Trading Up-Close: Measures of Financial Strength

December 15, 2019
On this episode of Trading: Up-Close, Joe Mazzola takes a look at three key measures of financial strength you can look at before buying stock in a company.

Before buying stock in a company, you want to make sure it has the financial strength to stay in business for the long-term. A company that can turn a profit, has the cash to pay for its operations and isn't deeply in debt is usually a better investment than a company that's struggling.

To understand a company's financial health, you can start with three measures: profitability, liquidity and solvency.

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What is it like to trade with Schwab?

Today's Options Market Update

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