Stock Trading News

What Is Gross Margin? Gross margin is the difference between a product’s selling price and its cost of production. Gross margin is expressed as a percentage of the selling price. For example, if a company sells a product for $100 and it costs the company $90 to produce the product, the gross profit would be […]

What is Working Capital? Working capital (WC), also known as net working capital (NWC), refers to the money that a company has available to meet its short-term obligations. It is a key metric that investors use to assess a company’s financial health and its ability to continue operating and growing. Working capital is calculated by […]

An inverted yield curve is an interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This is considered a negative yield curve, because it is “inverted” from the typical yield curve relationship, in which longer-term rates are higher than shorter-term rates. What Happens […]

Despite being one of the oldest and most well-known indexes in the world, there are still some misconceptions about the S&P 500. Below, we dispel some of the most common myths about this popular market benchmark. 1) The S&P 500 is only made up of US companies A company must be based in the US […]

Alphabet (aka Google) has two classes of shares: GOOGL (Class A) and GOOG (Class C) Difference between GOOG and GOOGL GOOG shares have no voting rights while GOOGL shares do. And the GOOG vs GOOGL debate usually comes down to whether you want to have a say in Google’s corporate decision-making commensurate with your ownership […]

Money weighted return and time weighted return are two concepts in finance that are often confused. Though both are used to measure returns, they differ in how they account for the timing of cash flows. In this article, we’ll look at how MWR and TWR are different and how they’re calculated. Money weighted return vs. […]

What Is a Nash Equilibrium? A Nash equilibrium is a situation in which no player has an incentive to change his or her strategy. In other words, each player is doing the best he or she can given the strategies of the other players. Nash equilibria are important because they provide a way to predict […]

Do you get dividends from index funds? Let’s take a look. Do Index Funds Pay Dividends? Yes, index funds do pay dividends. Given securities within them issue dividends, so too do the index funds themselves. However, the dividends paid out by index funds will vary based on the make-up of the fund. For example, an […]

Over time, real returns (i.e., inflation-adjusted returns) are what matter for your portfolio, not nominal returns. The wealth that we have is not how much money we have. It’s the buying power of that money. For example, if the inflation rate is 5 percent and an asset you hold simply stayed steady all things considered, […]

Understanding bubbles is one of the most important things an investor can learn, because getting the bubble phase right (and knowing when the machine is working in reverse) is often the difference between compounding wealth and watching it disappear. Bubbles are a classic feature of the archetypal big debt cycle. They form when credit growth […]