Explainers

Covering everything from basic terms to advanced investing concepts. Explainers that make every concept easy to follow. Part of our free investment articles.

What Are Share Buybacks: How Companies Return Cash

A share buyback is a company spending its own cash to buy its own stock. The math looks simple, but the consequences for earnings per share, valuation, and long-term shareholder value are anything but. Learn how buybacks work, why companies use them, and when they backfire.

Marketgenius2 days ago

What Is the Dividend Discount Model: DDM Explained

The dividend discount model values a stock by adding up every future dividend a company will pay, discounted back to today. Learn how DDM works, the Gordon Growth shortcut, multi-stage variants, and the input sensitivity that makes it dangerous in the wrong hands.

Marketgenius2 days ago

What Does It Mean When Insiders Are Buying Shares

When corporate insiders spend their own cash on their own stock, they are making a statement. Learn which buys count, which ones are noise, and how to read the context that turns a single filing into a real signal.

Marketgenius3 days ago

DCF Valuation: How to Find the Fair Value of a Stock

A discounted cash flow model turns a business into a stream of future cash flows and shrinks them back to today. Learn the three inputs that drive every DCF, walk through a worked example, and see why small changes in the discount rate can rewrite the answer.

Marketgenius4 days ago

How to Invest in Stocks With Little Money

Fractional shares and $25 monthly deposits can beat waiting a year to save $300. Learn how to turn a small budget into a working stock portfolio with ETFs, dollar-cost averaging, and the habit that makes compounding actually work.

Marketgenius5 days ago

What Makes a Stock Price Go Up or Down

Stock prices move when buyers and sellers disagree on what a share is worth. Earnings, interest rates, news, and sentiment shift that balance every second. Learn how each driver feeds the order book, why prices fluctuate even on quiet days, and how long-term value relates to short-term price.

Marketgenius5 days ago

Negative Free Cash Flow: Red Flag or Growth Signal

Negative free cash flow means a company spends more cash than it generates. That can signal aggressive growth investment or a business in trouble. Learn the formula, the difference between levered and unlevered FCF, and how to tell good negative cash flow from bad.

Marketgenius7 days ago

How Many Stocks Should You Own in a Portfolio

Academics recommend 20-30 stocks for diversification. Buffett and Munger say 3-6 is enough if you know what you own. The right number depends on your experience, time, and how deeply you research each position. Learn where the sweet spot is and why more stocks can mean worse returns.

Marketgenius8 days ago

How Often Do Stocks Pay Dividends

Most stocks pay dividends quarterly, but schedules vary by company and region. Some pay monthly, others semi-annually or once a year. Learn how payment timing works, what ex-dividend dates mean, and why profitable companies like Amazon and Berkshire choose not to pay dividends at all.

Marketgenius8 days ago

Reverse DCF: Find the Growth the Market Expects

A reverse DCF starts with the stock price and works backward to find the growth rate investors are pricing in. Learn how it works, when to use it, and how to spot stocks where the market expects too much or too little.

Marketgenius11 days ago

Dividend Growth Rate: What It Is and How to Calculate It

Dividend growth rate measures how fast a company raises its dividend payout each year. Learn how to calculate it, what a good rate looks like, and why long-term investors often care more about growth rate than starting yield.

MarketgeniusMar 5, 2026

WKN Number: Germany's 6-Digit Code for Identifying Securities

Discover how WKN numbers uniquely identify German securities, prevent trading errors, and work behind every transaction. Learn the 6-character structure and how WKN relates to ISIN.

MarketgeniusFeb 25, 2026

CUSIP Number Explained: The 9-Digit Code Behind US & Canada Securities

Discover how CUSIP numbers uniquely identify North American securities, prevent trading errors, and work behind every transaction. Learn the 9-digit structure, check digit validation, and how CUSIP relates to ISIN and SEDOL codes.

MarketgeniusFeb 19, 2026

Securities Identifier Codes: Key Codes Behind Every Trade

Every security traded worldwide carries one or more identifier codes that ensure absolute precision in trading and settlement. Learn how national and global securities identifiers work, when each applies, and how they relate to one another.

MarketgeniusFeb 19, 2026

ISIN Code Explained: The Global Standard for Cross-Border Trading

Discover how ISIN codes unify global securities markets, enable cross-border trading, and provide universal identification across exchanges. Learn the structure, check digit validation, and how ISIN relates to national identifiers like CUSIP and SEDOL.

MarketgeniusFeb 15, 2026

SEDOL Code: The UK Stock Identifier Working Behind Every Trade

Discover how SEDOL codes uniquely identify UK and Irish securities, prevent trading errors, and work behind the scenes in every transaction. Learn the format, check digit validation, and how SEDOL relates to ISIN and CUSIP codes.

MarketgeniusFeb 12, 2026

P/E Ratio: The expensive truth about cheap stocks

Discover how P/E ratios reveal hidden value in stocks that look expensive. Learn why a high P/E stock can actually deliver better long-term returns than a low P/E 'bargain' with real examples.

MarketgeniusFeb 10, 2026

Stock Fundamentals: Key Metrics to Analyze Any Stock

Understanding stock fundamentals starts with mastering the key metrics professional investors use to analyze stocks. Learn valuation ratios, profitability indicators, and market context with clear explanations and practical applications.

MarketgeniusFeb 10, 2026

Market Cap: Sometimes size does matter

Discover how market capitalization reveals company size and risk level. Learn why a $5 stock can be worth more than a $500 stock with clear examples and simple formulas

MarketgeniusDec 27, 2025

Founder vs Professional Management: How leadership impacts returns

Understand how management structure shapes growth, risk, and returns. See why founder-led firms often outperform and what it means for your investment strategy.

MarketgeniusDec 22, 2025

Price to Sales (P/S): Spot growth before everyone else

Discover how to identify the next big winners early using P/S ratios. Find fast-growing companies before everyone else catches on and drives up prices.

MarketgeniusNov 23, 2025

Profit Margin: The key to measuring true business profitability

Learn how profit efficiency separates winning investments from revenue traps. See why profit margin matters more than revenue growth and spot truly profitable companies.

MarketgeniusNov 4, 2025

Earnings per Share (EPS): The Key Metric That Beats Headline Profits

Understand how share count can make or break your investment returns. See why EPS matters more than headline profits and how to spot truly profitable stocks.

MarketgeniusOct 9, 2025

Cyclical Stocks Think Backwards: Why counter-intuitive timing wins

Understand how economic cycles can make or break your investment returns. See why cyclical stocks require backwards thinking and when bad earnings signal good opportunities.

MarketgeniusOct 6, 2025

PEG Ratio: The growth hunter's best friend

Discover how PEG ratio reveals hidden bargains in growing stocks and can help you find better buying opportunities. With understandable examples showing why P/E alone isn't enough.

MarketgeniusSep 23, 2025