Owner's stakes. How to record your own investment, payouts, and retained earnings without messing up the cap table.
Equity & Capital
Confused about accounting for investments? Discover what is an investment in accounting and learn the fundamental rules of debits and credits. See practical investment journal entries and master how to record investments in accounting correctly.
Equity & Capital
The equity multiplier is a vital financial leverage ratio revealing a company's capital structure and reliance on debt vs equity financing. Learn the equity multiplier formula, its interpretation, and its critical role in Dupont analysis for assessing financial risk.
Equity & Capital
Learn the dividend yield calculation formula and how to calculate dividend yield accurately. Compare TTM vs forward dividend yield, understand high dividend yield risks, and determine what is a good dividend yield for your portfolio.
Equity & Capital
Discover how to calculate intrinsic value of a stock using powerful stock valuation formulas. Compare absolute valuation vs relative valuation methods, including the discounted cash flow, dividend discount model, and residual income model, to identify truly undervalued stocks.
Equity & Capital
Understand how do share buybacks work and their effect on earnings per share. Explore the key advantages of share buyback, the risks (disadvantages of share repurchase), and the role of treasury stock in corporate finance.
Equity & Capital
Understand what are options in trading, the core types of options contracts like call options and put options, and how intrinsic value options are calculated. Learn the difference between American and European options styles to build effective options trading strategies.
Equity & Capital
Discover what is preferred stock, a unique hybrid security. Analyze preferred stock advantages and disadvantages for investors and companies. Learn why companies issue preferred stock and the risks, including the downside of preferred stock and features of cumulative preferred stock.
Equity & Capital
Demystify common stock and shareholders equity. Learn how to record common stock journal entries for stock issuance and master key calculations like how to calculate shares outstanding and calculating book value per share, transforming complex finance into clear steps.
Equity & Capital
Understand the critical gaap and ifrs differences affecting the retained earnings statement. Learn what is statement of retained earnings, why these accounting standards diverge, and the importance of retained earnings for global financial reporting standards.
