. It utilizes tools and methods derived from PEAK6′s extensive trading platforms; the same state-of-the-art technology used to trade large-scale positions

Strongest Banks in America

The National Capital Bank (NCB) was honored with the distinction of being named among the “20 Strongest Banks in America” (March 2009). NCB has built a reputation for highly personalized customer service and a distinguished record of safety and profitability. It is also ranked as one of the Top 20 Banks in the nation for safety from TheStreet.com and Weiss Ratings.

MidSouth Bank was listed among

Best Options Brokers

Following are the best options brokers in the world:

Goldman Sachs - The Tabb Group's US Options Trading 2009 report found Goldman Sachs to be the top options broker by number of mentions from respondents, with REDIPlus being the No. 1 options trading platform. In addition it has been awarded the 'Best Multi-Asset Trading Service Equities, Futures, Options, Synthetics, FX' at the inaugural

Best Securities Firms

Capital Securities Corporation has been recognized as "The Best Securities Firm" and "Securities Firm with the Best Research Quality" in Taiwan for years by world famous finance professional magazines-"FinanceAsia", "Euromoney" and "Asiamoney". The firm has earned a great reputation for high quality and timely research in the equity markets and been very popular among government agencies,

Sunday, May 8, 2011

Best Futures Brokers

Following are the best futures brokers in the world:

MF Global - It is one of the world’s largest futures and options brokers, with outstanding reputation and leading market presence, and connection to a wide array of counterparties through exchange memberships such as: Australian Securities Exchange (ASX); London Stock Exchange (LSE); BlueNext MCX Stock Exchange; Bombay Stock Exchange (BSE);

Most Active Brokers

In the Risk & Energy Risk Commodity Rankings 2011, Eagle Commodities is ranked 3rd for the most active broker in the 'Europe - crude: Brent Options' market and the ' UK/Europe - products: fuel oil options' market. Eagle Commodities Brokers Ltd is a global brokerage service provider in the energy markets specializing in over-the-counter derivatives within the energy complex. It is authorized and

8 Ways To Reduce Your Investment Risk

Learn how to reduce investment risk and increase your return through the following ways and strategies:

1) Reducing risk through diversification. Invest in different types of stocks instead of buying only one company's stock.

2) Buy stocks from several different industries. Such action can protect you from industry risk, whereby all companies in a certain industry experience a major downturn.

Best Institutional Brokers

Kim Eng was named Best Institutional Broker by Alpha Southeast Asia (2010). Founded in 1972, it is a regional securities powerhouse with successful offices across Asian financial markets. The parent company of the Kim Eng Group, Kim Eng Holdings, was the first stockbroker to list on the Singapore Stock Exchange in 1990 with a pre-IPO market capitalization of S$37 million and post-IPO

Saturday, May 7, 2011

How To Find Undervalued Stocks or Shares

The fundamental way to invest in stock market is to look for stocks which are undervalued and of high potential. There are some financial ratios you can used to calculate the potential value of the stock (intrinsic value) and to justify the investment as overvalued or undervalued.

Following are great investment tips to identify the best undervalued share:

(1) Find the Price/Earnings To Growth (

Best Risk Management House

Euromoney named UBS its 'Best Global Risk Management House' in the 2005 Awards for Excellence. This is the first time UBS has topped this category, which recognizes excellence in providing solutions to clients across all asset classes. UBS focuses on long-term relationships and advice, as well as its commitment to innovation. UBS's award-winning CreditDelta was cited as a particular example of an

Best for International Traders

Interactive Brokers (IB) earned a rating of 4.5 in 20111 for "Best for International Traders", the highest star rating awarded by Barron's. IB provides electronic access to all asset types and products from around the world. Investors can trade assets denominated in multiple currencies from a single IB Universal Account.

MB Trading, a technology-driven, low-commission brokerage specializing in

Price/Earnings To Growth (PEG) Ratio

Definition: Price/Earnings To Growth (PEG or PE/G) is a ratio used to determine a stock's value while taking into account the earnings generated per share, and the company's expected growth. A lower ratio indicates that the stock is undervalued.

Formula:
PEG Ratio = Price per Earnings / Annual EPS Growth
Or,
PEG Ratio = P/E / Projected growth in earnings

Example 1:
Tammy Ltd has a P/E of 30 and

Friday, May 6, 2011

Top 20 Investing Mistakes To Avoid

Following are the top 20 most common investing mistakes which you should avoid:

1) Putting all your money in one type of investment. If you have all your money tied up in a single investment and something goes wrong, you will lose all your money.

2) Another mistake investors make is purchasing stocks before their ex-dividend date and then selling them after the dividend is received. In reality,

Best Direct Access Brokers

Interactive Brokers (IB) received the first prize: Gold for "Best Direct Access Broker" (Trade2win Awards 2007). It provides electronic access to stocks, options, futures, forex, bonds and funds on more than 90 market centers in different countries from one account. IB integrated approach makes it easy to trade global products on multiple exchanges and assets denominated in multiple currencies

Return on Investment Ratio Analysis

Return on Investment (ROI) is a financial ratio used to evaluate the efficiency of an investment or to evaluate how efficiently the firm uses every dollar invested in assets.

Formula:
Return on Investment = (Gain - Cost of investment) / Cost of investment
Or,
ROI = Net Profit After Taxes / Total Assets
Or,
ROI = Net Profit Margin * Total Asset Turnover

Example 1:
If a company has total assets

Best Professional Trading Platform

Interactive Brokers received the Gold (1st prize) for "Best Professional Trading Platform" in the Trade2win Awards 2007. IB provides different trading platforms to accommodate the needs of different trading styles. Customers have free access to both platforms (Trader Workstation and WebTrader) and can log into either one using the same username/password combination.

Trader Workstation is the

Thursday, May 5, 2011

Working Capital Turnover Ratio Analysis

Definition: Working Capital Turnover Ratio is used to measure how effective the working capital is being used by the firm. If the ratio increases, then it means the company is efficiently utilizing its working capital.

Formula:
Working capital turnover ratio = Cost of sales / Average net working capital
Or,
Working capital turnover ratio = Net sales / Net working capital (Note: If cost of