In the article, we will explore how these ratios can help investors value stocks, and assess a company's financial health, profitability, and efficiency.

Formula for Return on Asset (ROA) = Net Income / Total Assets 

A business expands by making investments that are expected to increase revenue and profits. It obtains the capital or funds required to make such investments through borrowing (debt financing) or by using funds provided by the owners (equity financing)

In general, REITs specialize in a specific real estate sector. However, diversified and specialty REITs may hold different types of properties in their portfolios, such as a REIT that consists of both office and retail properties. 

Let's understand Alternative Investments with examples.

A futures contract can be "bought" or "sold" but no money exchanges hands upfront, except from depositing initial margin to lower the risk of non-payment. 

Dividend Yield = Annual dividend paid per share / Current price per share

Stocks with a small free float are rarely invested in by institutional investors because they are more volatile than stocks with a large float. 

These could be constructed as a broad-based index that captures the entire market, such as a small-cap index, mid-cap index, large-cap index, etc.

Trading is undoubtedly one of the most lucrative careers for today’s generation. It guarantees you to become your own boss and lets you have a hassle-free life.