EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is the Price to Sales Ratio (P/S Ratio)?
The Price to Sales Ratio, also known as the PSR, is a valuation metric that looks at a stock’s market price versus its per share revenue.
Alternatively, you can calculate it by dividing a company’s total market capitalization by its total revenue in the most recent fiscal year. The ratio indicates how much value (how much investors are willing to pay) is placed on each dollar of revenue generated by the company.
A high PSR could mean a company is overvalued, or that investors are betting on future growth and therefore willing to pay a premium for current ownership. The opposite could be said of a low relative PSR.
What is Mutual Fund Classification According to the Price to Earnings Ratio?
Managing a fund based on P/E Ratio generally tends to put valuation ahead of other criteria when selecting stocks
What are the IRA Contribution Limits?
The IRS adjusts the contribution limits year to year to accommodate cost-of-living adjustments
SEP and SIMPLE IRAs
How Can I Establish a SEP IRA?
SEP IRAs do not have to be established until taxes are filed for the year, and it can be done quickly
What is the Wilshire 5000 Index?
The Wilshire 5000 is a cap-weighted index and it can be considered the broadest index of all U.S. equity markets
What is residual income?
Residual income is a stream of income that persists from one work project or investment
What is the Dividend Payout Ratio?
The Dividend Payout Ratio represents the percentage of a company’s earnings/profits that they pay-out to shareholders
What is active management?
Active management is the practice of attempting to outperform the market with selection and timing
What is a market-on-open order?
Market-on-open orders are looking to buy or sell immediately after the market opens, at the opening price
What is IRS Publication 334, Tax Guide for Small Business?
There are many nuances to filing taxes, and many kinds of small businesses, so this form comes into use quite often