Category Archives: trading

Guaranteed Investment Certificates

Guaranteed Investment  Certificates If you’re looking to invest but don’t want to take on much risk, then Guaranteed Investment Certificates (GICs) could be a good fit for you. This type of investment product has been popular with Canadians for decades since it provides guaranteed returns. Though the returns you get may not help you reach…

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Vertical analysis

Vertical analysis Vertical analysis is the proportional analysis of a financial statement, where each line item on a financial statement lists as a percentage of another item. It is also useful for trend analysis, to see relative changes in accounts over time, such as on a comparative basis over five years. For example, if the…

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Horizontal Analysis

Horizontal Analysis Horizontal analysis is an approach used to analyze financial statements by comparing specific financial information for a certain accounting period with information from other periods. Analysts use such an approach to analyze historical trends. Horizontal analysis can also be compared with a vertical one. Whereas vertical analysis analyzes a particular financial statement using…

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Fund Flow

Fund Flow Fund flow, also referred to as asset flows or just “flows,” measures the net movement of cash into and out of investment vehicles like mutual funds and exchange-traded funds. They do not reflect the performance of the investment, only how investors move their money. Outflows reflect share redemptions, or when investors take their…

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Economic Growth Rate

Economic Growth Rate Economic growth Rate describes an increase in the quantity and quality of the economic goods and services that a society produces and consumes. From the long-term perspective of social history, we know that economic prosperity and lasting economic growth is very recent achievement for humanity. In this entry, we will also look…

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Effective Gross Income

Effective Gross Income What is Effective Gross Income (EGI)? There’s big money-making potential with an investment rental property. However, determining how much you’ll actually make isn’t as simple as multiplying the monthly rent by 12. To understand your true cash flow, you’ll need to keep an eye on your effective gross income (EGI) about your net…

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Balance of Trade

Balance of Trade What is the Balance of Trade? The Balance of Trade (BoT) is the difference between the total value of exports and the total value of imports of a country within a period. It is also referred to as trade balance, commercial balance or net exports (NX). The Balance of Trade shows whether the country had achieved…

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Diluted EPS

Diluted EPS The Diluted EPS formula is equal to Net Income less preferred dividends, divided by the total number of diluted shares outstanding (basic shares outstanding plus the exercise of in-the-money options, warrants, and other dilutive securities). Also, the concept of diluted shares outstanding can be equated to a pie, of sorts. If more slices are…

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