Author Archives: HTMW Team

The HowTheMarketWorks team is dedicated to make learning about investing fun and easy for new investors of all ages. Whether you are preparing for retirement and want to have greater control of your assets, thinking about day trading as your career, or are still in school taking a personal finance class, we have something for you!

Investing in Latvia

Latvia is an EU member country that experienced superior GDP growth rates prior to the financial crisis in 2008. It underwent significant privatization, which resulted in large foreign direct investment inflows. Its economy was ranked first among developing countries until 2008.

Investing in Belgium

Belgium is an EU member located in Western Europe. It has a strong industrialized economy, well-developed transportation infrastructure, and a highly productive work-force making it an attractive destination for foreign capital.

Investing in Italy

Italy is an EU member country and one of G-8 leading industrialized economies, having the seventh largest economy in the world. Its thriving small and medium enterprises play an important economic role.

Investing in Ireland

Ireland is an EU member country with a knowledge-based economy and strong industries in services and technology. With attractive corporate tax rates, Ireland has been ideal destination for multinational corporations.

Investing in Hungary

Hungary is an EU member country with a medium-sized, liberal economy that is rapidly developing. It has the 5th largest economy in Central and Eastern Europe, with major exports in machinery, chemicals, textiles, and agricultural products.   Hungary’s Main Industries  Hungary is economically known for its strength in: Agriculture Sector Wheat Corn Sunflower Potato Sugar Read More…

Investing in Peru

Peru is a Latin American country with an emerging, market-oriented economy that has been among the top performers in South America. Rich in natural resources, it is a major exporter of gold, copper, zinc, and fish.

Investing in Portugal

Portugal is an EU member country with a high-income and service-based economy. It enjoys vast forests, has a strong industrial base, and is an important agricultural exporter.

Investing in Romania

Romania is an EU member country, which has experienced positive foreign direct investment and GDP growth following privatisation initiatives over the last decade. It has an upper-middle income economy strong in its industrial and agricultural sectors.

Investing in Austria

Austria is an EU member and currently the 12th richest country in the world. It has experienced sustained economic growth and attracts many foreign investors. Austria is home to internationally reputable law firms and banks, and has a vibrant tourism sector.

Investing in Argentina

Argentina is a South American country that is one of the G-20 economies. It is the third largest economy in Latin America and has the highest GDP per capita in its region. It possesses plenty of natural resources, a strong agricultural sector, and a well-educated population.

Investing in Other Countries

Recently there has been a rise of emerging markets. As you would expect, the top countries for investment include China, India, and Brazil. Poland has moved up 16 rungs to weigh in at No. 6. Other countries to enter the top 25 include: Romania, Saudi Arabia, Chile, and Egypt.

Free Cash Flow

Free Cash flow is the cash available to all the capital providers of a company. There are two types of free cash flows: 1) Cash flow available to pay out to all capital providers and 2) Free Cash Flow to Equity (FCFE).

Form-8K

The Form-8K is a SEC-mandated report filed by public companies to report unexpected events or transactions that are material in nature, and thus have an impact on the share prices of the company.

Financial Modeling

In investment valuation, financial modeling refers to the procedure and methodology performed to determine the value of an asset or financial security. Fundamentally, a business or company’s current value can be viewed as being derived from its future cash flow streams. An investor deciding whether to purchase or sell a stock, therefore, will be interested in estimating such value.

Earnings Report

The earnings reports released by companies can be invaluable in providing such information. Released by public companies on a quarterly and annual basis, they can be used to assess and gauge a company’s: financial condition, strategic plans, industry and competitive position, Key performance drivers and risk factors and Future performance.

Discounted Cash Flow

Discounted Cash Flow is a valuation technique or model that discounts the future cash flows of a business, entity, or asset for the purposes of determining its value. One aspect of investment decision-making entails discovering the fair value of investments.

Debt Snowball Method

The Debt-Snowball Method is a debt-management strategy aimed at reducing a borrower’s obligations. Borrowers can use this method to slowly eliminate their debt by focusing on their smallest debt balance, followed by larger ones until all obligations are paid off.