invest
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Value Traps: Identifying & Avoiding Investment Pitfalls
A value trap occurs when an investor looks at the fundamentals and market priceDow Jones Industrial Average (DJIA)The Dow Jones Industrial Average (DJIA), also referred to as Dow Jones” or the D
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Value Stocks Explained: Investing in Undervalued Companies
Value stocks are stocks that are currently trading at a price lower than their actual intrinsic price. It basically means that the stocks are undervalued, i.e., traded at a price lower than their true
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Value Line Composite Index: Definition, History & Composition
The Value Line Composite Index was launched in 1982. It was the first market index to trade in the futuresFutures and ForwardsFuture and forward contracts (more commonly referred to as futures and for
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Understanding Value Change: How Share Prices Reflect Market Dynamics
Value change refers to the change made to the price of shares to match the number of all outstanding shares issued and currently held by investors. The daily change in demand and supplySupply and Dema
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Value at Risk (VaR): Understanding Investment Risk
Value at Risk (VaR) is a financial metric that estimates the risk of an investment. More specifically, VaR is a statistical technique used to measure the amount of potential loss that could happen in
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Valoren Numbers in Switzerland: A Comprehensive Guide
A valoren number is an identification number that is assigned to financial instruments such as stocksStockWhat is a stock? An individual who owns stock in a company is called a shareholder and is elig
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USD/CAD Currency Pair: Understanding the US Dollar to Canadian Dollar Exchange
The USD/CAD currency pair represents the quoted rate for exchanging US to CAD, or, how many Canadian dollars one receives for every US dollar. For example, a USD/CAD rate of 1.25 means 1 US doll
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Understanding Underweight Stock Recommendations: What They Mean
When a market analyst designates a stockStockWhat is a stock? An individual who owns stock in a company is called a shareholder and is eligible to claim part of the company’s residual assets and
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Understanding Undervalued Assets: A Comprehensive Guide
An undervalued asset is an investment that can be purchased for less than its intrinsic value. For example, if a company has an intrinsic value of $11 per share but can be purchased for $8 per share,
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Understanding Underperformance: Causes, Effects & Solutions
In a general sense, underperforming refers to performing poorly or unsatisfactorily in comparison to expectations or when evaluated against a certain standard. For example, one can perform poorly by f
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Understanding Underlying Securities: A Key to Derivatives Investing
Underlying security is a term in investing that denotes the negotiable financial instrument upon which a financial derivative, such as an option on a stock – is based. Therefore, the value of th
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Understanding Underlying Assets: Definition & Importance
Underlying asset is an investment term that refers to the real financial asset or security that a financial derivative is based on. Thus, the value of the underlying asset drives the value of the fina
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Uncovered Interest Rate Parity (UIRP): Explained & Implications
The Uncovered Interest Rate Parity (UIRP) is a financial theory that postulates that the difference in the nominal interest rates between two countries is equal to the relative changes in the foreign
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Understanding Security Types: A Comprehensive Guide
There are four main types of security: debt securities, equity securities, derivative securities, and hybrid securities, which are a combination of debt and equity. Fig. 1. Types of Securities&nb
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Understanding Market Types: Dealers, Exchanges & Brokers
In the exchange of assets, there are several different types of markets to facilitate trade. Each market operates under different trading mechanisms,Trading MechanismsTrading mechanisms refer to the d
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TRIN Indicator: Understanding Market Sentiment & Short-Term Trends
The TRIN indicator, also known as the ARMS index because it was developed by Richard Arms, is functionally an oscillator-type indicator that is primarily used to identify short-term overbought or over
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Triangular Arbitrage: Definition, Strategy & How It Works
A triangular arbitrage opportunity is a trading strategy that exploits the arbitrage opportunities that exist among three currencies in a foreign currency exchange. The arbitrageArbitrageArbitrage is
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Understanding Triangle Patterns in Technical Analysis
Triangle patterns are a commonly-used technical analysis tool. It is important for every traderEquity TraderAn equity trader is someone who participates in the buying and selling of company shares on
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Treasury Direct: Your Direct Access to U.S. Treasury Securities
Treasury Direct is the online platform through which investors can purchase U.S. government securities directly from the U.S. Treasury. Such securities include Treasury bills (T-bills)Treasury Bills (
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Treasury Bonds: A Comprehensive Guide to U.S. Government Debt
A Treasury bond (or T-Bond) is a long-term government debt security issued by the U.S. Treasury Department with a fixed rate of return. Maturity periods range from 20 to 30 years. T-bond holders recei
invest
- 2010 Flash Crash: Causes, Impact, and Lessons Learned
- Fixed Income Glossary: Key Bond Terms & Definitions
- Financial Leverage: Definition, Benefits & Risks Explained
- Bonus Shares: Understanding Free Stock & How They Work
- Weighted Moving Average (WMA): Definition, Calculation & Trading Strategies
- Income Investing: Generate Passive Income with Bonds & Dividends
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Vertical Spreads: Calculate Risk & Profit PotentialOption traders will often trade a consistent quantity when initiating vertical spread trades. Although this method keeps the contract numbers orderly, it ignores the fact that each vertical spread has...
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Social Security Tax Burden: Why Reform is NeededPeople on Social Security need a tax break. The rest of us need to make sure they get it — for everyone’s sake. When Congress made Social Security benefits taxable in 1983, lawmaker...
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When Do Adults Become Financially Independent? A GuideParents are responsible for taking care of their children, and that means emotionally, physically — and financially. But how old is too old to be receiving money from mom and dad? A new Bankrat...
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Understanding Tax Deductions: What Businesses Need to KnowA tax deductible expense is any expense that is considered “ordinary, necessary, and reasonable” and that helps a business to generate incomeTaxable IncomeTaxable income refers to any indi...