The most comprehensive educational resources for finance

Analyze Securities Using Tableau Visualizations

I recently came across the visualization tool called Tableau. You can use your data to create any kind of visualization using tableau. The below link provides an example of a visualization created using tableau. This analysis shows the revenue of the top 100 publicly-traded technology companies from the common baseline of their first year

Trading as a Career Option

In my long stint in the financial market and the academic world I have come across many greenhorns who want to take up trading as a career option. They have dreams in their eyes and are lured by the dazzling screens, armed with Bio and Autobiographies of pundits of investments, with the flaring expectation to

Why Stock Prices Move

In our everyday life we sometimes wonder about the most basic question of stock market – why does the price of a share go up or down? We are not talking about the daily or weekly gyrations but in the long run why the stocks moves. The two most basic reasons are: Change in earnings

How to Identify a Multibagger

In all our discussion about equity market we come across the question “tell me some Multibagger”. This disease of looking for a tip to identify a multibagger is not confined to your professional circle alone but any discussion regarding market veers to this even on a social gathering. People still talk about how they missed

Synthesis of Numbers – The DuPont Way

A good Fund Manager always goes behind the apparent numbers to bring out the essence out it. They are the educated sleuths, going through minute details and footnotes to find out any meaningful information. They often use a simple method of analysing the levers the management has to enhance the profitability of the company in

Stock Evaluation Spreadsheet

Our user Jim Grant has created a very useful stock evaluator spreadsheet and has shared it with the Finance Train Community. You can download the spreadsheet from the link below: Stock Evaluator Spreadsheet The spreadsheet is created using the Stock Quotes in Excel add-in to evaluate stocks based on simple, fundamental analysis variables. One tab

How to Buy Shares

Shares are one of the most important and lucrative investment classes. Some of the richest people in the world have created their wealth by investing in stock markets. While the creation of wealth is a long and systematic process, the first thing that you need to do is to complete the formalities and be ready

Class A and Class B Common Stock

A company can also issue various classes of common stock, such as Class A and Class B, with each class having different features. One class may have higher voting power, while the other may have higher dividends. For example, Class A shares may have 1 vote per share and 100% of dividends. Class B shares

Voting Systems: Statutory Voting and Cumulative Voting

Common shares provide voting rights to the shareholders which provide the shareholders the ability to participate in major corporate decisions such as election of directors, mergers and acquisitions, selection of auditors, etc. When electing the members of the board of directors, there are two commonly used methods of voting: Statutory Voting and Cumulative Voting. Under the

Convertible Preference Shares

Convertible preference shares give the preference shareholders the right to convert their shares into a specified number of common shares. The ratio of how many common shares an investor will get for each preference share is called conversion ratio. An investor has many advantages in buying convertible preference shares instead of directly buying common shares.