If you are a prudent stock market investor, then you will not invest in a stock without understanding its company's financials.

Many average Americans, including small business owners, are waiting and wondering what kind of an effect the financial bailout plan will have on them. As a matter of fact, most are unsure what the bailout actually means. Obviously, they are struggling through this economic crisis just like everyone else. All they want to know is what all of this means to the future of their business.

These ratios measure how skillful a company is at generating profits.

There are three broadly used liquidity ratios: (i) working capital; (ii) current ratio; and (iii) quick (acid) ratio.

Angel investors are individuals who invest in emerging business ventures. Angels typically provide both capital and know-how to companies who are in either their start-up or expansion phases. To reflect the increased risk of investing in such firms, angels seek a higher rate of return versus traditional public stock investments.