Category Archives: Investment Basics
Many of us think that when we buy or sell a stock, there is another investor just like us who is willing to be on the other side of the trade. What if there isn’t? A market
In order to become a market maker firms have to apply to the stock exchange. They have to demonstrate that they have sufficient capital to provide the liquidity for the number of securities they are applying to
With mutual and pension funds managing billions of dollars these days, it is important for them not to give too much information away. They don’t want the market to act against them when they are about to

Market makers don’t care about fundamentals. They care about supply and demand imbalances which move markets either up or down during the day. Imbalances can last for hours, minutes or even seconds. If you are a long-term
Many investors think that dividend stocks are only for stodgy portfolios or retirees. Whether you are a newbie or are on the brink of retiring, you get quarterly or annual income from stocks that pay dividends. You
Indirect Method: The indirect method of calculating cash flow uses net-income as a starting point, and makes adjustments for all transactions for non-cash items, then adjusts for all cash-based transactions.
As mentioned in the article on ‘Income Statement Basics’ the income statement indicates the profitability of the company’s operations while the ‘Balance Sheet’ reveals the financial health of the company at a given point of time. However, both these
A Balance Sheet indicates the financial strength of the company at a given point of time. It is a snap-shot of what a company owns and owes. i.e., it gives the details of the ‘Assets’ and ‘Liabilities’.
The Income Statement provides an overview of how a company has performed over a given period of time. It indicates how revenue is transformed into net income and provides important insights into how effectively the management is
Financial statements provide access to a company’s financial health at a given point in time. The three important financial statements that provide an overview of the results of a company’s business activities are ‘The Income Statement’, ‘Balance