What is a bond?
In finance, a bond is a contract between a business which needs money (e.g. to fund their growth) and an investor who wants to receive an income stream plus their cash back in time.
What is Revenue?
Revenue is what you sell. Think about it as s the money that you get for selling a product (e.g. books) or services (e.g. hairdressing) to another person or business.
What is Return on Equity (ROE)?
Return on Equity or ROE is a financial measure which tells you how much profit is being generated for every dollar investors have contributed.
Why Is The All Ordinaries and ASX 200 In Points And Not Dollars($)?
Many stock market indices, like Australia’s All Ordinaries (XAO) and S&P/ASX 200, are expressed in points and not dollars ($).
What does EBITDA & EBIT mean?
EBITDA means Earnings before Interest, Taxes, Depreciation & Amortisation, it is often called ‘operating profit’ and is frequently used by analysts and CEOs. Here’s how to calculate it.
What is Capital Gains Tax (CGT)?
Capital Gains Tax or CGT is a tax that is paid when you sell an investment or asset for more than it cost to buy it.
Return on Investment (ROI) Explained
ROI stands for Return on Investment and is one of the simplest and most versatile ratios to compare the profitability of investments. The formula to calculate ROI is the net return from an investment divided by its cost.
What is the price-earnings ratio (P/E)?
The price-earnings ratio (P/E) is a share valuation metric commonly quoted in the financial media. The formula to calculate the P/E ratio is the company’s share price divided by its earnings (or profit) per share.
What is a stock market crash?
Defined: A stock market crash / share market crash is a rapid sell-off or falls in asset prices, like shares / stocks, bonds or property.
The Difference Between Price and Value
In finance, the price is what you are asked to pay, value is what you are willing to pay.
What is diversification?
Diversification is a portfolio management technique used to lower the risk of an investment portfolio.
What are franking credits?
Franking credits are a tax credit available to eligible shareholders of Australian companies. They are also called imputation credits.