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...
Floating rate bonds, also known as variable rate bonds, are debt securities with interest payments that adjust periodically based on a benchmark rate. Unlike fixed-rate bonds, where the coupon remains constant, floating-rate bonds have interest...
Basis points are used to describe yields and interest rates but describe changes in the value of an asset, such as percentage changes in stock prices. The following are some common examples.
The Federal Reserve, commonly referred to as the "Fed," is the central bank of the United States. Its primary role is to promote a stable and healthy economy by implementing monetary policy, supervising and regulating banks and other financial...