Income Statement Example

The income statement summarizes a company’s revenues and expenses. Here’s an income statement example in order to measure a company’s health and the potential of its stock. What’s An Income Statement? To understand why an income statement is important, think of an internet startup that’s run out of the basement of the founder’s parents. Its … Read more

How to Read a Balance Sheet

A balance sheet is a snapshot of what the company owns and what the company owes. Being able to read and understand a balance sheet is a key component to doing investment research. What’s a Balance Sheet? And now for the bad news. From here on in, the material gets really, really dry. No more … Read more

How to Value a Business

Stocks aren’t just blips on a screen. They represent actual businesses, and you don’t know what you’re investing in until you learn how to value a business. The Recipe to Value a Business Here at Wall Street Survivor we like metaphors. We also like cake. So it shouldn’t come as a surprise that when you … Read more

Stock Market Bubbles

It’s a Trap! In 1996, Federal Reserve chairman Alan Greenspan made a speech about rising stock market bubbles in which he said: “But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions?” Those words, “irrational exuberance,” became Greenspan’s signature phrase. But what did he mean? “Irrational … Read more

How to Value a Stock

Introduction If you want to learn how to value a stock well…they aren’t priced like the items at your local grocery store. They are constantly changing, with dramatic results. Imagine going to the store and paying $20 for a loaf of bread that was $2 a week ago.  This article will teach you how to … Read more

How to Invest Your First $1000

Let’s Get Started Want to know how to invest your first $1000? Smart! Many people think waiting til they have a large sum saved up is a requirement before investing… Let’s assume you’ve dug up $1,000 from under your mattress and deposited it into a brokerage account. What now? Should you immediately plow it all on a … Read more

How to Start Investing: Best Brokerage for Beginners

Wall Street, here I come! OK, so you’ve read all about market risk, you’ve figured out your investment profile and you’ve completed the courses on how to analyze a stock. But how do you start investing? If you’re like most people, that’s exciting—but also a bit scary. After all, up to now it’s all been about … Read more

Small Cap Stocks: Investing in Growing Companies

Small Cap Stock Investing vs. Fishing Investing in small cap stocks is kind of like fishing… It’s easy to go out to your local fish store and simply buy fish. Anyone can do that. What most people can’t or won’t do is set out on the open waves of the ocean and do some actual fishing. But … Read more

Income Investing: The Importance of Fixed Income

What is Income Investing? Nobody wants another “entrepreneur” trying to sell their latest get rich quick scheme. We want investments designed to generate steady income—usually with an eye toward a secure retirement. In the stock market, we call this income investing. Income Investing One great “Get Rich Slowly” strategy is income investing. Income investing involves buying … Read more

Value Investing for Beginners

Introduction Value investing is a method of picking stocks that was pioneered in the 1930s—when the world was in the midst of the Great Depression. The idea behind it is simple: buy stocks that are cheaper than they should be. Of course that’s easier said than done. Finding stocks that are underpriced takes a lot of research. … Read more