Equity

A broad based term used in business. It has several definitions. The primary definition is associated with the equity section of the balance sheet. It refers to the financial position of the owners of a business.

Debt Ratio

Debt Ratio

Every business buys on account whether it is a traditional vendor account like that found in retail or simply using a credit card.   A third party provides credit which creates debt for the business.    The debt ratio reflects the percentage of assets covered by debt. 

Penny Stocks- Introduction

Penny Stocks

Those small publicly traded businesses with share prices of less than $5 and capitalization of less than $50 million are referred to as penny stocks. Penny stocks may trade on any of the major stock exchanges. For investors the risk is generally greater and the chance of instant success is remote at best. To counter this relatively volatile environment an investor can participate for a relatively low investment dollar amount.

Financial Statements for the Small Business

Financial Statements

Financial statements serve the purpose of presenting economic activity and status related to a particular date and over a particular time frame.  Accountants record monetary transactions and via financial reports present the information in an easy to understand format.  The financial statements for a small business do not have to comply with those of publically traded operations.

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