To make profitable investment decisions you need to be able to read and analyze financial statements.The fundamentals of ratio analysis are important skills for any investor, executive/manager, and entrepreneur/small business to grow.Without it, you won't know what your margin profile is, or how leveraged a stock/business is, or even if you're making cash flow. I'll teach you how to analyze any stock or business and be able to tell how it is performing right away. You will learn financial ratios for a variety of uses including:Evaluating margins: Learn how to calculate and interpret gross margin, operating margin and net margin. Determining liquidity: Is the stock about to go bankrupt? Assessing liquidity is important to make sure a stock is solvent in the short term. You'll learn about how to analyze working capital and use the current ratio in your decisions. Assessing debt and leverage: Warren Buffett (along with other popular value investors) like to avoid stocks with large amounts of debt. This is because large debt could result in earnings pressure or even bankruptcy. Learn how to evaluate various debt metrics like debt/equity and debt/EBITDA.Calculating profitability: There's more than one way to evaluate the profitability of a business. Warren Buffett's favorite metric is return on equity (ROE) - which is discussed in the book. But we'll also go over other popular metrics. Measuring activity and efficiency: How long is it taking your business to sell its inventory? How long does it take to collect your receivables from customers? These are all important things to know. I'll teach you how to measure the activity of your working capital to ensure cash flow is optimized. Stock valuation: Never over-pay for a stock/business ever again. I'll teach y 1. Language: English. Narrator: Andrew Li. Audio sample: http://samples.audible.de/bk/acx0/154600/bk_acx0_154600_sample.mp3. Digital audiobook in aax.
Do you want financial freedom? Are you wondering how you can turn your retirement funds into financial stability? This book is going to teach you beginning stock information to help you achieve financial freedom. As a beginner's book, it takes a look at easy topics you can learn quickly and start applying to your trading system. It is not meant for the advanced investor, who has already been trading for several years and is ready to move up in their trading plan. There will be plenty for you to learn after you have listened to this book; the aim is to ensure you have a plan that you can use to start small and be a successful trader. Yes, it will take time and education, but in the end you will be on a better path to financial freedom. Get your millionaire mindset in place and start learning these topics today: How to start small, investing in stocks or mutual funds How to build your portfolio slowly over time Common mistakes Trading psychology You will also learn: A step by step plan for entering and exiting the market Fundamental and technical analysis Risk/reward ratio Risk management techniques 1. Language: English. Narrator: sangita chauhan. Audio sample: http://samples.audible.de/bk/acx0/074259/bk_acx0_074259_sample.mp3. Digital audiobook in aax.
Have you wondered how best you could achieve financial freedom as it always seem impossible? Do you want to have the basic and a more standard information about investments? Do you wish to know the right strategies and the right strings to pull regarding dividend stocks? Or have you tried all the techniques you know and still you’re stuck as to which works perfectly?Then, this guide is all you need to find the financial freedom and knowledge you crave, so keep reading. Dividend investing supplies an opportunity to make a flow of income along with the increase in your portfolio market value from asset recognition. Purchasing stocks that cover dividends may benefit you over time, provided that you take good care to adhere to some guidelines and create smart buying decisions.It isn't important how great the numbers seem if you are assessing a single company within a high-risk business. Be aware that one poor event could wipe out the entire thing. Search for businesses which have a steady income and cash flow. The more secure the cash coming in to pay the money, the greater the payout ratio could be, without causing an excessive amount of worry.In this audiobook, you’ll learn:How to achieve financial freedomWhat are the the techniques and strategies on dividend stocksHow to edge against losses in the market and investments on all scalesHow to study the market behaviorsHow to make viable decisions on the market metricsHow to advance from being a beginner to an advanced investor 1. Language: English. Narrator: Peter Nash. Audio sample: http://samples.audible.de/bk/acx0/180738/bk_acx0_180738_sample.mp3. Digital audiobook in aax.
High Quality Content by WIKIPEDIA articles! The Sharpe ratio or Sharpe index or Sharpe measure or reward-to-variability ratio is a measure of the excess return (or Risk Premium) per unit of risk in an investment asset or a trading strategy, named after William Forsyth Sharpe. he Sharpe ratio is used to characterize how well the return of an asset compensates the investor for the risk taken. When comparing two assets each with the expected return E[R] against the same benchmark with return Rf, the asset with the higher Sharpe ratio gives more return for the same risk. Investors are often advised to pick investments with high Sharpe ratios. However like any mathematical model it relies on the data being correct.
This book discusses on mutual fund industry in detail, the impact of various scrips on the performance of the mutual funds. The book also discusses on some of the tools and concepts to measure performance of mutual funds such as average daily return and risk in stock market to compare with the market indicator, Jenson's ratio, Treynor's ratio, Sharpe s ratio, and Fama's model. In the final stage we also discuss about the Investment priorities of different Investors and evaluate on how investors view mutual funds. Also focuses on the investment procedure of mutual funds, investor s preference regarding mutual funds, and motivational factors of mutual fund investors.
Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Leverage is defined as the ratio of the asset value to the cash needed to purchase it. The Leverage cycle can be defined as the procyclical expansion and contraction of leverage over the course of the business cycle. The existence of procyclical leverage amplifies the effect on asset prices over the business cycle. Conventional economic theory suggests that interest rates determine the demand and supply of loans. This convention does not take into account the concept of default and hence ignores the need for collateral. When an investor buys an asset, he may use the asset as a collateral and borrow against it, however the investor will not be able to borrow the entire amount. The investor has to finance with his own capital the difference between the value of the collateral and the asset price, known as the margin. Thus the asset becomes leveraged. The need to partially finance the transaction with the investor s own capital implies that his ability to buy assets is limited by his capital at any given time.
High Quality Content by WIKIPEDIA articles! The P/E ratio (price-to-earnings ratio) of a stock (also called its "P/E", "PER", "earnings multiple," or simply "multiple") is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower P/E ratio. The P/E ratio has units of years, which can be interpreted as "number of years of earnings to pay back purchase price", ignoring the time value of money. In other words, P/E ratio shows current investor demand for a company share. The reciprocal of the PE ratio is known as the earnings yield. The earnings yield is an estimate of expected return to be earned from holding the stock if we accept certain restrictive assumptions (a discussion of these assumptions can be found here).
The study investigated the effects of investors' sentiment on stock market returns in Nigeria, using a 25-year time series data from 1990-2014. The method of analysis used is multiple regression techniques. Six variables were used to estimate sentiment index data derived from: Nigerian Stock Exchange, Central Bank of Nigeria statistical bulletin, Nigerian Bureau of Statistics, Securities and Exchange Commission. The investors' sentiment predictors used were Consumer Confidence Index, Stock Price, Turnover ratio Dividend Premium, Initial Public Offering and All Share Index proxies to represent sentiments The result of the analysis shows that there is a positive correlation between changes in sentiment predictors and stock market returns, demonstrating that individual investor sentiment affect stock prices. Though, the influence of individual investor sentiment seems to be affected by the force of arbitrage. The study also reveals that bullish sentiment leads to higher market excess returns, while bearish sentiment leads to lower excess return.
This book provides an overview of the risk components of CoCo bonds. CoCos are hybrid financial instruments that convert into equity or suffer a write-down of the face value upon the appearance of a trigger event. The loss-absorption mechanism is automatically enforced either via the breaching of a particular accounting ratio, typically in terms of the Common Equity Tier 1 (CET1) ratio, or via a regulatory trigger. CoCos are non-standardised instruments with different loss-absorption and trigger mechanisms. They might also contain additional features such as the cancellation of coupon payments.Different pricing models are discussed in detail. These models use market data such as share prices, CDS levels and implied volatility in order to calculate the theoretical price of a CoCo bond and its sensitivities, providing the investor with insides to hedge from adverse changes in the market conditions.The audience are professionals as well as academics who want to learn how to risk manage CoCo bonds using cutting edge techniques as well as all the risk involved in CoCo bonds.