There are reasons which make credit card interest rates so high. High credit card interest rates make having this kind of debt a bad idea especially if it compounds very quickly after we bought things that quickly lose their value.
This video highlights what is spoken about when we talk about the capital structure of a company - effectively the structure of that company's financing, which is very tied to the right side of that company's balance sheet - for the book values, as well as the market values of the items on the right side of the balance sheet.
Equity - or public equity in the form of stocks is issued by companies. Not only companies can borrow - and not only companies can borrow through securitised debt.
The Balance Sheet is one of the 3 main financial statements for companies, and it captures the assets, the equity and the debt at a certain point in time - like the end of the year. And it balances.
Companies are often valued on earnings or multiples of earnings - for example the P/E ratio. One year of earnings might not tell you that much however because earnings can be volatile - especially if revenues/sales change.
Everyone should know what a stock and a bond are - this video gives a quick intro to that. What stocks and bonds are has a lot to do with how providers of capital interact with users of capital (through equity (which includes stocks for many large companies) and debt (which includes bonds for many large users of capital).
Saving and investing is incentivised in most western countries through tax benefits. Governments want to collect taxes to provide the services that they provide - but they also provide tax benefits for saving and investing because it is considered beneficial for individuals and society as a whole.
A number of the valuation methods refer to discounting - discounting cash flows - discounting dividends. This video looks at what discounting is - and how to some extent it is the inverse of compounding.
An introduction to what has been called the 8th wonder of the world - compounding. The principle that allows small sums to grow to large sums over time.
An introductory summary of hedge funds. There is a lot more on this in the book because it is easier to convey in a written format than on tape - also at more info at savingandinvesting.c om.
