Finelo Blog

Investment Policy Statement: Template, Example & Review

An investment policy statement (IPS) is a written rulebook for investing decisions.

Chart Analysis

Ichimoku Cloud: Formula, Signals & Limitations

The Ichimoku Cloud is a technical-analysis indicator that combines trend, momentum, and potential support/resistance into one chart view.

Holding Period Return: Formula, Example & Annualization

Holding period return (HPR) is the total percentage gain or loss on an investment over the exact time you owned it.

Form 8-K: What It Is and How Investors Can Read It

Form 8-K is a “current report” publicly reporting companies file with the SEC to disclose certain important corporate events between regular annual Form 10-K and quarterly Form 10-Q reports.

Fixed vs Variable Costs: Definitions, Examples, and Break-Even Analysis

Fixed vs variable costs describes how expenses behave when activity changes. A fixed cost stays the same in total over a relevant period, even if output, sales, or service volume rises or falls.

Financial Leverage: Ratios, Examples & Risks

Financial leverage means using borrowed money or other fixed financing obligations to control more assets than equity capital alone would allow.

Federal Funds Rate: How It Works & Why It Matters

The federal funds rate is the overnight interest rate at which depository institutions lend balances held at Federal Reserve Banks to other depository institutions.

Expense Ratio: Costs, Returns & Comparison

An expense ratio is the annual percentage of a mutual fund’s or ETF’s average net assets used to pay the fund’s operating expenses.

Equity Risk Premium: Inputs, Valuation & Example

Equity risk premium is the extra return investors expect, require, or have historically earned from owning stocks instead of a lower-risk asset such as Treasury bills or bonds.

EBITDA Margin: Formula, Example & Interpretation

EBITDA margin is a profitability ratio that shows how much EBITDA a company generates for each dollar of revenue.

Earnings Call: How to Read It & What to Check

An earnings call is a company-hosted conference call—usually after quarterly or annual results—where management explains recent financial performance, discusses business conditions, and answers…

DuPont Analysis: Formula, Example & Interpretation

DuPont analysis is a financial statement technique that breaks return on equity (ROE) into the forces that create it: profit margin, asset turnover, and financial leverage.