what-qualifies-a-company-as-blue-chip?

What do IBM, Walmart, JPMorgan Chase, and DuPont Chemical have in common? Although they are in different sectors, they are all known as blue chip companies. Blue chip companies are the mature firms that represent the stalwarts of an industry. These stable, profitable, and long-lasting companies are relatively safe investments.Continue Reading

when-should-a-company-use-last-in,-first-out-(lifo)?

Last in, first out (LIFO) is a method used to account for how inventory has been sold that records the most recently produced items as sold first. This method is banned under the International Financial Reporting Standards (IFRS), the accounting rules followed in the European Union (EU), Japan, Russia, Canada,Continue Reading

should-a-company-issue-debt-or-equity?

Businesses often need external money to maintain their operations and invest in future growth. There are two types of capital that can be raised: debt and equity. Debt Capital Debt financing is capital acquired through the borrowing of funds to be repaid at a later date. Common types of debt are loans andContinue Reading

how-m&a-can-affect-a-company

A corporate merger or acquisition can have a profound effect on a company’s growth prospects and long-term outlook. But while an acquisition can transform the acquiring company literally overnight, there is a significant degree of risk involved. In the sections below, we discuss why companies undertake M&A transactions, the reasonsContinue Reading

company-share-price-and-secondary-offering

When a public company increases the number of shares issued, or shares outstanding, through a secondary offering, it generally has a negative effect on a stock’s price and original investors’ sentiment. Going Public First, a company goes public with an initial public offering (IPO) of stock. For example, XYZ Inc. has a successful IPOContinue Reading