The Federal Funds Rate is the interest rate at which banks lend to each other overnight to meet their reserve requirements. Set by the Federal Reserve, it is one of the most critical tools in U.S. monetary policy, influencing liquidity in the banking...
During a recession, the stock market tends to experience a downturn, as investors become more risk-averse and sell off their stocks in anticipation of declining company profits. This can lead to a decrease in stock prices and overall market value....
The over-the-counter market is abbreviated as OTC. It refers to a decentralized market for unlisted securities that do not have a physical presence. It involves firms and persons participating in trading directly negotiating using a communication...
Apple is often considered a safe investment in the stock market due to its strong brand, consistent revenue growth, and diversified product ecosystem. As one of the largest and most valuable companies in the world, Apple has a massive global customer...
Dividends are distributed to shareholders as a portion of a company’s profits, providing a return on investment. Companies typically declare dividends after assessing profitability and cash reserves. The process begins with the board of directors...
A market order or a limit order can be placed. Rather than placing a market order, I usually place a limit order and wait for the price to come to me.
A securities analyst plays a crucial role in stock trading by researching and evaluating financial securities to provide investment recommendations. Their primary responsibility is to analyze companies, industries, and economic trends to assess the...
A closely held stock refers to shares of a company that are not widely traded in public markets and are typically owned by a small group of individuals. These owners are often involved in the management of the company, and they may include founders,...
Stocks, bonds, and mutual funds are all types of securities, but they differ in several key ways.