Financial Ratios

Financial ratios allow an analyst to quickly analyze a business and its operations and understand the financial situation of a company. These ratios answer many different kinds of questions that can be asked about a business performance. Normally, … [Read more]

Easy Way to Understand Value Investing

Value investing as an investment practice was popularized by Benjamin Graham and David Dodd in their 1934 classic treatise "Security Analysis". The idea itself rests on a very simple premise: Stock prices tend to differ from the intrinsic value of … [Read more]

What is Book Value Per Share

What is Book Value per Share Book value per share is simply (Common Stockholder's Equity / Number of Shares of Common Stock) If there are no preferred shares outstanding, Total Stockholder's Equity can be used in place of Common Stockholder's … [Read more]

January Effect Definition

The January Effect is named after an observation made in 1942 by banker Sydney Wachtel. He noted that small stocks have tended to outperform the market in the month of January since 1925. The hypothesis rests on the belief that in December stocks … [Read more]