Monthly Archives: February 2018

A hedge is an investment made to offset the risk of negative price movement in another asset. A hedge can be thought of as a kind of insurance policy that prevents a person from losing too much money when a particular asset plummets in price. For instance, a person investing in a luxury goods stock […]

An initial public offering (IPO) occurs when a private company makes stock available to the public for the first time. An IPO may be issued by a smaller, newer company looking for capital to expand, but can also be initiated by larger private companies that wish to become publicly traded. The company is referred to as […]

Inventory turnover can be a useful tool in evaluating retail-based businesses. It is expressed as an efficiency ratio that indicates how often a company’s inventory is sold and replaced over a given period of time. It can be calculated one of two ways: either by dividing market value of sales by ending inventory, or by […]

A sell-off refers to a rapid selling of any type of security, including stocks, bonds and commodities. As more investors sell, supply increases, causing a drop in the security’s value. A sell-off might be triggered by a specific event such as a poor earnings report or corporate scandal. A sell-off in the broader market often occurs […]