Category: FAQ

Warren Buffett’s history in school

A: Warren Buffett never had the intention of going to college. By 13, he was managing his own business as a paperboy. He ended up making more than $5,000 (equivalent to more than $71,000 in [..]

Why Could A Company Have A Negative Gross Profit Margin?

A: Gross profit margin shows how well a company generates revenue from the direct costs like direct labor and direct materials involved in producing their products and services.  Gross profit margins turn negative when the costs of production [..]

What Is a Ginnie Mae Security?

Ginnie Mae (or Government National Mortgage Association) allows mortgage lenders to obtain a better price for their loans in the capital markets. This allows lenders the flexibility to use the proceeds to make new mortgage loans [..]

Is Depreciation Or Amortization In Gross Profit?

Gross profit is the revenue earned by a company after deducting the direct costs of producing its products. For example, if it costs $15,000 to produce a car and it sells for $20,000, the difference of $5,000 is the gross profit on [..]

How Does Gross Margin and Net Margin Differ?

A: Gross margin and net margin are profitability ratios used to assess the financial well being of a company. Both gross profit margin and net margin or net profit margin are expressed in percentage terms and measure profitability as compared to [..]

What are soft dollars?

A: The term soft dollars refers to the payments made by mutual funds, as well as other money managers, to their service providers. The difference between soft and hard dollars is that instead of paying the service providers [..]

Nonconvertible debentures versus fixed deposits

A: Debentures and fixed deposits are two different ways of investing money through financial instruments. A debenture is an unsecured bond. Essentially, it is a bond that is not backed by a physical asset or [..]

How can I purchase stock directly from a company?

A: There are a few circumstances in which a person can buy stock directly from a company. The following is meant to cover some of these instances, which include direct stock purchase plans, dividend reinvestment [..]