Trading Up-Close: Measures of Financial Strength

December 16, 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?

Looking to the Futures: Soybeans Fall as Harvest Continues

The November Soybeans contract (SX22) has fallen 1.28% to 1365.75 in Wednesday’s late morning trading as soybean harvest passes 22% completion.

Today's Options Market Update

Stocks subdued as yields and dollar continue to rise.

Weekly Trader's Outlook

Technically oversold conditions in the equity markets are reaching extremes.

Important Disclosures

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

Schwab does not recommend the use of technical analysis as a sole means of investment research.

Past performance is no guarantee of future result.

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