A wash sale is a practice in which an investor sells a security or investment asset at a loss and then immediately repurchases the same or a substantially identical asset. The purpose of a wash sale is to create a tax deduction for the loss without...
Stock market regulations are rules and frameworks designed to ensure fairness, transparency, and stability in financial markets. These regulations protect investors from fraud, insider trading, and market manipulation, while also maintaining...
A stock market graph is a visual representation of a stock’s price movement over a specific period of time. It helps traders, investors, and analysts quickly understand how a stock has performed and where it might be headed. The graph usually plots...
Capital assets are long-term investments held by a company or individual with the expectation of generating income or appreciation over time. These assets are typically acquired with the intention of holding them for a year or more. Capital assets...
T+2 settlement is the standard system used in most global financial markets for completing securities transactions. The term “T+2” stands for “trade date plus two business days.” It means that when an investor buys or sells a security, such...
Investing in small-cap stocks can offer significant growth potential, but it also comes with certain risks that investors should carefully consider before allocating funds. Small-cap stocks refer to the shares of companies with relatively low market...
Emerging market stock exchanges differ from developed ones in several key ways, mainly in terms of size, liquidity, regulation, and investor participation. Developed markets like the New York Stock Exchange or the London Stock Exchange have deep...
A stockbroker is a licensed financial professional who buys and sells stocks and other securities on behalf of clients. They act as intermediaries between buyers and sellers, executing trades on stock exchanges and other markets. Stockbrokers can...
The principle of price discovery in stock markets refers to the process through which the fair market price of a security is determined based on supply and demand. It reflects how buyers and sellers interact in the market, expressing their...
A person or company that is insolvent has more liabilities than assets. He is unable to fulfill his obligations, such as paying debts on time (before maturity). An insolvent person or business entity cannot pay off its debts to all creditors.