What is CFD trading and how does a Contract for Difference work?
CFD trading provides access to a wide range of markets without the need to buy the underlying assets. With CFDs, you can trade stocks, forex, indices, and commodities from a single account. In this guide, we will explain all you need to know about CFDs and how they can be used to trade the financial […]
What is gross domestic product (GDP)?
Gross Domestic Product (GDP) is the most widely-recognised way to measure the economic performance of a country. It is extensively relied upon by analysts, investors, industry professionals, and policymakers. QUOTE “Improving the quality of our lives should be the ultimate target of public policies. But public policies can only deliver the best fruit if they […]
Beginner’s guide to diversification in investing
It’s not possible to become a successful investor without understanding and implementing the timeless principle of diversification. QUOTE “If you invest and don’t diversify, you’re literally throwing out money. People don’t realise that diversification is beneficial even if it reduces your return. Why? Because it reduces your risk even more.” Jeff Yass This article will […]
How to read financial statements?
Understanding financial statements is vital to long-term business and investing profitability. Reading and understanding financial statements accurately and quickly is a hallmark of the most successful investors. This article will guide you through the ins and outs of the major financial statements so you can quickly and accurately gauge the financial health of a given […]
What is spread betting and how does it work? Examples & UK tax rules
Spread betting lets you trade on financial price movements using leverage, meaning you can access markets without buying the underlying asset. Here is how it works and what you need to know before starting. QUOTE Risk comes from not knowing what you’re doing.– Warren Buffett Please note that the information provided in this article applies […]
Brokerage account vs ISA vs GIA
Your investment account choice can determine how much tax you pay and what you can invest in. It is well worth understanding the differences between a brokerage account, an individual savings account (ISA), and a general investment account (GIA). Big ideas QUOTE One way to make sure you don’t lose assets in the future is […]
What is an ISA and how does it work?
Some choices are simple. Let’s say you have two options for your hard-earned savings and investments. Option 1 is giving money to the taxman and Option 2 is keeping all your money. If you are a UK tax resident aged 18 or over, you do have exactly that choice with Individual Savings Accounts (ISAs). Tax […]
CapEx vs OpEx: Differences, Formulas, and Calculation
Every business incurs expenditures since making money requires spending money. These expenses are essential for driving growth, maintaining operations, and generating revenue. Business success depends on strategic spending, whether it’s for staffing, marketing, product development, or infrastructure. As an investor, you want to know what a company is spending on to make sure you agree. […]
Revenue vs Profit: Main Characteristics and Differences
Revenue and profit are entirely different financial terms, but are commonly conflated by investors. Let’s examine each financial concept in detail. QUOTE Remind people that profit is the difference between revenue and expense. – Scott Adams (American author and cartoonist) Big ideas What is revenue? DEFINITION Revenue is simply the total amount of income generated […]
Weighted Average Cost of Capital (WACC): Definition, Formula, Examples
The Weighted Average Cost of Capital (WACC) is the cost of capital from all sources – stocks, preferred stocks, bonds, and other instruments – after tax has been applied to the cost of debt. Each source of debt and equity are proportionally weighted in creating the average. QUOTE The cost of capital is what it […]