Company accounting

Some knowledge of accounting is crucial for profitable investing.

Ultimately, a company's earnings or profits often drive its stock price. Profits are the amount left over after the company has paid all its expenses.

Remember that a company's earnings can be affected by one-off gains or losses. That means it is important to look at trends over a long periods to assess the company's underlying profitability.

Company reports and brokers' reports are good sources of accounting information. If you have a BrokerLine account, you can access a range of company information from this site. Just log in to your account and choose News and Research.

When choosing what to invest in, you might also want to consider the profits and profitability and cashflow.