Investing for Beginners

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The Relationship Between Net Income & Owner's Equity

Net income is the portion of a company's revenues that remains after it pays all expenses. Owner's equity is the difference between the company's assets and liabilities. It is the owner's share of the proceeds if you were to liquidate the company today. The relationship between ...

Advantages and Disadvantages of Bonds

Governments and businesses issue bonds to raise funds from investors. Bonds pay regular interest, and bond investors get the principal back on maturity. Credit-rating agencies rate bonds based on creditworthiness. Low-rated bonds must pay higher interest rates to compensate ...

What Increases Stockholder Equity?

When you invest in stock, an important figure to be familiar with is stockholders' equity in the company. This is the amount of money that can potentially be paid out to investors. But you should also understand the two ways that stockholders' equity can increase. One method ...

Advantages & Disadvantages of Money Market Accounts

A money market account, or money market deposit account, is a government-insured bank account that pays relatively high interest rates and provides cash withdrawal privileges. This type of account offers both savings and checking tools at higher yields than regular savings and ...

What Items Impact Stockholders' Equity?

When you're looking at a balance sheet, the stockholder's equity, commonly referred to as the shareholder's equity section, reflects the difference between the company's assets and its liabilities: the company's net worth. Items that impact stockholder's equity include net ...

How to Find Stockholders' Equity Mathematically

The stockholders' equity in a company measures the amount of money left over for the stockholders if the company were liquidated. The higher the shareholders' equity, the more money each share in the company would receive. Stockholders' equity is one important factor in ...

How to Invest During Deflation

Falling prices and decreasing asset values are symptoms of economic deflation. As the economy slows, demand for goods and services drops and employees are laid off as production slows. Higher unemployment means fewer people with money to spend, which kicks off a new round of ...

Does the Stock Market Run on the Weekend?

In the past, stock investors were limited in how and when they could trade. Before the Internet and online trading, brokers served as middlemen in the stock market, accepting and executing trades on behalf of clients. Electronic trading and instant communication now enable ...

Is Stockholders' Equity & Owners' Equity the Same?

When you're talking about a corporation, the terms stockholders' equity and owners' equity mean the same thing. However, you'll only see the term stockholders' equity on the corporation's balance sheet. If you're referencing a sole proprietorship, the proper term is owner's ...

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