Monthly Archives: May 2018

A limit order is an instruction issued by an investor to a broker to only buy or sell shares at a particular price threshold. For example, Joan might want to buy stock in Smith Computers, but only at $20 a share or cheaper. She can place a buy limit order with her broker to begin buying […]

Accrual accounting refers to the practice of recording financial transactions when they are incurred as opposed to when cash is actually transferred. This is in contrast to cash accounting, in which transactions are recorded only after money has changed hands. For instance, a bakery buys a new oven in May, but the payment is not due […]

Book value, or net book value is used to indicate how much a company would be worth if it discontinued operations immediately, sold off its assets and paid off all of its debts. It is calculated by subtracting liabilities from tangible assets. For instance, a printing company owns $150,000 in real estate, supplies, delivery trucks and printing […]

The Foreign Exchange Market, often shortened to Forex or FX, is the market in which the world’s currencies are traded. It is both the largest and most liquid market in the world; average traded values can be in the trillions of dollars per day. It does not have a central marketplace as trade is conducted over the […]