Stocks made Simple

Most of the people think that it is very difficult to invest in stocks and only those with heavy knowledge about stock market can invest but it is not true. Now it has become very easy to invest in stocks, with websites like bidnessetc.com coming in it is now very simple to make a stock investment. You just need to go to this site and it will give guide you through the whole process of your investment. It has all the updated prices, all the stock market news and forecasts about different stocks. This website has made stock investment very simple for any stock investor. Even if you are new to this business this website will be very useful to you.

It has all the articles presented in an interesting and humorous way; it has animated characters and different type of displays to amuse you along with guidance. It is very difficult for a common man to interpret financial ratios and other financial indicators. For example debt to equity ratio wouldn’t make sense to common man and it is very necessary to translate this into understandable language. Similarly if things are explained in finance terms only this will complicate things for a common man, it is very important to have such information, which everyone can understand. Bidnessetc.com has very simple way of explaining things and any person can understand those things. If you are new to stock investment and don’t know much about stock market then do visit bidnessetc.com.

You can easily do a fundamental analysis of a stock based on the available information, you need to estimate the cash flows of coming year based on the information available. You have all the sales and expenses data and company’s capital structure is given, it is very easy to estimate the cash flows of the company. These cash flows are projected at a certain growth rate to an indefinite period of time, discounted value of these cash flows will give the current value of the firm. You also need to pay attention to key financial health indicators; one of the widely used indicators is z-score. Z-score assigns values based on 5 different factors. You need to pay close attention to ratios like asset turnover, inventory turnover and cash cycle etc. If company has a large inventory turnover it is not a good indicator and the operating risk of the company will go up which means the total risk of that company stock will also be higher. Similarly if cash cycle of a company is very weak means it is very difficult for company to manage cash for its regular operations, this will also add to the total risk of the company. If a company has a very high debt to equity ratio this will substantially increase the financial risk of the company, high debt means the company has a high amount that it has to pay to debtors in any case. This adds to the bankruptcy and agency costs.