Monthly Archives: October 2017

Yield curves are used to plot the interest rates of different bonds at a particular point in time. In order for bonds to be compared using a yield curve, the must have equal credit quality (or bond ratings), but different maturity dates. The X-axis corresponds to the maturity dates, while the Y-axis corresponds to the […]

  In a previous blog, we discussed strategies of asset allocation. One important way to maintain a proper allocation of assets is through the tool of rebalancing.   Rebalancing is the practice of buying or selling assets in order to maintain a particular proportion of asset allocation in a portfolio. For instance, let’s say I want […]

A candlestick chart is a useful tool for understanding a stock’s behavior in the marketplace, and is often used to gauge investor sentiment. Each “candlestick” in the chart represents stock behavior for a particular day. The “body” of the candlestick is the space between the opening and closing price of the stock for that day. If […]

  Short selling refers to the selling of shares not owned by the seller, but are instead usually borrowed. Short selling occurs because an investor believes that the price of a stock will decline, essentially “betting against” a company. This makes short selling an inherently risky practice. Short selling usually begins with a trader borrowing shares […]