Accounting Equations Overview, Formulas & Examples Lesson

In this form, it is easier to highlight the relationship between shareholder’s equity and debt (liabilities). As you can see, shareholder’s equity is the remainder after liabilities have been subtracted from assets. This is because creditors – parties that lend money such as banks – have the first claim to a company’s assets. To begin […]

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Bull Market Guide: The Different Phases & How To Invest During One

Some investors watch for retracements within a bull market and buy the dip during these periods. There is no specific and universal metric used to identify a bull market. Nonetheless, perhaps the most common definition of a bull market is a situation in which stock prices rise by 20% or more from recent lows. In “Macbeth,” […]

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What Is Annual Return? Definition and Example Calculation

An annualized total return is the geometric average amount of money earned by an investment each year over a given time period. The annualized return formula is calculated as a geometric average to show what an investor would earn over a period of time if the annual return was compounded. You can find annualized total […]

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