Return on equity capital (ROE) is a measure that shows how a company has generated return on its equity capital. To understand what are the factors that has increased or decreased the company's ROE, a useful technique is to decompose ROE into its component parts. DuPont analysis is a method of breaking down return on equity (ROE) into their components to measure which areas are … [Read more...] about What is DuPont analysis of a company
Finance
Price to cash flow ratio: How to use cash to determine value
In fundamental analysis, financial ratios work like a tool in order to find out whether a stock is cheap or not. One of such ratios is price to cash flow ratio or P/CF multiple.Price to cash flow ratio is a comparison of current market price per share with operating cash flow per share. It's considered as part of the profitability ratio.In the first step you have to … [Read more...] about Price to cash flow ratio: How to use cash to determine value
Beginner’s guide to different trading order types in stock market
When you call your broker to place an order or execute on your own online, you need to be familiar with different kinds of buy and sell orders that you are allowed to place.A trade is completed with a buy and sell order.This means, if a trade is entered by buying stocks of a company, then it will be exited by selling those stocks.Similarly if its entered by … [Read more...] about Beginner’s guide to different trading order types in stock market
What is short selling in the stock market and how it works
In the stock market, traders buy common stocks to sell them at a higher price to make a profit. This type of trade is completed with a buy order and then followed by a sell order. This means, if a trade is entered with a buy order, then it will be exited with a sell order. Short selling is opposite to this process. This means a person takes a short position if he expects that … [Read more...] about What is short selling in the stock market and how it works
Understanding Stock Market Trends: Bull vs. Bear Markets
What is the bear market?What is the bull market?When a bull or bear market starts?Are you searching answers to these types of questions? If Yes, don't worry, you are at the right place. This article will define what is the bull and bear market. You will also understand the differences between these two.Market participants buy stocks to make money. It's an … [Read more...] about Understanding Stock Market Trends: Bull vs. Bear Markets