Kinviout

Dec 25, 2024 12:13

What are moving penny stocks?

Moving penny stocks refer to stocks that trade for less than $1 and are often considered to be high-risk investments due to their low liquidity, volatility, and limited financial disclosures. They are usually associated with small, unestablished...

Castro

Dec 25, 2024 10:04

What is cumulative preferred stock, and how does it benefit investors?

Cumulative preferred stock is preferred equity that guarantees investors the right to receive any missed dividend payments before common stockholders receive their dividends. This feature protects investors in cases where the issuing company faces...

Castro

Dec 25, 2024 10:01

Example of overexposure

Assume you have a $100,000 trading portfolio and decide to invest in commodities and forex, investing 25% in copper, 25% in gold, and 50% in GBP/USD.

Mook1939

Dec 25, 2024 03:13

What are the dealer markets?

Dealer markets are financial markets where securities transactions are executed through dealers rather than directly between buyers and sellers. In these markets, dealers act as market makers, holding inventories of securities and quoting buy (bid)...

Stevenson

Dec 24, 2024 13:41

How does a share buyback impact a company's stock price?

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...

JohnFox

Dec 24, 2024 10:03

What is option income fund?

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...

Indes1971

Dec 24, 2024 03:16

What are the benefits and drawbacks of trading on an alternative trading system (ATS)?

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.

Frompeat1940

Dec 23, 2024 12:20

What is the impact of market makers on price discovery?

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...

Ressibing

Dec 23, 2024 08:26

What is the difference between long-term and short-term capital gain?

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...

Curaidondial50

Dec 20, 2024 13:42

Example of maintenance margin

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...