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...
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...
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.
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)...
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...