invest
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2010 Flash Crash: Causes, Impact, and Lessons Learned
The 2010 Flash Crash is the market crash that occurred on May 6, 2010. During the 2010 crash, leading US stock indices, including the Dow Jones Industrial AverageDow Jones Industrial Average (DJIA)The
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Understanding Hedge Fund Fees: The 2 and 20 Structure
The 2 and 20 is a hedge fund compensation structure consisting of a management fee and a performance fee. 2% represents a management fee which is applied to the total assets under management. A 20% pe
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Understanding the 10-Year US Treasury Note: Definition & Key Features
The 10-year US Treasury Note is a debt obligation that is issued by the Treasury Department of the United States Government and comes with a maturity of 10 years. It pays interest to the holder every
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Forfeited Shares: Understanding Share Forfeiture and Consequences
What Is a Forfeited Share? A forfeited share is a share in a publicly-traded company that the owner loses (or forfeits) by neglecting to live up to any number of purchase requirements. For exam
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Financial Instruments: Definition, Types & Importance
What Is a Financial Instrument? Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments prov
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Understanding Financial Crises: Causes, Effects, and Prevention
What Is a Financial Crisis? In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts, and financial institutions experi
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Direct Stock Purchase Plans (DSPPs): A Comprehensive Guide
What Is a Direct Stock Purchase Plan (DSPP)? A direct stock purchase plan (DSPP) is a program that enables individual investors to purchase a companys stock directly from that company without t
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Understanding Stock Delisting: Causes & Implications
What Is Delisting? Delisting is the removal of a listed security from a stock exchange. The delisting of a security can be voluntary or involuntary and usually results when a company cease
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Understanding Bid Price: Definition & Significance
What Is a Bid Price? A bid price is a price for which somebody is willing to buy something, whether it be a security, asset, commodity, service, or contract. It is colloquially known as a “bid”
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Market Capitalization vs. Market Value: Understanding the Key Differences
Market Capitalization vs. Market Value: An Overview In many areas of the financial sector, including economics, accounting, and investing, accurately assessing the value of a company can be of
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Investing vs. Speculation: Understanding the Key Differences
Investing vs. Speculating: An Overview Investors and traders take on calculated risk as they attempt to profit from transactions they make in the markets. The level of risk undertaken in the tr
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Navigating Bear Markets: Investment Strategies for Volatility
A bear market is traditionally defined as a period of negative returns in the broader market where stock prices fall 20% or more from recent highs. Several strategies can be used when investors beli
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Internal Rate of Return (IRR) Calculation with Excel: A Comprehensive Guide
The internal rate of return (IRR) is the discount rate providing a net value of zero for a future series of cash flows. The IRR and net present value (NPV) are used when selecting investments based
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Stock Rights & Warrants: A Guide for Investors
Companies that need to raise additional capital can do so by issuing additional shares of stock. However, these additional shares will dilute the value of existing shares, which can be a concern for
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Money Market vs. Capital Market: Key Differences Explained
Money Market Vs. Capital Market: An Overview The money market and the capital market are not single institutions but two broad components of the global financial system. The money market is
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Buy-Side vs. Sell-Side Analysts: Understanding the Key Differences
Buy-Side vs. Sell-Side Analysts: An Overview Much has been made of the Wall Street analyst, as though it were a uniform job description. In reality, there are significant differences between se
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Billions Season 5: A Deep Dive into Finance, Power & Intrigue
"Billions" is coming back! The hit series from CBS's Showtime network returns for season 5 on Sept. 5, 2021, and the intrigue is intoxicating. The show, which debuted in 2016 as the brai
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Operating Leverage: Understanding Its Impact on Business Performance
Return on equity, free cash flow (FCF) and price-to-earnings ratios are a few of the common methods used for gauging a companys well-being and risk level for investors. One measure that doesnt get e
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Understanding Level 2 Assets: Valuation and Characteristics
What Is a Level 2 Asset? Level 2 assets are financial assets and liabilities that are difficult to value. Although a fair value can be determined based on other data values or market prices, th
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Securitization Explained: Transforming Assets into Securities
Securitization is the process of taking an illiquid asset or group of assets and, through financial engineering, transforming it (or them) into a security. The derisive phrase securitization food ch
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- Live-In House Flipping: A Profitable Real Estate Strategy?
- Municipal Bonds: A Comprehensive Guide for Investors
- Diversified Investments: Protect Your Portfolio & Maximize Returns
- Alternative Investments: Definition, Types & Risks - A Comprehensive Guide
- Understanding Asset Classes: A Guide for Investors
- Value Traps: Identifying & Avoiding Investment Pitfalls
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Poly Network Hacked: $610M Cryptocurrency Theft – Details & Recovery EffortsBlockchain platform Poly Network has fallen victim to what is likely to be the largest cryptocurrency heist in history, with hackers making away with over $610 million (£440 million) worth of Ether, B...
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Long-Term Thinking: Strategies for Achieving Lasting SuccessThere are many ways you can achieve your goals. No matter what road you take, you probably have to work hard at it. So here’s something to think about: Why do we often pick the shortest route?We ...
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FFO Explained: Understanding Funds From Operations for Real Estate InvestorsFunds from operations (FFO) is the actual amount of cash flowCash FlowCash Flow (CF) is the increase or decrease in the amount of money a business, institution, or individual has. In finance, the term...
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Lump Sum Contracts in Construction: Pros, Cons & Best Use CasesAll construction contracts address critical aspects of a project, including its scope of work, price and payment terms, schedule and an explanation of each party’s rights and responsibilities. H...