Search Results

* This is an advanced topic that is mainly relevant for financial modeling, in-depth company analysis, and understanding business fundamentals. Since it is not essential for the average investor, it is presented here for general knowledge. The Discounted Cash...

Stock buybacks are one of the most commonly used financial strategies by companies to manage their capital structure and enhance shareholder value. While they can be seen as a sign of confidence in the company itself, they can also have side effects that need ...

Capital increases are a key financial tool used by companies to obtain additional resources. They are a common strategy in financial markets and can significantly impact a company's structure and value. However, they can also bring risks and consequences for s...

Acquisitions Often Have a History of Poor Outcomes The evidence is clear: while acquisitions tend to benefit sellers, they often fail to generate value for buyers. This is typically due to three main reasons: 1. Sellers Control the Timing of the Sale In mos...

1. Introduction to the Insurance Sector🛡️ 1.1. History and Evolution of the Insurance Industry 📜 The concept of insurance is not a modern invention; its roots extend to early civilizations. In Mesopotamia, for example, the Code of Hammurabi, dating back to a...

Oil, often called “black gold,” is the backbone of the global energy system. Since the 19th century, it has driven industrialization and shaped global geopolitics. Investing in oil requires understanding a complex market that spans from crude extraction to the...

🔬1. Introduction - Pharmaceutical Sector 🧬 The pharmaceutical sector stands as a fundamental pillar of the global economy and public health, attracting investor interest due to its distinctive nature and long-term growth potential. 1.1. History and Evoluti...

1. Introduction to the Mining Sector 1.1. A Pillar of Civilization: History and Economic Importance Mining is not an invention of the industrial era, but one of the oldest and most fundamental economic activities of humanity, with roots stretching back mille...

The world of investing is an attractive environment for those looking to grow their wealth. However, it is also fertile ground for fraud and scams. Below is an in-depth analysis of how the main scams operate, how to identify them, and how to protect yourself. ...

Investment markets are fundamental to the global economy, as they facilitate the buying and selling of financial assets such as stocks, bonds, commodities, and derivatives. Among these markets, stock exchanges play a crucial role by providing a regulated envir...

1.    Concept of Bankruptcy and Liquidation When a company goes bankrupt, a liquidation process of its assets is activated to pay its creditors in a legally predefined order. This process follows a payment hierarchy that determines who has priority in recover...

1.    Fear & Greed Index The Fear & Greed Index, developed by CNN Business, is an indicator that measures market sentiment, determining whether investors are acting out of fear or greed. It is based on the premise that markets tend to behave irrationally at e...

1.    Constant Currency Constant currency is adjusted for inflation to reflect the real value of money over time. In economies with high inflation, financial statements are presented in constant currency to avoid distortions in accounting values. This is achi...

Financial markets are fundamental to the global economy and require strict regulation to ensure their proper functioning. Regulatory entities play a crucial role in overseeing markets, protecting investors, and preventing fraudulent practices. This document ex...

Stop Loss: An automatic sell order set to limit losses on an investment. It is triggered when the asset's price drops to a predetermined level set by the investor. Take Profit: An automatic sell order executed when the asset reaches a target price set...

ADR (American Depositary Receipt): An ADR is a certificate issued by a U.S. bank that represents shares of a foreign company, allowing them to trade in U.S. markets. Example: Alibaba Group trades on the New York Stock Exchange through ADRs. ISIN (Internat...

Financial markets do not move solely based on economic data or business fundamentals; emotions play a crucial role in investor behavior. Market psychology describes how investment cycles are driven by collective feelings, which can lead to speculative bubbles ...

📌 Confirmation Bias 🔹 Tendency to seek, interpret, and remember information that confirms our pre-existing beliefs while ignoring contradictory data. 📌 Anchoring Bias 🔹 Fixating on an initial reference point (such as a stock’s purchase price) and basing fut...

Deciding whether to sell or hold a stock is a key dilemma for any investor. Often, the purchase of an asset is based on thorough analysis, but the sale may be carried out impulsively or without a clear strategy. This guide will address the rational and emotion...

Warren Buffett and Charlie Munger are two of the most influential investors of all time. Through their leadership at Berkshire Hathaway, they have built an empire based on long-term investment principles, discipline, and exceptional business vision. Their stra...