Most investors, when they have a hunch that the price of a given stock is going to move up or down, will buy or sell short the company’s shares in an effort to benefit from the move that they anticipate. Call or put options allow investors to use leverage and attempt to make a greater [...]
We have to accept this fact that financial terms are not a part of our daily vocabulary, therefore learning their meaning is necessary before investing because paying the cost of misunderstanding can be costly. This rule of thumb applies to all terms in finance, but this time we are going to talk about ex dividend [...]
Margin, investor’s siren song, is often hard to resist. The temptation of leverage to see huge returns, portfolios rocketing into the millions, it is the fantasy. So what keeps us from throwing caution to the wind, trusting our instincts and research, and leveraging to our eyeballs for big wins? The margin call.
When you buy stocks [...]
Exchange Traded Funds (ETF’s) as the name implies are a sort of fund that is traded on the stock market. Like Mutual Funds they are a grouping of stocks or bonds that try to track the overall return of the combined investment. Unlike mutual funds however they are traded over a stock market such as [...]