Equity accounting is a method of reporting a company's profits from the operations of an affiliated company that it has an interest in but does not own outright.

Quantitative methods and the courses in which they are taught often present as if they are neutral, value-free and unbiased. However, the history of quantitative methods demonstrates an entanglement ...

Dividends are those delightful distributions of cash you receive from your shares of stock and mutual funds. Corporations also can receive dividends by owning dividend-paying stock of other ...

Market volatility and drawdowns remind us of the role "hedging" can have in portfolios. Hedging in its simplest form is purchasing securities in order to reduce portfolio risk. The purchased ...

Businesses purchase ownership stakes in other companies to achieve objectives they cannot achieve alone. The ownership percentage and that ownership's character determine how the business accounts for ...

For most investors, the proper way to account for your investing profits and losses is with the cost method of accounting. This method is not the only choice, however. For investments where the ...

After graduating with a finance degree, Taylor Jensen started her career as a broker at a major financial services company. Although she loved interacting with clients, she craved more autonomy and ...

Equity represents the accounting (book) value of a company or it can represent ownership of a specific asset, such as a car or house. Learn more about equity in finance and how investors use it to ...

Discover how the equity multiplier measures asset financing through stock versus debt, and what it means for company leverage ...