These shares are bought and sold on the stock market, allowing investors to participate in a company’s profits and potential growth. Owning equities entitles shareholders to voting rights, dividends, and a claim on the company’s assets in case of liquidation. Equities are considered a higher-risk investment due to their potential for volatility but also offer the opportunity for significant returns.
Start here
3 articles · 43 min
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Fundamental Analysis: A Step-by-Step Guide to Stock Analysis
Fundamental analysis is the systematic process of evaluating a stock’s intrinsic value by examining financial statements, profitability metrics, valuation…
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P/E Ratio: Price-to-Earnings Ratio Explained
The price-to-earnings ratio (P/E) measures how much investors pay for each dollar of a company’s earnings, serving as the most widely used equity valuation…
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DCF: Discounted Cash Flow Valuation Explained
Discounted cash flow analysis is the gold standard of intrinsic valuation in finance. Rather than relying on what the market currently pays for comparable…
How the Stock Market Works
3 parts · 39 min
Short Selling: How It Works, Risks, and Short Squeeze Mechanics
Short selling lets investors profit from falling stock prices by selling borrowed shares. Learn the mechanics, margin requirements, short squeeze risk…
Stock Market Indexes: How Indexes Work
A stock market index tracks the performance of a group of stocks, serving as a benchmark for portfolio evaluation, the basis for index funds and ETFs…
Market Cap: Market Capitalization Explained
Market capitalization measures a company’s total equity value by multiplying its stock price by shares outstanding.
Funds & Investment Vehicles
5 parts · 1½ hours
Mutual Funds: How They Work, Types, Fees, and How to Choose
Mutual funds pool money from many investors into diversified portfolios of stocks, bonds, or other securities.
ETFs: Exchange-Traded Funds Explained
Exchange-traded funds (ETFs) combine mutual fund diversification with intraday stock trading. Learn how the creation/redemption mechanism works, why ETFs…
Index Funds: Passive Investing Explained
Learn what index funds are, how they work, and why passive investing outperforms most active strategies. Covers SPIVA evidence, fee compounding, fund…
Expense Ratio: Fund Fees Explained
The expense ratio is the annual fee a fund charges as a percentage of assets under management. Learn what it includes, what it excludes, how fees compound…
IPO: How Initial Public Offerings Work
An IPO (initial public offering) is the first time a company sells shares to the public on a stock exchange. This guide covers the 7-step IPO process…
Investing Strategies
5 parts · 1 hour
Active vs Passive Investing: Which Strategy Wins?
Comprehensive comparison of active vs passive investing strategies. Covers SPIVA performance data, fee impact analysis, core-satellite approach, and a decision…
Asset Allocation: Strategies for Every Investor
Asset allocation is the process of dividing an investment portfolio among different asset categories based on goals, risk tolerance, and time horizon.
Dollar-Cost Averaging: How DCA Builds Wealth Over Time
Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed dollar amount at regular intervals regardless of market conditions, reducing…
Value Investing: Graham, Buffett, and the Margin of Safety
Value investing is the discipline of buying stocks below their intrinsic value with a margin of safety. Learn Benjamin Graham’s quantitative screens, Warren…
Sector Rotation: Business Cycle Investing Strategy
Sector rotation is an active investment strategy that shifts portfolio allocation among economic sectors based on the business cycle.
Stock Valuation Methods
6 parts · 1 hour
FCF: Free Cash Flow Formula and Analysis
Free cash flow (FCF) measures the cash a company generates after funding operations and capital expenditures. Learn the FCFF and FCFE formulas…
Intrinsic Value: How to Value a Stock
Intrinsic value is the estimated true worth of a stock based on fundamental analysis. Learn how to calculate intrinsic value using DCF, DDM, and relative…
EPS: Earnings Per Share Formula and Analysis
Earnings per share is the most widely cited measure of a company’s profitability on a per-share basis. When a company reports quarterly results, EPS…
EV/EBITDA: Enterprise Value Explained
Enterprise value represents the total cost of acquiring a company — equity plus debt minus cash. The EV/EBITDA multiple provides a capital-structure-neutral…
P/B Ratio: Price-to-Book Ratio Explained
Learn how the price-to-book ratio measures what investors pay per dollar of net assets, why it is the primary valuation metric for banks, and how P/B connects…
P/S Ratio: Price-to-Sales Ratio Explained
The price-to-sales ratio (P/S) measures how much investors pay for each dollar of a company’s annual revenue, making it the primary valuation metric…
Financial Statement Analysis
7 parts · 1½ hours
ROE: Return on Equity Formula and Analysis
Return on equity is the single most important profitability metric for equity investors. It measures how much profit a company generates with the money…
ROA: Return on Assets Formula and Analysis
Return on assets (ROA) measures how efficiently a company converts its total asset base into profit. This guide covers the ROA formula, industry benchmarks…
ROIC: Return on Invested Capital Explained
Return on invested capital (ROIC) measures how much after-tax operating profit a company generates relative to the total capital invested in its operations.
Profit Margins: Gross, Operating, and Net Margin Explained
Profit margins measure what percentage of revenue a company retains as profit at each stage of the income statement.
D/E Ratio: Debt-to-Equity Ratio Explained
The debt-to-equity ratio measures how much debt a company carries relative to shareholders’ equity. Learn the D/E formula, net D/E variant, industry…
Current Ratio & Quick Ratio: Liquidity Ratios Explained
The current ratio and quick ratio measure a company’s ability to meet short-term obligations. Learn the formulas, how to interpret liquidity ratios, and key…
Dividend Yield: Formula, Interpretation, and Yield Traps
Dividend yield measures how much income a stock pays relative to its price. Learn the trailing and forward yield formulas, how to interpret yield by sector…
Market Efficiency & Factor Investing
5 parts · 1 hour
Efficient Market Hypothesis: Three Forms of Market Efficiency
The efficient market hypothesis (EMH) states that stock prices reflect all available information, making it impossible to consistently beat the market.
Fama-French Three-Factor Model: Beyond CAPM
The Fama-French three-factor model extends CAPM by adding size (SMB) and value (HML) factors, explaining roughly 90% of diversified portfolio return variation…
Equity Risk Premium: Definition, Estimation, and the Puzzle
The equity risk premium (ERP) is the expected excess return investors demand for holding stocks over risk-free government bonds, and it is the single most…
Growth vs Value Investing: Which Strategy Wins?
Growth vs value investing is one of the oldest debates in finance. This guide explains the differences between growth and value styles, the historical value…
Momentum Investing: How Past Winners Keep Winning
Momentum investing buys stocks with strong recent performance and sells those with weak performance, exploiting one of the most robust anomalies in finance.
Investing Beyond U.S. Stocks
3 parts · 35 min
International Diversification: Why Invest Globally?
International diversification reduces portfolio risk by investing across countries with imperfect correlations.
Emerging Markets Investing: Risks, Rewards, and How to Invest
Emerging markets offer higher growth potential but carry unique risks including political instability, currency depreciation, and governance concerns.
REITs: Real Estate Investment Trusts Explained
REITs let investors access commercial real estate income through liquid, publicly traded securities. Learn the 90 percent distribution requirement, FFO…
Capital Budgeting & Valuation Metrics
2 parts · 22 min
Dividend Discount Model & Gordon Growth Model Explained From Corporate Finance
The dividend discount model (DDM) values a stock by discounting all expected future dividends to present value.
DuPont Analysis Explained: 3-Factor & 5-Factor ROE Decomposition From Corporate Finance
DuPont analysis decomposes Return on Equity into profitability, efficiency, and leverage components. Learn the 3-factor and 5-factor DuPont formulas…
Bond & Money Market Instruments
1 part · 10 min
Preferred Stock: Features, Yields & Valuation From Fixed Income
A comprehensive guide to preferred stock covering types, features, yields, DRD tax treatment, and comparison to bonds and common stock.
More articles
4 articles · 31 min
1929 Stock Market Crash Explained
Explore the 1929 stock market crash: the boom, margin calls, Black Thursday and Black Tuesday, the Dow’s long decline, and the link to the Great Depression.
Dupont Analysis in Python: Step-by-Step Guide From Python for Finance
In this blog post, we’ll explore how to analyze company financials using a DuPont Analysis in Python. We’ll retrieve financial data using the AlphaVantage API…
Learn the PEG ratio formula, compare growth-adjusted stock valuations, and see how forecasts, negative earnings, and accounting choices affect the result.
Scenario Analysis: Base, Bull and Bear
Learn scenario analysis with base, bull and bear cases. Follow revenue, margins, EPS and P/E through a stock valuation example and interpret the results.
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