Investment and Finance

The index represents 500 companies selected by a special committee which add or subtract companies based on their dominance in various industry sectors. The companies are primarily large-capitalization stocks traded on the New York Stock Exchange, and comprise the majority of the market’s value.

The index consists of 3,000 stocks comprising 98% of the total equity market capitalization. The Russell 3000 consists of the Russell 1000 (large-cap index) and the Russell 2000 (bottom 2000 stocks which are small-cap stocks). The indexes are based purely on size and not dependent upon subjective committee selections.

Nasdaq stands for the National Association of Securities Dealers Automated Quotation System. Over the counter dealers are linked with the purchasers and sellers of securities with this system. This index is based on companies in the National Market System which covers stocks that are not on an exchange, but rather are traded over the counter. The Nasdaq is not an organization, but an intangible market for the purchase and sale of securities not listed by the organized exchanges like the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX).

The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all stocks actively traded in the United States. Currently, the index contains over 4,100 components.[1] The index is intended to measure the performance of most publicly traded companies headquartered in the United States, with readily available price data, (Bulletin Board/penny stocks and stocks of extremely small companies are excluded). Hence, the index includes a majority of the common stocks and REITs traded primarily through New York Stock Exchange, NASDAQ, or the American Stock Exchange. Limited Partnerships and ADRs are not included. It can be tracked by following the ticker W5000.

Financial statements are the principal means of reporting financial information to people within an organization. This includes the management and employees, as well as those outside the business, such as investors, banks, suppliers and others.
Publicly traded corporations must comply with strict specific requirements for financial statement reporting. The requirements are stated in the Generally Accepted Accounting Principles.
Non-publically traded corporations usually do not need audited financial statements unless required for bank loans.
The basic 4 financial statements are the Balance Sheet, the Income Statement, the Statement of Retained Earnings and the Statement of Changes in Financial Position. Often the Statement of Retained Earnings is combined with the Income Statement. Following the financial statements are the Notes to financial statements which are an important source of information on the accounting policies, procedures, calculations, and transactions underlying entries in the financial statements.
Speak to your local CPA about your Financial Statement needs

Current assets include: Cash, petty cash, accounts and notes receivable, inventories and any other item that can be converted into cash within one year.

Assets include: Cash, land, buildings, merchandise, equipment and anything the business owns that has monetary value.

Fixed assets are: Land, buildings, equipment, machinery, fixtures, furniture, office equipment and tools - less accumulated depreciation.

Depreciation is the systematic charging of a portion of the costs of fixed assets against annual revenues over a period of time.