Stock Trading News

Asset allocation and diversification might be related concepts in finance, trading, and investing, but there are slightly different. Asset allocation refers to the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The asset allocation process takes into account the investor’s goals, risk tolerance, and investment horizon. Diversification […]

This article was published on May 28, 2022. A US dollar devaluation would have an impact on movements in other asset classes. Currency volatility picked up with more inflation risk in 2022.       Post-2008, we’ve mostly been in a low interest rate world. However, when interest rates become so low to the point […]

An asset is a resource that is owned or controlled by an individual, company, or government with the expectation that it will provide economic benefit. Companies generate revenue from their assets, so they represent the foundation of the valuations of the company that underlies stock prices. Assets can also typically be exchanged or sold. Common […]

What does the SPAC acronym mean? SPAC is short for a Special Purpose Acquisition Company, also known as a “blank check” company. Here we explain the analytics and meaning of SPAC in investing terms. A SPAC is essentially large pool of cash, which is listed on a public exchange with the sole purpose of completing […]

Your personal savings rate and consistency in saving is the number one reason why people succeed in their trading and investing endeavors. If you don’t save anything, you won’t have anything to work with. To show why, let’s look at a simple example of someone routinely, without fail, putting $1,000 into the market each month, […]

Eurodollars are deposits of US dollars in foreign banks, or in the foreign branches of American banks. The eurodollar market is the global market for these deposits. There is no one eurodollar market. Instead, eurodollars are traded in a number of different markets, including London, Frankfurt, and Zurich. In addition, eurodollars can be traded in […]

Equity swaps are derivative contracts that allow two parties to trade equity exposure in a way that suits their needs. The most common type of equity swap is the equity total return swap, which allows one party to receive the total return from an equity index or basket of stocks, while the other party pays […]

Much has been made of the idea that value investing is badly lagging other trading strategies. When liquidity is abundant, as it mostly has been since 2009 due to the fallout from the financial crisis, long-duration growth stocks tend to outperform value. Nonethless, AQR’s value gauge is reporting the highest value spread since the dot-com […]

Financial markets are a mix of different participants, who have different sizes and different motivations. This is important to get at because the prices of all assets are just the total amount spent on them (with either money or credit) divided by their quantity. All markets and their pricing are just mixes of these participants. […]

In this article, we’re going to cover more than 25 of the most common types of equity offerings and security types. What are equity offerings? An equity offering is when a company sells its shares in the open market. This can be done through an equity dealer or on a stock exchange. There are many […]