What is the Rule of 72

The Rule of 72 is a mathematical concept that is used in finance and investing as a quick way to estimate how long something takes to double in value. It works like this… “If you divide 72 by an interest rate or a rate of return, then the result tells you the approximate amount of […]

What does the Price to Earnings ratio mean

The Price to Earnings (PE) ratio is calculated by dividing the share price by the earnings per share value. This is one of the most important ratios you need to determine for any investment you make. A very high PE ratio implies that the market is expecting high growth from the company but it also […]

What are Earnings Per Share

Earnings Per Share (EPS) is one of the most important figures that you need to be aware of when selecting companies to invest in or even when analysing your current portfolio. It is calculated by taking the net profit of the company and dividing that figure by the total number of shares outstanding. As a […]

What is the W-8BEN tax form

A tax form for non-US residents holding US investments If you are not a resident or citizen of the United States and wish to hold US stocks then you will be required to complete a form that is issued by the Internal Revenue Service (IRS) of the United States. This form is called W-8BEN and […]