A bear market is characterized by a sustained decline in the prices of securities, typically stocks, over an extended period, usually defined as a 20% or greater drop from recent highs. Recognizing the signs of a bear market is crucial for investors...
Active/Passive Flexibility: Mutual funds and exchange-traded funds can both use active or passive investing strategies. Although index-based mutual funds are available, the mutual fund industry is best known for active management. ETFs are almost...
A discretionary order in the financial markets differs from other types of orders in that it grants traders a certain degree of flexibility and discretion in executing the trade. Unlike more rigid order types with fixed prices or conditions, a...
Growth stocks are those that are expected to grow faster than the market as a whole. As a result, "growth companies" are in the early stages of their business cycle and are expected to grow revenue faster than the market average. Investors typically...
The value of tangible assets can be affected by various factors, including supply and demand, market conditions, and the quality and condition of the asset. In some cases, the scarcity of certain tangible assets can drive up their value, while a...
An Exchange-Traded Note (ETN) is a financial instrument that combines characteristics of both bonds and exchange-traded funds (ETFs). Issued as debt securities, ETNs are unsecured, unsubordinated debt notes typically issued by financial institutions,...
Short selling can be a valuable tool for investors looking to profit from market downturns or to hedge against potential losses in their long positions. Here are some of the advantages of short selling:
Return on Capital Employed (ROCE) is a measure of a company's profitability and efficiency in using its capital. It is calculated by dividing the company's operating profit by its capital employed. The formula is:
To find breakout stocks, you must first identify a market with a clearly defined region of support or resistance. It has previously been demonstrated that the more times a stock bounces off of this level, the better. A market consolidates when it...
A stock index serves as a statistical measure reflecting the performance of a specific group of stocks, providing investors and analysts with a comprehensive snapshot of the overall market or a particular sector. The construction and tracking of a...