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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 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 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…
