Stock Trading Encyclopedia
How to Read a Cash Flow Statement
The cash flow statement is the third of the three core financial statements, alongside the balance sheet and the income statement, and in the…
Stock Trading Encyclopedia
Stock Trading Encyclopedia
How to Read an Income Statement
The income statement, also called the profit and loss statement or P&L, reports how much a company earned and what it spent over a…
Stock Trading Encyclopedia
How to Read a Balance Sheet
The balance sheet is one of the three financial statements that every publicly traded company in the United States must file with the SEC…
Trading Strategies
Earnings Season: How to Trade Around Reports
Four times a year, every public company in the United States files a quarterly accounting of its operations, and during the two-to-three week window…
Stock Trading Encyclopedia
What Is the P/E Ratio?
The price-to-earnings ratio, or P/E, divides a company’s share price by its earnings per share over the most recent twelve months. It expresses, in…
Trading Strategies
Value Investing: Buying Below Intrinsic Value
Value investing is the practice of paying materially less for a security than a careful estimate of what the underlying business is worth, and…
Stock Trading Encyclopedia
Due Diligence: How to Research a Stock
Due diligence is the analytical work performed on a company before capital is committed to its stock, and in equity research practice it is…
Stock Trading Encyclopedia
Fundamental Analysis
Fundamental analysis is the practice of valuing a stock by studying the underlying business rather than the price chart. Where technical analysis reads price…