A share buyback, also known as a stock repurchase, can significantly impact a company's stock price in various ways. Primarily, a buyback reduces the number of outstanding shares in the market. With fewer shares available, the earnings per share...
An Option Income Fund is a specialized investment vehicle designed to generate consistent returns through the strategic use of options contracts. These funds are typically managed by professional portfolio managers and aim to provide investors with a...
Alternative Trading Systems (ATS) are non-traditional platforms that facilitate the buying and selling of securities outside of formal stock exchanges. They offer several benefits but also come with certain drawbacks.
Market makers play a crucial role in price discovery in financial markets. By providing liquidity and maintaining a constant bid-ask spread, they help ensure that buyers and sellers can execute trades efficiently and at fair prices. The presence of...
Capital gains are profits realized from the sale of assets such as stocks, real estate, and other investments. The distinction between long-term and short-term capital gains is based on the holding period of the asset. Long-term capital gains are...
Maintenance margin refers to the minimum amount of equity that an investor must maintain in their margin account to avoid a margin call from their broker. The maintenance margin is typically set by the broker and is expressed as a percentage of the...
An uptick refers to a positive movement or increase in the value of a financial instrument, such as a stock, bond, or commodity, over a short period of time. It is a term commonly used in financial markets to describe the upward movement of prices....
Dividend payments play a significant role in generating passive income for investors by providing regular cash flow without the need to sell shares. Dividends are a portion of a company’s earnings distributed to shareholders, often every quarter,...
Traders, brokers, and market makers are all important players on the trading floor, each with their own unique roles and responsibilities. Traders are responsible for buying and selling financial instruments on behalf of their clients or their firms,...
Active management in stock trading refers to an investment strategy where the portfolio manager or trader actively makes decisions to buy, sell, or hold stocks in an attempt to outperform the overall market or a specific benchmark index. Unlike...