What are Income Stocks? Examples and Types It is usually companies with stable cash flows and well-established financial infrastructure that issue such stocks. These companies have large
Equity Ratio Formula and Calculation The equity ratio formula shows the relationship between the total equity to total assets of a firm. The financial metric
Advisory Shares Meaning and Examples Advisory shares are a type of stock option that is given to company advisors rather than employees. They are usually
What is Financial Leverage? Types and Example We can say that financial leverage is a means through which individuals or companies go into debt in order to
Earnings Per Share Ratio (EPS) Calculation The EPS calculation is done when a company’s profit is divided by the outstanding shares of its common stock. The
Debt to Asset Ratio Formula and Calculation The debt to asset ratio formula shows the relationship between total debt to total assets of a firm. The debt
Solvency Ratio Formula and Example The solvency ratio formula guides how to measure a firm’s ability to meet its long-term debt obligations. This metric is
(ROE) Return on Equity Formula and Calculation We can derive the return on equity formula by dividing the net income by the shareholders’ equity. The ROE formula
Outstanding Shares Formula and Calculation The outstanding shares formula is represented as issued shares minus shares held in the company’s treasury or treasury stock. Through
Treasury Stock Accounting and Examples Treasury stock in accounting Treasury stock is referred to as the shares that the company (issuer) buys back from its
What are Cyclical Stocks? Examples and Types Examples of companies with cyclical stocks are car manufacturers, airlines, furniture retailers, clothing stores, restaurants, and hotels. If there is
What are Defensive Stocks? Examples and Features It is important to note the difference between defensive stocks and defense stocks. Defense stocks are the stocks of companies
Cumulative Preferred Stock and Examples A cumulative preference share is a type of preferred stock. Typically, preferred stock has a fixed dividend yield based on
Par Value of Stock Meaning, Formula, and Example Meaning Par value of stock refers to the face value or nominal value of shares or the stock price stated
Participating Preferred Stock Examples Definition Participating preferred stock is best characterized as stock that gives the shareholder the right to receive dividends that are
Stock Valuation Formula and Methods The stock valuation formula varies across the methods of valuation which may fall under absolute valuation or relative valuation. These
Dividend Payout Ratio Calculation and Formula Dividend payout ratio calculation is carried out by taking the yearly dividend per share and dividing it by the earnings
Tangible Assets Examples and Formula Tangible assets are the opposite of intangible assets which do not take a physical form and have a theorized value
Why is market segmentation important? “Why is market segmentation important?” is a question that may be going through many minds. This article explains the importance
Characteristics of a good market Before we look at the characteristics of a good market, let us look at the meaning of the market. In