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Reviewed by Gordon ScottFact checked by Vikki Velasquez  Dulin / Getty Images You can create a Monte Carlo simulation using Microsoft Excel and a game of dice. This simulation is a method for modeling probabilities by using random numbers to approximate and simulate possible outcomes. It is widely used as an analysis tool and plays a…
Reviewed by Gordon ScottFact checked by Suzanne Kvilhaug Josep Lago / Getty Images Many investors like the food and beverage industry. Many of these companies belong to the consumer staples segment because they’re considered non-cyclical, which means they aren’t as vulnerable to smaller market fluctuations. One metric that investors use to evaluate companies and industries…
Reviewed by JeFreda R. Brown A company’s equity is the difference between its total assets and total liabilities. Also referred to as shareholders’ equity, it is used in fundamental analysis to determine the company’s value. Equity represents the net value of a company, or the amount of money left over for shareholders if all assets were liquidated and…
The Two Main Models Used To Improve Your Investing Fact checked by Suzanne KvilhaugReviewed by Somer Anderson Monty Rakusen / Getty Images Fundamental vs. Technical Analysis: An Overview There are two main schools of thought when evaluating investments and making trading decisions: fundamental analysis and technical analysis. Fundamental analysis examines an asset’s intrinsic value by looking…
Fact checked by Vikki VelasquezReviewed by Khadija Khartit A minority interest represents less than 50% ownership in a company. You can calculate it by multiplying the book value of a subsidiary by the total percentage owned by its minority shareholders. We explore the definition of minority interest a little further below along with further details…
Reviewed by Lea D. UraduFact checked by Amanda Bellucco-Chatham Real estate investment trusts (REITs) are a key consideration when constructing any equity or fixed-income portfolio. They can provide added diversification, potentially higher total returns, and/or lower overall risk. In short, their ability to generate dividend income along with capital appreciation makes them an excellent counterbalance…
Fact checked by Yarilet PerezReviewed by JeFreda R. Brown Volatility is a reflection of the degree to which price moves. A stock with a price that fluctuates wildly, hitting new highs and lows or moving erratically, is considered highly volatile. Traders look at its historical volatility when selecting a security for investment to help determine…
Reviewed by JeFreda R. BrownFact checked by Kirsten Rohrs Schmitt A common-size financial statement displays line items as a percentage of one selected or common figure. Creating common-size financial statements makes it easier to analyze a company over time and compare it to its peers. Using common-size financial statements helps spot trends that a raw…
NU, COIN, and CORZ Lead the 6 Biggest Blockchain Companies List Reviewed by Julius MansaFact checked by Kirsten Rohrs Schmitt Jasmin Merdan / Getty Images While Bitcoin and Ethereum dominate headlines, it’s the companies building the crypto infrastructure that are perhaps most poised to leave an indelible mark on the future of finance—and in your…
