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2025/3/17
Equity is a fundamental concept of business ownership that influences corporate governance, capital raising, and investment decisions. This article begins with the basics of equity, explaining how shareholders participate in a company’s operations through ownership. It outlines shareholders’ rights and obligations, including the right to profit distribution, voting rights, claims to residual assets, and access to company information. The article also explores various types of equity—such as common stock, preferred stock, and restricted shares—as well as the investment risks and responsibilities shareholders must bear. Through these discussions, readers gain a clearer understanding of how equity functions.
# Beginners Guide
# Financial Lessons
# Investment
# Stocks
# Taiwan
2025/2/20
Unlike its intuitive meaning, goodwill in accounting refers to a key item that reflects a company’s value during a merger or acquisition (M&A). It represents a company’s intangible assets and signifies the acquiring firm's recognition of the target company's brand, customer relationships, and market position. This article provides an in-depth analysis of goodwill’s critical role in M&A, explaining its underlying significance, calculation methods, and impact on financial statements. Finally, it illustrates these concepts with the well-known case of Facebook’s acquisition of Instagram.
# Fundamental Analysis
# Editor's Pick
2024/12/23
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a widely used financial metric for assessing a company's core profitability, eliminating non-operational factors that may distort financial performance. This article explores the definition, formula, and advantages of EBITDA, along with practical applications. Additionally, the article discusses the limitations of EBITDA, including its exclusion of capital expenditures and comparability issues as a non-GAAP metric.
2024/10/18
FedWatch is a tool developed by the Chicago Mercantile Exchange (CME) to predict the probability of future rate hikes or cuts by the Federal Reserve. It calculates these probabilities based on the prices of "30-day Federal Funds" futures, offering insights into market expectations. The tool provides both short-term and long-term interest rate forecasts and includes the Fed officials’ dot plot to help analyze policy direction. With these features, investors can adjust their strategies in line with market expectations, preparing for potential rate changes in advance.
# Financial Tools
# Macroeconomics
# USA
# Central Bank
# Federal Reserve
Gold has a wide range of uses, including jewelry, industrial applications, central bank reserves, and private investment. Its strong hedging characteristics make it particularly appealing to investors as a store of value, especially during periods of inflation and economic instability. There are various ways to invest in gold, ranging from physical gold to gold ETFs, such as Yuanta S&P GSCI Gold ER Futures ETF (00635U) and SPDR Gold ETF (GLD).
# Financial Products
Nvidia's 1-for-10 stock split attracted market attention by making the stock more accessible to a broader range of investors. A stock split is a way to restructure a company's shares, adjusting the price per share while altering the total number of shares without changing the company's total market capitalization. Stock splits can be either forward or reverse. Forward splits reduce the share price, increase liquidity, and attract more investors, and reverse splits works vice versa. Although a stock split does not affect the company's intrinsic value, it can influence market psychology and investor behavior.
ROA and ROE are indicators, as they help assess a company’s long-term investment value. ROA (Return on Assets) reflects how efficiently a company uses its assets, showing how well the business converts assets into profits over a specific period. ROE (Return on Equity) measures a company’s ability to generate returns for shareholders, indicating how efficiently the company uses shareholders' capital to make profits. Both ROA and ROE are useful for comparing companies within the same industry, revealing management capability and long-term trend shifts.
# Investment Strategy
A narrow-based security index refers to an index dominated by a small number of constituent stocks, leading to a higher concentration. According to the U.S. Commodity Futures Trading Commission (CFTC), an index is considered narrow-based if it meets any of the following criteria: it has fewer than 9 constituent stocks, a single stock accounts for more than 30%, or the top 5 stocks together exceed 60% of the total index weight. In contrast, a broad-based index has a larger number of constituents and covers a wider market scope. Recently, due to the rise in TSMC's stock price, the Taiwan Stock Exchange Weighted Index (TAIEX) has been reclassified as a narrow-based index, drawing significant market attention.
The Statement of Cash Flows is one of the three main financial statements in a company's financial reports, providing insight into the actual cash movement within a company. This report helps investors assess the company's cash flow and financial stability by showing the inflows and outflows of cash. The cash flow statement is divided into three main sections: operating cash flow, investing cash flow, and financing cash flow. These figures help investors understand how a company manages its operations, investments, and financing activities.
The Price to Earnings Ratio (P/E) is a key tool used by investors to evaluate a stock’s value. This article introduces the basic concept of the P/E ratio, its calculation, and its application in investment decisions. The P/E ratio reflects the market’s expectations of a company’s growth and provides a sense of how long it might take for an investor to recover their investment through earnings. It is useful for comparing a company’s valuation against its peers. This article also uses Nan Ya PCB Corporation as a case study, showing how PE ratio fluctuates with market expectations.
