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

Operating Leverage: Ratios, Examples & Risks

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

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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.

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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.

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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.

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Investing

Municipal Bonds: Taxes, Yield & Risks

Municipal bonds are debt securities issued by states, cities, counties, and other government entities to finance public needs such as schools, roads, utilities, and day-to-day obligations.

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Investing

Money Market Fund: Yield, Costs & Risks

A money market fund is a mutual fund that invests in cash, cash equivalents, and short-term debt securities.

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Trading

Market Order vs Limit Order: Which One Fits the Trade?

A market order seeks immediate execution at the best available current price; a limit order seeks execution only at a specified price or better.

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Trading

Market Maker: Costs, Spreads & Execution

A market maker is a firm that stands ready to buy or sell a security at publicly quoted prices, helping create a two-sided market with both a bid and an ask.

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Investing

Margin of Safety: Formula, Examples & Limitations

Margin of safety is the gap between an investment’s estimated intrinsic value and the price an investor would be willing to pay.

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Chart Analysis

Keltner Channel: Formula, Signals & Limitations

A Keltner Channel is a technical-analysis indicator that plots price inside three lines: a moving-average middle line, an upper band, and a lower band.

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Investing

Junk Bonds: Yields, Defaults & Risks

Junk bonds are high-yield corporate bonds issued by companies with below-investment-grade credit ratings or otherwise elevated credit risk.

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Investing

Investment Thesis: Template, Example & Review

An investment thesis is a clear, testable explanation of why an investment may fit a goal, what assumptions must be true, what risks could make the idea wrong, and what evidence would cause a review.

Finelo Team