The price-to-earnings ratio, or P/E, is determined by dividing the closing price by the most recently available earnings per share (EPS), based upon primary EPS for the past four quarters. The P/E ratio is one of the most commonly used measures to analyze the price of a stock. It cannot be used alone to make [...]

Gross National Product, or GNP, is a number that represents the total market value of the output of a nation’s good and services annually.The GNP is generally held to be the best indicator of a country’s economic health. To consider GNP as an equation, here’s how it adds up: GNP = C + I + [...]

Dollar-cost averaging basically means that you invest a certain amount of money at specific intervals over a period of time, usually years. This means that if you are investing in stock, the price of the stock you are buying will go up and down; when the price is down, your fixed amount buys more shares. [...]

The next time you feel like complaining about the coins weighing heavily in your pockets, think about these alternative forms of currency. The Babylonian shekel refers to a measure of barley. In ancient Greece, they used iron sticks as money. Cowry (or snail) shells paid the bills in ancient China and many parts of the [...]

A credit score is a number indicating your level of credit risk to potential lenders, typically a higher number represents lower risk. It is arrived at using statistical models involving different numbers from your credit report. The models were created using payment data from thousands of debt holders, which make the scores extremely effective in [...]

You’ve heard people talk about the real value of a company. You’ve heard about value investors like Warren Buffet, and maybe even Benjamin Graham. But what is intrinsic value? Intrinsic value is simple by definition. It’s the actual value of a security (stock or company) taking into account everything. The intrinsic value can be found differently [...]