Investing for Beginners

Owning equity in a company means that you own all or part of it. The owners equity account is listed on the balance sheet for accounting purposes. There are a few reasons for a decrease in owners equity.

Net income is the portion of a companys revenues that remains after it pays all expenses. Owners equity is the difference between the companys assets and liabilities. It is the owners share of the proceeds if you were to liquidate the company today. The relationship between …

Governments and businesses issue bonds to raise funds from investors. Bonds pay regular interest, and bond investors get the principal back on maturity. Credit-rating agencies rate bonds based on creditworthiness. Low-rated bonds must pay higher interest rates to compensate …

When you invest in stock, an important figure to be familiar with is stockholders equity in the company. This is the amount of money that can potentially be paid out to investors. But you should also understand the two ways that stockholders equity can increase. One method …

A money market account, or money market deposit account, is a government-insured bank account that pays relatively high interest rates and provides cash withdrawal privileges. This type of account offers both savings and checking tools at higher yields than regular savings and …

When youre looking at a balance sheet, the stockholders equity, commonly referred to as the shareholders equity section, reflects the difference between the companys assets and its liabilities: the companys net worth. Items that impact stockholders equity include net …

The stockholders equity in a company measures the amount of money left over for the stockholders if the company were liquidated. The higher the shareholders equity, the more money each share in the company would receive. Stockholders equity is one important factor in …

Falling prices and decreasing asset values are symptoms of economic deflation. As the economy slows, demand for goods and services drops and employees are laid off as production slows. Higher unemployment means fewer people with money to spend, which kicks off a new round of …

In the past, stock investors were limited in how and when they could trade. Before the Internet and online trading, brokers served as middlemen in the stock market, accepting and executing trades on behalf of clients. Electronic trading and instant communication now enable …

When youre talking about a corporation, the terms stockholders equity and owners equity mean the same thing. However, youll only see the term stockholders equity on the corporations balance sheet. If youre referencing a sole proprietorship, the proper term is owners …

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