Finelo Blog

Learn investing and trading, one article at a time. Practical guides, beginner-friendly explainers, and learning tips from the Finelo team.

Financial Literacy

Risk Free Rate: Inputs, Valuation & Example

The risk free rate is the baseline return used in finance to estimate what an investor could earn without taking meaningful default or market risk.

Finelo Team
Investing

Reverse Stock Split: Shares, Price & Investor Impact

A reverse stock split is a corporate action that consolidates a company’s shares into a smaller number of shares.

Finelo Team
Financial Literacy

Real Interest Rate: Inflation, Formula & Example

A real interest rate is an interest rate adjusted for inflation. It estimates how much purchasing power a saver earns, or how much purchasing-power cost a borrower pays, after prices change.

Finelo Team
Investing

Proxy Statement: How to Read It & What to Check

A proxy statement is the shareholder voting document a public company sends before an annual or special meeting.

Finelo Team
Financial Literacy

Prime Rate: Loans, Costs & Market Impact

The prime rate is a benchmark interest rate that banks use as a starting point for pricing some loans, especially short-term business credit and variable-rate consumer credit.

Finelo Team
Chart Analysis

Pivot Points: Formula, Signals & Limitations

Pivot points are chart-based price levels used to estimate where an asset might encounter intraday support or resistance.

Finelo Team
Financial Literacy

P/E Ratio: Meaning, Formula, Examples, and Limits

The P/E ratio, or price-to-earnings ratio, compares a company’s stock price with its earnings per share.

Finelo Team
Trading

Payment for Order Flow

Payment for order flow (PFOF) is compensation a broker may receive for routing customer orders to a market maker, exchange, or other trading venue for execution.

Finelo Team
Financial Literacy

Operating Leverage: Ratios, Examples & Risks

Operating leverage measures how sensitive a company’s operating profit is to changes in sales.

Finelo Team
Chart Analysis

On Balance Volume: Formula, Signals & Limitations

On balance volume, or OBV, is a technical analysis indicator that compares price direction with trading volume.

Finelo Team
Financial Literacy

NOPAT: Formula, Calculation & Example

NOPAT means net operating profit after tax: an estimate of the after-tax profit a company generates from its core operations before the effects of financing choices such as debt interest.

Finelo Team
Financial Literacy

Net Debt: Formula, Calculation & Example

Net debt is a company’s interest-bearing debt minus cash and cash equivalents. It estimates how much debt would remain if the company used its most liquid resources to repay borrowings.

Finelo Team