Lets start with the fundamentals. All basic securities can

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Lets start with the fundamentals. All basic securities can be summed up in what is known as the Fundamental Equation of Accounting: Assets – Liabilities = Equity. Lets walk through each piece of this equation to understand it more thoroughly.
First, we have assets. Basically, an asset is anything that has real economic value.

There are two major types of assets: tangible assets, which are assets that you can touch and feel, like real estate or inventory.

There are also intangible assets, like the brand name of a company, like Coca Cola. Coca Cola’s brand name is recognizable, it helps bring in customers and revenues. When you buy a can of coke, you know what you’re getting.

You can expect a certain level of quality, and you’re willing to pay for that. The brand recognition has value, and therefore, the brand is an asset.
Next, we have liabilities. Liabilities are debts owed to creditors. One example of a debt is a purchase made on credit. Lets say I run a car manufacturer, and I’ve just agreed to purchase 1,000 tons of steel. But I didn’t pay for the steel in cash; instead, I bought it on credit. This credit is now a liability.

But the biggest corporate liability is debt in the form of bonds. Companies issue bonds to finance the growth and development of new assets. These bonds are liabilities of the company.

* Forex Trading Online Blogroll

1. http://affiliateinternetstudy.blogspot.com/2009/08/forex-trading-online-forex-trading.html
2. http://loubri.wordpress.com/2009/08/31/trade-forex-forex-trading-online-trader/
3. http://forexmonster.ning.com/profiles/blogs/forex-trading-tutorial-forex
4. http://james1972.vox.com/library/post/forex-trading-currency-forex-trading-fap-turbo.html

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