Be the first to watch our newest videos on Investopedia Video: http://www.investopedia.com/video/ Compound interest is often called one of the most powerful concepts in finance. Find out what it is and how it can work for you. For more content related to Compound Interest, check out: Understanding The Time Value Of Money http://www.investopedia.com/articles/03/082703.asp Overcoming Compounding's Dark Side http://www.investopedia.com/articles/06/compoundingdarkside.asp
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Private equity refers to company ownership by a specialized investment firm. Typically, a private equity firm will establish a fund and use it to buy multiple businesses, with the goal of selling each one within a few years at a profit. Private equity firms will often target an underperforming business and, after purchasing the company, use their management expertise to improve profitability.
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Call options offer investors a way to leverage their capital for greater investment returns. Find out more about these financial contracts and how they work. Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/
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Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/ Working capital is one of the basic metrics used to evaluate a company's financial health. Find out what it can tell you about a stock and learn how to calculate it. For more content on Working Capital, check out; Working Capital Works http://www.investopedia.com/articles/fundamental/03/061803.asp The Working Capital Position http://www.investopedia.com/articles/basics/06/workingcapital.asp Evaluating A Company's Capital Structure http://www.investopedia.com/articles/basics/06/capitalstructure.asp
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Be the first to watch our newest videos on Investopedia Video: http://www.investopedia.com/video/ Return on assets is one of the basic metrics used to evaluate a company's stock. Find out what it can tell you about a stock and learn how to calculate it here. For more on ROA and how it can help you better evaluate companies, check out; Use ROA To Gauge A Company's Profits http://www.investopedia.com/articles/fundamental/04/012804.asp ROA And ROE Give Clear Picture Of Corporate Health http://www.investopedia.com/articles/basics/05/052005.asp
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The methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental and technical analysis. Learn the core differences in these strategies and how to use each analysis effectively. For more Investopedia videos, check out; http://www.investopedia.com/video/
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A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. Portfolios that lie below the efficient frontier are sub-optimal, because they do not provide enough return for the level of risk. Portfolios that cluster to the right of the efficient frontier are also sub-optimal, because they have a higher level of risk for the defined rate of return. Read more: http://www.investopedia.com/terms/e/efficientfrontier.asp
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Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/ Stocks are one of the most popular financial instruments in the world, but what does a stock actually represent? Find out how and why stocks are created, and what buying a stock means for investors. For more on Stocks, and how to pick the right ones for your portfolio -- check out; The Alphabet Soup Of Stocks http://www.investopedia.com/articles/02/102502.asp 4 Steps To Picking A Stock http://www.investopedia.com/articles/stocks/09/screening-stocks-for-investing.asp How To Effectively Investigate A Stock http://www.investopedia.com/articles/analyst/03/041503.asp Become Your Own Stock Analyst http://www.investopedia.com/articles/basics/09/become-your-own-stock-analyst.asp
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Learn how enterprise value can help investors compare companies with different capital structures. Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/
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Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/ Book value is a component in many ratios that investors use to evaluate stocks. Find out how it is calculated and what it reveals about a company. For more on Book Value, and how you can use it to improve your trading strategies -- check out; Digging Into Book Value http://www.investopedia.com/articles/stocks/07/book_value.asp FAQ: What's the difference between book and market value? http://www.investopedia.com/ask/answers/183.asp Book Value: How Reliable Is It For Investors? http://www.investopedia.com/articles/fundamental-analysis/09/book-value-basics.asp Investment Valuation Ratios Tutorial: Price/Book Value Ratio http://www.investopedia.com/university/ratios/investment-valuation/ratio2.asp
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Make sure to watch our newest videos at Investopedia Video: http://www.investopedia.com/video/ Find out how these highly leveraged funds operate. For more on Hedge Funds, check out: Hedge Funds Tutorial: Introduction http://www.investopedia.com/university/hedge-fund/ A Brief History Of The Hedge Fund http://www.investopedia.com/articles/mutualfund/05/hedgefundhist.asp Picking Top-Quality Hedge Funds http://www.investopedia.com/articles/mutualfund/09/search-hedge-fund.asp How To Invest Like A Hedge Fund http://www.investopedia.com/articles/mutualfund/08/hedge-fund-invest.asp
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A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value. For more Investopedia videos, check out; http://www.investopedia.com/video/
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Duration tells investors the length of time, in years, that it will take a bond's cash flows to repay the investor the price he or she paid for the bond. A bond's duration also tells investors how much a bond's price might change when interest rates change i.e. how much risk they face from interest rate changes.
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Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/ Return on investment allows an investor to evaluate the performance of an investment and compare it to others in his or her portfolio. Find out how to calculate ROI and how to use to your advantage. For more on different ROI ratios, and how to use them -- check out; FYI On ROI: A Guide To Calculating Return On Investment http://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp How To Calculate ROI For Real Estate Investments http://www.investopedia.com/articles/basics/11/calculate-roi-real-estate-investments.asp Find Quality Investments With ROIC http://www.investopedia.com/articles/fundamental/03/050603.asp CFA Level 1 Exam Prep: Financial Ratios - Return On Investment Ratios http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/return-investment-ratios.asp
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A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration but three different strike prices to create a range of prices the strategy can profit from. For more Investopedia videos, check out; http://www.investopedia.com/video/
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Investors should observe the Federal Reserve’s funds rate, which is the cost banks pay to borrow from Federal Reserve banks. What's going on with Japan's interest rates? Read here: http://www.investopedia.com/articles/investing/012916/bank-japan-announces-negative-interest-rates.asp?utm_source=youtube&utm_medium=social&utm_campaign=youtube_desc_link
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Investors looking for a low-risk alternative to increase their investment returns should consider writing covered calls on the stock they have in IRAs. This conservative approach to trading options can produce additional revenue, regardless of whether the stock price rises or falls, as long as the proper adjustments are made. For more Investopedia videos, check out; http://www.investopedia.com/video/
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Income investors love them and growth investors rarely expect them, but just what are dividends? Learn the story behind these payouts and why they are (or aren't) offered to investors. For more Investopedia videos check out: http://www.investopedia.com/video/
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Learn how you can create fixed income and a more diversified portfolio with bonds.
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All publicly traded companies share the same basic corporate structure. Find out how the management hierarchy works, what responsibilities belong to whom, and who's looking out for shareholders. Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/
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Learn the basic information you need to calculate the taxes you'll owe the government this tax season. For more Investopedia videos, check out; http://www.investopedia.com/video/
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Medicare and Medicaid are often confused with one another, because they are both public health-care programs. Medicare exists to help the elderly cover long-term health expenses, whereas Medicaid is designed to help low-income Americans afford health care.
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Exchange-traded funds (ETFs) offer investors the ability to diversify over an entire sector or market segment in a single investment. Find out how they are created and what they can do for your portfolio. For more Investopedia videos, check out; http://www.investopedia.com/video/
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The Balance of Payments is a record of all payments or monetary transactions between a particular country and other nations during a specific time period. A country's BOP should be zero; that is, the current account should balance with the capital plus the financial accounts. However, statistical discrepancies, differences in accounting practices and exchange-rate fluctuations mean that this rarely happens.
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What happened to the economy in 2007? These are countries are still suffering from a recession: http://www.investopedia.com/articles/investing/111615/4-countries-recession-and-crisis-2008.asp?utm_source=youtube&utm_medium=social&utm_campaign=youtube_desc_link
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Operating leverage is the relationship between a company's fixed and variable costs. A company with high operating leverage will see its profits go up when its ticket sales increase, because fixed costs remain the same. Likewise, a company with low operating leverage in a declining sales period must still pay its fixed costs, and it will thus suffer bigger losses. The degree of operating leverage (DOL) of a firm measures how well a company generates profit using its fixed costs.
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Make sure to watch our newest videos at Investopedia Video: http://www.investopedia.com/video/ Learn about some important signals that indicate a company may be in serious trouble. For more on the topic of troubled companies, check out: Warning Sings Of A Company In Trouble http://www.investopedia.com/articles/financialcareers/07/warning_signs.asp Evaluating A Company's Management http://www.investopedia.com/articles/02/062602.asp Finding Profit In Troubled Stocks http://www.investopedia.com/articles/stocks/05/troubledstock.asp
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The dividend payout ratio and retention ratio measure how much profit a company gives back to shareholders as dividends.
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Comparative advantage is the ability of an individual, company or country to produce a good or service at a lower opportunity cost than its competitor. Having a comparative advantage doesn't mean that one entity is better than another at producing a good or service. It means that it sacrifices less to do so.
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Be the first to watch our newest videos at: http://www.investopedia.com/video/ Options offer investors a way to leverage their capital for greater investment returns. Find out what out the money means for option investors. For more Options strategies, check out: Options Trading With Iron Condor http://www.investopedia.com/articles/optioninvestor/06/ironcondor.asp How To Avoid Closing Options Below Intrinsic Value http://www.investopedia.com/articles/optioninvestor/04/120804.asp
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Contribution margin is the difference between sales revenue and variable cost. It allows a company to determine the profitability of individual products by measuring how sales affect profits. In its ratio form, it is calculated as Contribution Margin ÷ Sales Revenue. While revenue from a company's product is how much money the company makes from selling that item, a product's variable costs include those expenses that vary depending on the company's production volume.
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Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/ Earnings per share is one of the most carefully followed metrics in investing. We show you why this ratio matters and how to calculate it. For more on Earnings Per Share (EPS), and how it can help your trading success -- check out; The 5 Types Of Earnings Per Share http://www.investopedia.com/articles/analyst/091901.asp CFA Level 1 Exam Prep: Determining The EPS Of A Company http://www.investopedia.com/exam-guide/cfa-level-1/equity-investments/determining-eps-earnings-per-share.asp How To Evaluate The Quality Of EPS http://www.investopedia.com/articles/analyst/03/091703.asp Assess Shareholder Wealth With EPS http://www.investopedia.com/articles/basics/07/eps.asp
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Be the first to watch our newest videos via Investopedia Video: http://www.investopedia.com/video/ Game theory in general looks at how individuals or groups make choices that will, in turn, affect other parties' choices. Nash Equilibrium refers to a condition in which every participant has optimized its outcome, based on the other players' expected decision. In summary, game theorists look at decisions, not in isolation, but as part of a system of interactions. For more on Game Theory and Nash Equilibrium, check out; Game Theory: Beyond The Basics http://www.investopedia.com/articles/financial-theory/09/game-theory-beyond-basics.asp 5 Nobel Prize-Winning Economic Theories You Should Know About http://www.investopedia.com/articles/economics/12/nobel-prize-winning-economic-theories.asp Explaining The World Through Macroeconomic Analysis http://www.investopedia.com/articles/02/120402.asp
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Be the first to watch our newest videos at: http://www.investopedia.com/video/ Options offer investors a way to leverage their capital for greater investment returns. Find out what in the money means for option investors. For more on trading Options, check out: Options Basics Tutorial: Introduction http://www.investopedia.com/university/options/ Using Options Instead Of Equity http://www.investopedia.com/articles/optioninvestor/07/options_instead_equity.asp An Alternative Covered Call Options Trading Strategy http://www.investopedia.com/articles/optioninvestor/06/inthemoneycallwrite.asp
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The ROIC is used to measure how well a company is investing its capital. An advantage of viewing a company's ROIC is that it provides investors an overview of a company's management performance. When a company consistently shows a high ROIC, it is considered a good investment and its shares tend to trade at a higher market price.
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A CEO can have a huge impact on a company's bottom line. Good CEOs can lift up a company through their leadership and management, while some CEOs do just the opposite. Learn about the fat cats, and how their hefty compensation can drag a company down.
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Vanguard founder John Bogle shares what led him to start the investment management company now holding over $4 trillion in assets.
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The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue, and is a calculation of the amount of sales or revenue generated per dollar of assets. The formula for the ratio is as follows: Sales or Revenues ÷ Total Assets A higher number is preferable, since it suggests that the company is using its assets efficiently to make money. A lower number may convince a company to try other methods to help maximize the efficiency of its assets. Nevertheless, this ratio varies between industries and can only be compared effectively between businesses in the same sector.
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The wealth effect is a psychological phenomenon that causes people to spend more as the value of their assets rises. The premise is that when consumers' homes or investment portfolios increase in value, they feel more financially secure, so they increase their spending. Conversely, when consumers see the value of their homes or portfolios fall, they tend to spend less. The wealth effect attempts to explain why consumers might change their spending habits even if their income and fixed costs have stayed the same.
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No one likes to ponder death, but it's something you must prepare for. Learn how much - if any - life insurance you really need. For more Investopedia videos, check out; http://www.investopedia.com/video/
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The financial advisory business is facing an impending transformational change. Gen X is now poised to become the US’ wealthiest demographic once boomers and their parents pass on an estimated 24 trillion dollars. This means the younger, soon-to-be wealthiest Americans will need financial advisors, and they're much more likely to seek that help from algorithm-based robo-advisors than humans. What does that mean for the financial advice market?
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