Portfolio rebalancing is the process of adjusting the allocation of assets in an investment portfolio to maintain a desired level of risk and return. Over time, market movements can cause certain assets, like stocks or bonds, to grow or shrink...
The price-to-book (P/B) ratio is a crucial metric for identifying undervalued stocks, especially in value investing. This ratio compares a company's market value to its book value, providing insights into how much investors are willing to pay for...
Dividends are a crucial aspect of investing, representing a portion of a company's earnings distributed to its shareholders. They serve as a primary incentive for investors, providing a steady stream of income and demonstrating a company's financial...
Penny stocks are known for their volatility, so having a clear exit strategy is crucial for protecting profits and limiting losses. One of the most effective methods is setting price targets before entering a trade. Investors should decide in advance...
Dividends offer several advantages to investors, making them an attractive component of a diversified investment portfolio. One of the primary benefits is the regular income stream they provide. Unlike capital gains, which require the selling of...
By investing in the grey market, you are betting on a company's potential market cap ahead of its initial public offering (IPO). The price of a grey market forecasts the company's total market capitalisation at the end of its first trading day.
Trading during the Asian session can present unique opportunities and challenges. Here are some key considerations and strategies for trading in the Asian session:
Stock prices rise or fall based on the balance between supply and demand in the market. When more investors want to buy a stock than sell it, the price goes up. When more people want to sell than buy, the price drops. This balance is influenced by...
The terms “shares” and “stocks” are often used interchangeably, but they have subtle differences in meaning. Both represent ownership in a company, yet they describe this ownership from slightly different perspectives.
At-the-money (ATM) option is one in which the strike price reflects the current market value of the underlying asset. Essentially, it describes how an option's strike price and the underlying asset's market price are related. Both a call option and a...