common stock

Government Stock Purchases??

I was very recently reading about the government giving serious consideration to regularly engaging in stock purchases to help offset subdued growth and inflation. I must admit to cringing at this notion. […]

I Keep Hearing that the Stock Market Needs to Correct

Whether you invest in the stock market or just read the financial news, you are probably coming across opinions expressed with regard to an anticipated stock market correction. After all, the market has been on a steep incline pretty much since it bottomed in the spring of 2009 during the hard recession days. Couple that with the fact that there are a lot of people who don’t “feel” like their financial situations have improved all so much and the result is that the sustained rise in the stock market can leave a person scratching his/her head for an answer as to how it keeps going. […]

September 12th, 2014|Balance Sheet, common stock, Risk|0 Comments

Don’t Drink the Kool-Aid

I want to continue a theme I started two weeks ago with a post titled “Making the Minimum Credit Card Payment” and followed-up last week with another post called “Choosing Weak Balance Sheets and High D/E Ratios.” I know some of you read the  May 27 Bloomberg piece linked next because you wrote me about it this past week (Thank you for that):

http://www.bloomberg.com/news/2014-05-26/bad-credit-no-problem-as-shares-of-balance-sheet-bombs-rise-94-.html

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The Income Statement and Balance Sheet Equity

My book, “Choose Stocks Wisely,” is all about the importance of the balance sheet equity (described as Stockholders’ Equity on the balance sheet) toward properly evaluating the quality and worth of a share of common stock. When you buy a share of common stock in a company, you are buying a share of the equity. So, analyzing the balance sheet equity of a company before investing money into that company is not only logical but also essential.

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Common Stock and Preferred Stock

Recently, a reader of my book, “Choose Stocks Wisely,” asked about the difference between common stock and preferred stock since he had come across these two types of stock in books he had read. This is an important issue since some corporate balance sheets have both types of stock listed under Stockholders’ Equity.

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