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Profit margins are perhaps one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is calculated at three levels on its income statement, starting with the most basic—gross profit—and building up to the most comprehensive: net profit. Between these two lies operating profit. All three have corresponding profit margins

What’s wrong with the American tax system? Depending on their perspectives, taxpayers complain about a wide range of features. However, a recent study by the Pew Research Center reveals that a majority express a concern that the system is unfair. They believe that it often requires low- and middle-income individuals to pay taxes on a

Semiconductor firms Nvidia (NVDA) and Advanced Micro Devices (AMD) reported new U.S. export restrictions would limit sales to China, sending shares of both companies and other semiconductor stocks tumbling on Thursday. While AMD claimed the new rules would not have a material impact on its business, Nvidia expects the change could mean a loss of

If you’re one of the millions of Americans who’ve been laid off or furloughed as a result of the coronavirus pandemic, your cash flow may have slowed to a trickle or stopped altogether. But the bills, of course, just keep on coming. It helps to have a plan to manage your finances until the crisis

Student loan borrowers have a variety of options when the time comes to start repaying their loans. Federal student loans offer the most flexibility, while the choices with private student loans are more limited. The best way for you to repay will depend on the kind of loans you have, how much you owe, and

The Biden administration nominated a team of “liberal and centrist economic advisers” to help him steer America’s recovery. Here are the administration’s top picks. Key Takeaways President Biden won the 2020 election and nominated former Federal Reserve Chair Janet Yellen to be his treasury secretary. Shalanda Young, current OMB acting director, has been nominated as

Dividends vs. Buybacks: An Overview Many companies reward their shareholders in two ways—by paying dividends or buying back shares. An increasing number of blue chips, or well-established companies, are doing both. Paying dividends and stock buybacks make a potent combination that can significantly boost shareholder returns. But which is better—stock buybacks or dividends? A dividend payment

As of late 2021, American students are on the hook for approximately $1.75 trillion in student loans, according to data compiled by the Education Data Initiative. 43.2 million student borrowers owe an average of $39,351, up significantly from past decades. With that much money on the line, it’s reasonable to be curious about who might

Identifying as nonbinary, genderqueer, agender, or bigender doesn’t disqualify a person from getting life insurance. Still, one must apply as either male or female because despite widening awareness that not everyone identifies as one gender or the other, the underwriting process hasn’t changed to keep pace. Key Takeaways Being nonbinary doesn’t disqualify an applicant from

Labor unions have a long history in the United States. While membership has been on the decline in recent decades, unions continue to play a major role in workers’ rights. Are labor unions effective? Proponents maintain that unions result in better wages, benefits and working conditions for workers. Critics argue, among other things, that unions

Labor unions are associations of workers formed to protect workers’ rights and advance their interests. Unions negotiate with employers through a process known as collective bargaining. The resulting union contract specifies workers’ pay, hours, benefits, and job health and safety policies. Thanks to the efforts of labor unions, workers have achieved higher wages, more reasonable

Amazon (AMZN) is one of the most valuable companies in the world, with a market capitalization exceeding one trillion dollars. One-way AMZN has continued to grow is by introducing new products and acquiring complementary businesses. One such product is Amazon Prime. This membership service gives subscribers certain perks like free two-day shipping of products, access

When real estate agents talk about staging your home, they’re referring to a method of preparing a property for sale on the real estate marketplace. Staging is designed to showcase a home’s best assets, impress buyers, and sell it quickly for the highest possible price. Because not all sellers stage their homes–especially homes in lower

We all know health insurance is something you shouldn’t live without, but what about vision insurance? You can purchase vision insurance as a group benefit through your employer or as an individual policy. But how does the cost compare to the coverage you’ll receive? Key Takeaway Most vision care plans provide discounts on laser eye-correction surgery. Vision

Student loan debt may be the biggest financial issue facing young adults today. Research shows that 55% of the class of 2020 who earned a bachelor’s degree also have student debt, owing an average of $28,400. As tuition and other costs continue to rise, having to borrow money to earn a degree is often unavoidable.

In a speech on Aug. 26, 2022, Federal Reserve Board Chair Jerome Powell stated: “The Federal Open Market Committee’s (FOMC) overarching focus right now is to bring inflation back down to our 2% goal.” He added: “Price stability … serves as the bedrock of our economy. Without price stability, the economy does not work for

Last week, President Biden announced that he will be forgiving up to $20,000 in federal student loans, no doubt providing some much needed relief for millions of eligible borrowers. Adding to the good news, the White House confirmed in a press release that this relief won’t be subject to the federal income tax. That said,

The Inflation Reduction Act (IRA) of 2022 is legislation that significantly impacts Americans in different ways. While the legislation aims to reduce the impact of inflation and address energy issues, it also includes provisions to lower prescription drug costs, especially for those on Medicare. Among its key provisions affecting drug costs, the Inflation Reduction Act

Developing clean energy sources is critical for the future of the United States and the rest of the world. However, creating the technology needed to make clean energy is expensive. The Department of Energy’s (DOE) Loan Programs Office (LPO) is a program that helps facilitate the development of new technology by offering loans and loan

Penny stocks have a well-deserved reputation for low quality, high risk, and intense volatility. However, by practicing due diligence, you can discover some hidden treasures in the most unexpected places. Below, you’ll find updates on previously discussed penny stocks from this column, followed by a few new intriguing and inexpensive trade ideas that are still