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What is a Hedge?

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 […]

Understanding Initial Public Offerings

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

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 […]

Understanding Sell-Offs

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 […]

What is a Pure Play?

A pure play refers to a stock for a publicly traded company that focuses primarily on one specific industry. It is more or less the opposite of a diversified business. For example, Netflix (NFLX) might be considered a pure play since it focuses on almost exclusively on producing and streaming entertainment content. In contrast, Amazon (AMZN) would not […]

Outperformance

A stock is said to outperform when it generates better returns than a particular index or the overall market. A company may outperform in relation to a major stock index, other companies in the same industry, or other companies with a similar level of market capitalization. A company can outperform by growing revenue and earnings faster […]

The Doji Candlestick

In a previous article, we covered the basics of candlestick charts. Today we look at a particular feature of candlestick charts known as a doji. The term comes from the original 16th century Japanese rice trading system on which candlestick charts are based.   A doji candlestick forms when the opening and closing prices of a stock […]

Trending Sideways

    A sideways trend refers to a period of time in which a stock’s price fluctuates in a relatively narrow range, moving horizontally rather than up or down. This horizontal movement usually occurs because supply and demand for the stock are nearly equal. Sideways movement happens during times of consolidation, when the price moves […]

Flash Freeze

  It’s that time of year when unusually cold weather can come out of nowhere. What better time to talk about the concept of flash freeze.   A flash freeze is an event in which trading on an exchange suddenly shuts down. One of the most famous flash freezes occurred on the NASDAQ on August […]

Understanding Stock Splits

A stock split (or forward stock split) occurs when a company decides to divide existing shares into multiple shares. The split can occur in many different ratios, but the most common are 2-for-1 and 3-for-1. During a forward split, the number of shares increases by a specified multiple, while the total price of the shares […]
Knowing others is intelligence; knowing yourself is true wisdom. - Lao Tzu
RT @elerianm: Here's the link to the just-published semi-annual #Fed "Monetary Policy Report" which discusses "the conduct of monetary poli…
RT @MorganStanley: Susan Reid, Global Head Of Diversity and Inclusion at Morgan Stanley, sits down with @TheGlasshammer to discuss her care…
RT @GoldmanSachs: Is #Bitcoin a (bursting) bubble? $GS Research on the market value of #cryptocurrencies: ... ...
You do not write your life with words, but with actions. What you think is not important. It is only important what you do. - Patrick Ness
RT @MorganStanley: After the market turbulence of early February, the bull versus bear tug of war continues. Bruno Paulson discusses: https…
RT @AB_insights: When a storm is brewing, you're only as secure as your shelter. Muni investors and their managers should identify tax-effi…
RT @DeutscheBank: Markets react to Yellen’s final #Fed minutes with confusion – 10-year US #bonds at 4-year high, but shares down slightly.…
There are three things all wise men fear: the sea in storm, a night with no moon, and the anger of a gentle man. - Patrick Rothfuss
RT @PIMCO: Unconstrained bond strategies offer a way for #investors to embrace volatility. ... #fixedincome ...