Introduction to Tools and Tips to Evaluate Investments

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Investors want to know that the companies they buy are on solid footing. This tutorial covers tools and tips for evaluating investments.

What you will learn

  • Understand Company Earnings
  • Use Financial Statements to Evaluate Investments
  • Using Price/Earnings Ratio to Evaluate Stock
  • Use Price/Book Ratios to Find Value Investments
  • Asset Utilization Ratios Measure How a Company Is Managing Its Assets
  • Use Profitability Ratios to Compare Investments
  • Using Beta to Guide Your Investment Decisions

What do you know?

Introduction to Tools and Tips to Evaluate Investments

Investors have long had a lot of ways to find out whether a stock is a good one to buy. It’s not always about watching it in the markets and pouncing when the price is low—after all, it may be low for a bad reason. Many investors like to make sure that the company that issues an investment is on solid footing. That ensures a good chance that the investment will rise in price or pay out dividends.

This tutorial covers a number of tools and tips for evaluating investments. Though it is aimed at stocks, some of the principles covered here can be applied to other investments, such as bonds.