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Stock Investing Articles

Stock Investing image Trying to determine the worth of a company is like going on a mining expedition, but it doesn't have to be laborious. A basic understanding of the important numbers will ease your way.


Snapshot of a Stock: The Balance Sheet

Successful investing has no secret formula. Since financial statements are basic tools of fundamental analysis, it is important to be able to read and analyze them. Read more »

Mapping Earnings: Finding the Bottom Line in Profits

The income statement reports on one of the most critical company figures—its earnings per share. Over the long run, a stock's value is dependent upon its earnings potential. Read more »

Show Me the Money: Tracing a Firm's Cash Flow

Earnings, dividends, and asset values are important factors, but it is ultimately a company's ability to generate cash that fuels the growth in these factors. Strong cash flow allows a company to increase dividends, develop new products, enter new markets, pay off liabilities, buy back shares, and even become an acquisition target. Read more »

Putting the Numbers to Work: The Magic of Ratios

Financial ratio analysis relies on financial statements to study the past and develop a feel for a company's attractiveness measured through factors such as its competitive position, financial strength, and profitability Read more »

Frequently Asked Questions About Financial Statements

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Using a Simple Worksheet to Analyze a Stock

The task of selecting stocks can be made easier by organizing the decision process to ensure that salient data and information is evaluated in some logical sequence that allows an investor to make a reasonable decision. Read more »

Collecting Basic Data on a Stock

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Evaluating Dividend-Paying Stocks

The simplified approach can be applied to various investment strategies using the basic sources of information identified earlier. One popular strategy focuses on dividend yield. Read more »

Evaluating Growth Stocks

A growth approach to investing can help you find stocks with the potential for significant price appreciation, provided the firm is able to meet and exceed its growth expectations and you don't overpay for growth. Read more »