Introduction to stocks

Many people own stocks, but, unfortunately, most of them don't really understand what they own. This tutorial will keep you from being one of those people (not keep you from owning stock, but keep you from being ignorant about your investments).
What it means to buy a company's stock
What it means to buy a company's stock
Bonds vs. stocks
The difference between a bond and a stock.

Shorting stock

Can you sell something that you borrowed from someone else? Why, yes, you can and it is called "shorting". Why would you do this? Well, you can now make money if the price goes down. Is this bad? This tutorial has your answers.
Basic shorting
Basic Shorting
Shorting stock
What does it mean to short a stock?
Shorting stock 2
More on the mechanics of shorting stock.
Is short selling bad?
A discussion of the virtues and/or vices of short selling.

Understanding company statements and capital structure

If you understand what a stock is (also a good idea to look at the topic on accounting and financial statements), then you're ready to dig in a bit on a company's actual financials. This tutorial does this to help you understand what the price of a company really is.
Gross and operating profit
Difference between gross profit, operating profit, and net income.
Basic capital structure differences
Understanding basic capital structure differences
Market capitalization
Market versus book value of equity
Market value of assets
Market value of assets.


When companies issue new shares, many people consider this a share "dilution"--implying that the value of each share has been "watered down" a bit. This tutorial walks through the mechanics and why--assuming management isn't doing something stupid--the shares might not be diluted at all.
Stock dilution
Why the value per share does not really get diluted when more shares are issued in a secondary offering

Mergers and acquisitions

Companies often buy or merge with other companies using shares (which is sometimes less intuitive than when they use cash). This tutorial walks through the mechanics of how this happens and details what is likely to happen in the public markets because of the transaction (including opportunities for arbitrage).
Acquisitions with shares
Mechanics of a share-based acquisition
Price behavior after announced acquisition
Stock Price Behavior After Announced Acquisition with Shares
Simple merger arbitrage with share acquisition
Showing how a merger arbitrage player might act if they were sure that a transaction would go through

Leveraged buy-outs

Private equity firms often borrow money (use leverage) to buy companies. This tutorial explains how they do it and pay the debt.
Basic leveraged buyout (LBO)
The mechanics of a simple leveraged buy-out

Corporate bankruptcy

Anybody or anything (you can decide if a corporation is a person) can have trouble paying its debts. This tutorial walks through what happens to a corporation in these circumstances.
Chapter 7: Bankruptcy liquidation
Introduction to bankruptcy liquidation (Chapter 7)
Chapter 11: Bankruptcy restructuring
Chapter 11: Restructuring through a bankruptcy