56. How Interest Rates Move Markets - What Traders Know

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...

Use the current ratio when evaluating a stock

This article will tell the reader how to calculate a company's current ratio and exactly what this figure tells the investor about the company.

The first thing that you will need to do is obtain a company's balance sheet. Lets say that you wanted to calculate Wal-Mart's current ratio. An easy way to get their balance sheet is to go to www.yahoo.com and type in their ticker symbol in the quote area. On the left side of the page is a list of different pieces of data about the company. Under the Financial tab click "Balance Sheet". Next Click the Annual tab at the top.

Now we need to introduce the Current Ratio formula. It is as follows:

Current Assets / Current Liabilities

This step is easy. On the Balance Sheet find the Total Current Assets title and get their latest value recorded. Now under the Liabilities section locate the Total Liabilities section and get the latest value recorded. Now just plug these values into the formula discussed above. For example here is WMT's current ratio:

47,585,000 / 58,454,000 = .8140 (Current Ratio)

Now we need to understand what this figure means. Simply Put this figure tells us that Wal-Mart can convert their current assets to cash and pay off about 81% of their current Liabilities.

You might be asking yourself "Is this Good?" Now you might want to evaluate what some of WMT's competitors current ratio's are. Costco has a current ratio of 1.058 and Target has a Current Ratio of 1.529. Both of these companies can pay off all of their current liabilities and still have current assets left over. In this evaluation Target has the most favorable current ratio because they can pay off their liabilities a little over 1.5x with their current assets. Remember to always compare a companies current ratio to other companies within the same industry. In this example Wal-Mart would still have about 18-19% of their current liabilities remaining they used their current assets to pay off their obligations.

55. The Business Cycle and Fiscal Policy - What Traders Know

This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.

A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...

How to Compare Investment Brokers

Investing is both a risky and rewarding experience. An investment can be risky due to the unknown factors such as the economy, but on the other hand, a good investment can yield a great return for the investor. There is always some level of expertise needed in order to make an informed and rewarding investment decision. By comparing investment brokers, you can seek out the best options available to assist you in securing your financial future. Use the information below to assist you in comparing investment brokers.

Surf the Internet. Today's technology makes it easy to compare investment brokers. Go to the website linked in the Resources section below, and research various investment brokers from the comfort of your home.

Find an investment broker who can accommodate your financial investment plans. Keep in mind things like stock commissions, option commissions, bond trading, mutual funds and annual fees (if applicable). Many brokers will charge a stock commission and/or option commission. Commission fees range in price anywhere from $4.95 to $19.95 or higher, depending on the broker. There are brokers who do not charge a stock commission, but they may charge an option commission, so be sure to find out what commission, if any, the broker charges.

Decide on your financial goals and choose the investment broker accordingly. Though it is possible to manage your investments on your own, many people tend to gravitate towards hiring an investment broker to manage their investments for them. Look for local advisers so you can meet with them in person. This can be very reassuring, since you can deal directly with a person and receive one-on-one attention.

Choose the investment broker that you feel offers what you need in terms of options and services provided. After deciding on the broker you feel meets your needs, carefully read their terms and agreements--really read the information they provide you and don’t just look over it. Be sure you know the services and options you are paying for in advance to eliminate any future miscommunication.

Tips & Warnings

• Make an informed decision about the options and services you want.
• Take your time to research the broker before investing.
• Never do business with a broker before seeking professional financial advice.