The most comprehensive educational resources for finance

The Piotroski Score

Professor Piotroski decided to test his stock scanner to historical data, to compare the results vs. the ones reported for the period. This test finally resulted in what came to be known as Piotroski Score . The period in question was 1976 to 1996. It ended up giving 23% average return, annually. Validea reports, that by

Common Stocks and Uncommon Profits and Other Writings – Book Review

Philip A. Fischer famously said: Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put far too little into companies they thoroughly know and far too much in others which they know nothing about. and The successful investor is usually an individual who

Discovering Why you have not become Wealthy: Yet

There is no question that most people want to be wealthy; however, there are very few that actually take the necessary steps to achieve it. Why do people want these things, but never work to get them? The truth is that anyone that has regular employment – from a ditch digger to a lawyer –

Best Mobile Apps for Stock Analysis

In this article, I wanted to highlight a very powerful mobile app that is a must have for any investor. It’s called Scout Finance and is available for iphone and ipad. Scout Finance lets you access deep data on your favorite stocks in real time from anywhere. The best app for stock tracking, news, and financial

Anatomy of a Perfect Stock Report

For an equity investor, one of the most important sources of information while making investment decisions is a stock report, also known by many other names such as equity research report. You would generally expect the research reports to provide you objective analysis and deliver critical information about the stock that you can use to

What is a Tear Sheet?

In stock markets, a tear sheet is generally referred to the Standard & Poor’s summary sheet for public companies. These sheets provide up-to-date information about companies including their business overview, financial performance, and key fundamental metrics. They are referred to as tear sheets because years back, S&P used to have summary books, and the stock

How to Download Options Prices in Excel

We have earlier discussed about downloading stock quotes in excel. You can do this in many ways such as from yahoo finance, or using the MarketXLS add-in that helps you seamlessly integrate live stock quotes in your excel workbook. In this post, I’ll describe how the MarketXLS Stock Quotes in Excel add-in can also be

How to calculate beta for a portfolio

To calculate the beta of a portfolio, you need to first calculate the beta of each stock in the portfolio. Then you take the weighted average of betas of all stocks to calculate the beta of the portfolio. Let’s say a portfolio has three stocks A, B and C, with portfolio weights as 10%, 30%,

Why companies issue multiple classes of common stock?

Question Companies issue various classes of common shares such as Class A shares and class B shares. Why is that? Answer: First, note that different classes of shares does not mean common shares and preference shares. Within common shares, companies issue different classes of shares such as Class A and Class B shares. All these