# Finance basics

Any firm house built, started by laying sound foundations. Therefore, we have selected some ‘finance basics’ that anyone with a strong interest in finance should master before moving on to more complex topics.

We start by covering interest rate compounding. Next, we turn to discounting cash flows, which is very important in valuation topics we treat in other parts of the website. We also discuss some basic statistics and explain various ways for return calculation. Moving on, we explain the basics on credit ratings and their importance in financial markets.

Finally, we discuss various types of securities commonly traded on financial markets. In particular, we discuss bonds, shares, derivatives and hybrid securities.