Finance

A company’s balance sheet has three major sections, assets, liabilities and stockholders’ equity. Liability represents the total debt of the company and owner's capital represents shareholders’ ownership. Liabilities and owner's capital are the two major sources of financing the assets of a company.Total assets must equal the total liabilities and stockholders equity in … [Read more...] about What is Shareholders’ equity on the balance sheet

Bearish and bullish piercing candlestick patterns are considered as a signal for trend reversal. In a downtrend, a bullish piercing pattern (also called simply the Piercing Pattern) signals a trend reversal to the upside. Similarly, in an uptrend, a bearish piercing candlestick pattern signals a trend reversal to the downside.The Bearish piercing pattern is known as the … [Read more...] about Bullish Piercing Candlestick Pattern Explained

Dark cloud cover candlestick pattern is a bearish reversal pattern formed in an uptrend. Like a bearish engulfing candlestick pattern, Dark Cloud Cover is a two candlestick pattern where in the first one is a bullish candle continuing the existing upward trend, and then the second candle opens above the close of the prior up candle and closes below the midpoint of the 1st up … [Read more...] about Dark Cloud Cover – Bearish reversal candlestick pattern explained

Imagine you lend money to a friend. Before giving it, you naturally wonder — will they be able to repay me soon if needed? Investors think in a very similar way when they look at a company. One simple tool they use is the current ratio, which helps them understand whether a company has enough short-term money to pay its short-term bills.In this guide, we will understand the … [Read more...] about Current Ratio Explained: How Investors Check a Company’s Financial Strength

If you run a small business — even a simple shop or home-based manufacturing setup — one question always comes up:“How much did it actually cost me to sell this product?”That exact answer comes from something called Cost of Goods Sold (COGS).Understanding COGS helps you see your real profit, not just your sales numbers. For beginners learning accounting or business … [Read more...] about Cost of Goods Sold (COGS) Explained: Meaning, Formula & Example for Beginners