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The price to book ratio compares a company’s current stock market price to its book value (which is generally speaking a company’s net assets).
To calculate, an analyst need only divide a company’s latest market price by it book value, which is calculated by taking ‘Total Assets minus Intangible Assets and Liabilities.’ The P/B ratio gives some idea of what premium an investor is paying if the company went bankrupt immediately.
Due diligence is the responsibility to research all pertinent information about the parties involved prior to doing business
Investment interest expense is the term for interest which has been paid in order to hold an investment position
Medicare and Medicaid are two very substantial government-run healthcare programs which you have no doubt heard of before
In 2007, Qwest Communications CEO Joseph Nacchio was convicted of making over $50 million dollars through illegal trades
Conventional wisdom is that real estate investments are a good hedge against inflation, and they often have tax advantages
If your new employer has a 401(k) plan, you can usually rollover your old 401(k) into a new one
A 457 is only slightly different than a 401(k), but the differences can be important
The prime rate is the lowest interest rate that banks will charge on loans at a given time, based on the Fed Funds Rate
CUSIP is basically like a Dewey Decimal number for stocks and U.S./local government bonds. CUSIP stands for Committee...
In a currency swap, institutions will loan each other an equal principal amount at the current exchange rate (1-30 yrs)