Finelo Blog

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

Chart Analysis

Donchian Channel: Formula, Example, and How to Read It

A Donchian Channel is a technical analysis indicator that plots the highest high, lowest low, and midpoint over a chosen lookback period.

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Investing

Discounted Cash Flow (DCF): Estimating Today’s Value From Future Cash

Discounted cash flow, or DCF, is a valuation method that estimates what expected future cash flows may be worth today.

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Financial Literacy

Discount Rate: Inputs, Valuation & Example

A discount rate is the rate used to convert future cash flows into today’s value.

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Investing

Default Risk: How It Works, Example & Risks

Default risk is the possibility that a borrower will fail to make required debt payments on time, such as interest or principal on a bond.

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Financial Literacy

Current Ratio: Formula, Example & Interpretation

The current ratio is a liquidity measure that compares a company’s current assets with its current liabilities.

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Investing

Credit Spread: Formula, Example & Interpretation

A credit spread is the difference between the yield on a risky debt instrument and the yield on a comparable lower-risk benchmark, usually a Treasury security with a similar maturity.

Finelo Team
Investing

Corporate Bonds: Yield, Costs & Risks

Corporate bonds are debt securities issued by companies to raise money. When you buy one, you are lending to the issuer rather than buying ownership; Investor.gov describes a bond as “a debt…

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Financial Literacy

Contribution Margin: Formula, Break-Even & Example

Contribution margin is sales revenue minus variable costs—the amount left from each sale to help cover fixed costs and, after those fixed costs are covered, operating profit.

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Investing

CAPM Formula: How to Calculate Expected Return

The CAPM formula is expected return = risk-free rate + beta × (market return − risk-free rate).

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Financial Literacy

Capital Gains Tax: Rates, Rules & Examples

Capital gains tax is the tax that may apply when you sell a capital asset—such as a stock, fund, cryptocurrency position, real estate interest, or other investment—for more than your tax basis in it.

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Investing

Bond Ratings: Grades, Defaults & Risks

Bond ratings are letter-grade opinions about an issuer’s credit risk: the chance that a borrower may fail to make promised interest or principal payments on a bond.

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Investing

Bond Ladder: How It Works, Example & Risks

A bond ladder is a portfolio of bonds arranged so different pieces mature at different times.

Finelo Team