Investment and Finance

You get this ratio by dividing the company's actual cash flow by the amount of dividends to be paid. If the company’s ratio is 2 or higher, then cash flow is double the dividend payout and is usually a sign of a sound company.

The Dow Jones Average is comprised of the Dow Jones Industrial Average (DJIA), the Down Jones Transportation Average (DJTA) and the Dow Jones Utility Average (DJUA). Currently, there are 30 industrial stocks in the Dow Jones Industrial Average, which represents about one-fifth of the value of all U.S. Stocks.
The Dow Jones Transportion Average includes 20 stocks and there are 15 stocks in the Dow Jones Public Utitliy Average.
The composite average includes these 65 stocks collectively. The Dow companies are weighted by stock price instead of capitalization, and thus companies of different sizes get the same weighting if their stock price is the same. Dow Jones Average is the best known U.S.index of stocks. It contains 30 stocks that trade on the New York Stock Exchange.
The Dow Jones Average is a barometer of how shares of the largest U.S.companies are performing.
There are thousands of investment indexes around the world for stocks, bonds, currencies and commodities

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).

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

A company's health or financial position is shown on a balance sheet. The balance sheet reflects a business' financial position at a particular date in time. The typical balance sheet displays the business' assets, liabilities and stockholders' equity. Assets and liabilities are classified into current and non-current categories. Assets are normally debit balances and include what a business owns. Current assets generally relates to anything that can be converted into cash within one year. Fixed assets are more permanent, referred to as long term,(more than 1 year) which includes such assets as buildings, land, and equipment. Liabilities are normally credit balances and what the business owes. Current liabilities generally mean anything which is owed within one year. Long term liabilities are debts expected to be paid back after one year, such as mortgages and loans. The difference between assets and liabilities is called stockholders' equity or net worth. Therefore the basic balance sheet equation is - Assets minus Liabilities = Stockholders' Equity or Assets = Liabilities plus Stockholders' Equity. Most audited financial statements are comparative in nature illustrating a period verses a prior year period. Footnotes to the balance sheet are used to achieve adequate, informative disclosure when more detail is required.

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.