There seems to be a surge in interest surrounding pawn shops. On TV, two popular shows, Hardcore Pawn and the Pawn Stars reality shows expose a new business model to otherwise disinterested audiences.
But how can you start a pawn shop business to tap into the growth? We set out to answer this question.
How Pawn Shops Make Money
Pawn shops make money in two ways: Read more…
Cost of Goods Sold is a ratio-level financial indicator. The Cost of Goods Sold is used to determine how much of a company’s revenues are used to cover the basic costs of the products the company sells to customers.
Amazon had a COGS ratio of 77.45% of revenues in 2010. Thus, for every $1 in product Amazon sold to customers, the company had to spend 77.45 cents on the goods. The remaining amount could be used to pay for the operating expenses of the company.
After that item (usually known as SG&A) all amounts left over are pre-tax profits.
Why Cost of Goods Sold Matters
Active investing is a form of investment methodology where the investor takes an active stance in their individual investments.
Generally, active investors invest in the stock and bond markets, like most passive investors, but their investments are actively-managed. That is, active investors take a direct role in allocating their investment capital and finding new investment opportunities.
Active investing is most often contrasted to passive investing, or buy and hold investing strategies. A passive investor usually relies on market indices, such as the S&P500 index, to track the returns of the market. Due to lower expenses, passive investors get perhaps one of the best returns relative to their time investment.
Passive investors are more likely to favor routine monthly income investments, which provide regular cash flow back to investors.
Active Investing in the Stock Market
Investing, Mutual Funds
The Federal Reserve reports the M0 money supply, the amount of physical cash and reserves held at the Federal Reserve by member institutions.
Recently, the M0 money supply seems to be falling, indicative of big changes in the economy. Generally, the M0 money supply is held mostly constant. The “monetary base,” as it is known, changes mostly due to Fed involvement in driving down interest rates.
The Fed hasn’t been actively buying securities, nor is it reducing the amount of securities it holds from the open market.
Fed M0 Money Supply Figures
Here is a chart of the M0 money supply as most recently reported:
You’ll hear a lot about how asset managers are window dressing their portfolios ahead of the new year. Mutual funds, active exchange-traded funds, and other asset management companies will soon file their annual reports.
These annual reports go out to every single mutual fund investor. ETF investors can find the filings with the SEC.
In order to look like high-quality portfolio managers, Wall Street likes to “window dress” its portfolios to make performance look better than it really is.
How Window Dressing Works
A Facebook IPO is in the works.
As the company prepares to go public it’s boosting its operations to prepare for life as a public company.
According to Forbes, the company is beefing up staff in its advertising departments in New York, presumably to lock in more valuable advertising contracts (and earnings) before a big IPO on Wall Street.
Facebook 2011 Earnings Read more…