We explain the 101 most important stock market terms and decipher financial jargon with simple definitions and practical examples.| Liberated Stock Trader
The key tactics to improve your short selling strategy are: use fundamental and technical analysis, use the right charts, indicators, and proven bearish patterns. Finally, ensure proper risk management and use leverage wisely.| Liberated Stock Trader
Return on Common Stockholder's Equity (ROCE) is a financial ratio measuring the profitability relative to the common equity shareholders have invested in a company.| Liberated Stock Trader
The Net Profit Ratio is a key financial ratio for better investing, telling us how efficiently a company generates profit compared to its revenue and competitors.| Liberated Stock Trader
The three main types of financial statements are the balance sheet, income statement, and cash flow statement. Each one provides a different perspective on a company's finances.| Liberated Stock Trader
A balance sheet is a financial statement showing a company's assets, liabilities, and shareholders' equity at a specific time. Assets are anything of value that a company owns, including cash, accounts receivable, inventory, and property. Liabilities are any debts or obligations a company owes, such as accounts payable, loans, and leases.| Liberated Stock Trader
Financial leverage refers to using borrowed funds to increase the potential return on investment. It magnifies potential gains and losses, vital to a company's capital structure.| Liberated Stock Trader
Total asset turnover is a financial metric used to assess a company's efficiency in using its assets to generate sales. It is a vital ratio for investors and analysts seeking to understand how well a company utilizes its asset base to produce revenue.| Liberated Stock Trader
Return on Average Equity (ROAE) is a financial performance metric that indicates how effectively a company generates profit relative to its average shareholders' equity.| Liberated Stock Trader