Fundamental Analysis Explained: An Introduction
Fundamental analysis is sometimes considered to be a foundation of solid investing. It helps you determine the underlying health of a company by examining the business' core numbers: income statements, earnings releases, balance sheets, and other indicators of economic health. From these fundamentals, potential investors can evaluate if a stock is under- or over-valued. Fundamental […]
Short Selling Explained: An Introduction
Short selling is very different from owning stocks. It's more complex, carries more risk and requires a higher degree of responsibility on the part of the trader engaging in this practice. Before jumping in, you should understand how short selling works and what rules govern your investments, plus the potential risks and rewards involved. Knowing […]
Short Selling Explained: Risks and Rewards
What is short selling, and what’s in it for traders? Short selling flips the old adage: buy low, sell high. Anticipating that a stock’s price will drop, a short seller performs this action in reverse: first they sell high, then they buy low. The tricky part is that the short seller doesn’t actually own the […]
Short Selling Explained: Trading Strategies
How do you begin short selling as an investment strategy? A number of rules restrict which stocks may be shorted and the necessary conditions for shorting. This means you won’t always be able to short any stock you want, whenever you want. Working with an online brokerage service like Credence Global Bank Invest ensures you have plenty […]
Fundamental Analysis Explained: Balance Sheets
Reading a balance sheet: Assets Balance sheets provide a snapshot of how the company's assets (the value a company takes in) are balanced out against its liabilities (what the company must pay out). When assets equal liabilities plus equity, that's when the statement is said to be in balance. Assets include company resources that are […]
Fundamental Analysis Explained: Cash Flow Statements
The cash flow statement helps investors answer questions like: Is the company generating enough cash needed to fund growth? Is growth outpacing cash generation, requiring additional financing? Is the company generating enough cash to cover its short-term needs? In times of easy credit, companies may be able to patch over cash flow interruptions with interim […]
Trading Stocks for Beginners
Just starting out with stock trading? Great! Before you begin actively trading and investing, educate yourself about how stocks work. Learning the fundamentals of the stock market can help you anticipate change and develop investment strategies to mitigate loss. As a popular security, stocks come with their own set of potential risks and rewards. We’ve […]
Investing in Stocks: A Beginner’s Guide (Part 1)
Buying and selling stocks for investment is no longer the domain of the professional trader. Master the basics of trading first, then you'll be ready to research and manage your own investment portfolio. What are stocks? A stock is a type of security that reflects ownership in a publicly traded company. When companies need to […]
Investing in Stocks: A Beginner’s Guide (Part 2)
Risks and Rewards All trading involves risk, commissions and other fees, and potential tax implications. Before you begin trading, educate yourself about how stocks are traded on the NYSE and NASDAQ markets and how earnings reports, market forces, and company changes can impact stock prices. This knowledge will help you become a more responsible self-directed […]
Investing in Stocks: A Beginner’s Guide (Part 3)
Trading Strategies and Types of Stocks Stocks are issued in two main types: common stock and preferred stock. Some companies go one step further and issue classified shares separated into several classes. Each type of stock has unique benefits and drawbacks. Common stock vs. Preferred stock COMMON STOCK PREFERRED STOCK Lower priority for dividends Nearly […]
