Algorithmic trading, often referred to as algo trading or automated trading, has significantly transformed the landscape of stock markets. This method involves the use of computer algorithms to execute trading strategies with speed and precision,...
Penny stocks can play a role in a diversified investment portfolio, albeit a limited and potentially risky one. Including penny stocks can add a speculative element to a portfolio, potentially offering higher returns compared to more stable...
Mid-cap stocks offer growth potential, but they also come with several disadvantages that investors should consider. One major drawback is higher volatility compared to large-cap stocks. Mid-cap companies are still expanding and may not have the...
A forward transaction involves a deferred performance of obligations between two parties. The terms of execution and the date of termination are clearly spelled out in a "layout". Legal transactions, insurance transactions, and financial transactions...
Listing a company on a stock exchange can be time consuming and costly. And, once the company has gone public, it will have to consider its obligations to its shareholders, who now own a stake in the company.
Jeff Bezos founded Amazon.com Inc. (AMZN) as an online bookstore in July 1994 and has since evolved into the world's largest e-commerce company. Amazon offers a wide variety of products, including video games, software, electronics, clothing, toys,...
A stock exchange is an organized marketplace where securities such as shares, bonds, and exchange-traded funds are bought and sold. One of its primary features is liquidity, which enables investors to buy or sell securities quickly at market prices....
Continuous learning is essential in stock market analysis because financial markets are constantly evolving. Economic conditions, government policies, global events, and technological innovations regularly reshape how markets behave. An investor who...
A trend line is a fundamental tool in technical analysis used to identify and visualize the direction of a stock’s price movement. It is a straight line drawn on a chart that connects at least two or more price points, typically the highs or lows,...
During times of market uncertainty, investors often turn to defensive stocks as a strategy to protect their portfolios and mitigate potential risks. There are several reasons why defensive stocks become attractive in such situations.