Best Broker to Buy Stocks: Tips for Selecting

[cramerjohn004]

There are two examples that I use the state of California and Nassau County, New York. The state of California is a biggest economic state in the United States and the state have the 8th largest GDP in the entire world. The state brings in enough revenues but their biggest problem is their high liabilities. The same goes for Nassau County NY, which is located in Long Island and home to some of the wealthiest people in the Unites States. Their problem just like California is that they spend too much money and have high debt levels. If you are an investor whether a retail or professional it is so important to look at their financial states and say to yourself can these issuers meet my obligations if I were to buy their bonds? Are they able to pay interest payments when they are due? These are very important question and buy simply looking at 富途 the balance sheet and income statement of these issuers you can make your own informed investment decision.

When looking at a balance sheet, to me the biggest item I look at is a total asset versus total liabilities. If the financial entity's asset to debt ratio is too low than that means the financial entity has less liquidity, questions as the whether they can pay their debt and are not able to have flexibility in the markets. What I mean buy that is if let's say a company like Microsoft wanted to buy Facebook but they were too leveraged with liabilities this would make it difficult to achieve. Using a current ratio of current assets over current liabilities is always helpful in indicating if the company has enough liquidity.