Let’s have a look at one of the most interesting items of the accounting statements that is directly linked to all statements we have looked at (Balance Sheet, Income Statement, and Cash Statement). Pretty much every asset that we have … Continue reading What is depreciation?
Derivatives are often thought of as confusing and overly complicated. Simply put, it is a financial product that derives its price from the underlying assets, which can be stocks, bonds, commodities, exchange or interest rates, market indexes, and even other derivative instruments. Continue reading What are derivatives?
When considering investing, the return is as one of the most crucial factors the investors look at. It is not the most complex concept when we look at the value of a portfolio, however the calculations can become very intricate when we look at large, multi-asset class portfolios with transaction costs, cash flows, dividends and interest payments, and frequent rebalancing. Continue reading Measuring Returns 101
The balance sheet tells what a company owns and owes, the income statement tells us what a company earns and pays over the specific timespan. The cash statement uses all that information and explains where the actual money is in all that process. Continue reading Cash Statement and How it Links to Other Statements
The income statement looks at what the company earns and pays over the specific time span. Continue reading Income Statement: Yin and Yang of the company’s profits
While equities are the most visible asset class, the bonds are the most diverse. Typical company has one, few firms have a couple of equities share classes. The most notable examples are tech firms such as Alphabet and Facebook having … Continue reading What are bonds?
This is the asset class with the largest valuation globally. Equity represents an ownership of the company share. Essentially, the ownership of equity entitles you to receive the future incomes of the company and allows you to decide on the company’s behalf based on the stake owned. Continue reading What are equities?
The range of investment options is so broad that it might be overwhelming for a new person exploring their long- and short-term portfolio needs. Historically, the asset classes were equities, bonds, and cash, however, the present-day list can be expanded with alternatives (real estate, commodities, venture capital, direct private equity, and real estate. Continue reading ‘What are’ articles. Financial instruments’ variety
The balance sheet is the financial statement that is typically used for figuring out the financial standing of the company. The typical items that you see on the balance sheet are Assets, Liabilities and Owner’s Equity. Continue reading Balance Sheet and its Three Horsemen
I have been learning finance and working in the industry for the past 11 years, and I must say there is nothing that brought me more joy than teaching others the basics of financial literacy. Our financial health is very … Continue reading Investing 101: What’s this blog about?
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