Stock Trading News

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 […]

Corporate restructuring, corporate transactions, and other catalyst-based events in markets are often referred to as special situations. There are many traders, investors, and other market participants who base a portion or all of their strategy on special situations. We’ll cover the various types of special situations, which popularly include spin-offs and divestitures, share repurchases, security issuance or repurchase, […]

Exchange-traded notes (ETNs) are unsecured, senior debt securities issued by an underwriting bank and traded on a major exchange. ETNs represent a promise by the issuing institution to pay the note holder a cash amount equal to the performance of a specified market index, minus fees and expenses. ETNs are similar to other debt securities, […]

Credit derivatives are a type of financial contract that allow investors to hedge or speculate on credit risks. They came into popularity in the early 1990s in the aftermath of a slow-moving global credit crisis that heavily hit commercial real estate (and especially Japan’s economy) and the savings and loan (S&L) industry. Credit derivatives can […]

Hedge fund strategies are generally placed into a few different buckets. The main overaching categories of hedge fund strategies include: global macro statistical arbitrage event-driven directional relative value distressed investing Each of these strategies employs a different approach to investing and comes with its own unique risks and reward profile. There are also numerous sub-strategies […]

When you buy an asset such as a stock, you’re putting up a lump sum payment in exchange for an expected income stream over time. These future payments you’ll receive are determined by four main things. The Big Four inflation growth (the sum of the growth in productivity plus the labor force) risk premiums, and […]

Cloud computing became a hot new industry in the 2010s, and its growth is continuing today as companies around the world shift their digital data and services to the cloud. Namely, these data, files, and services are being shifted to remote data centers and accessed via the internet. The move to remote work only accelerated […]

Short selling is not a widely understood phenomenon in markets. Some even attach moral or ethical implications to it. Various executives have come publicly complained about short selling, from Tesla’s Elon Musk to several high-profile frauds and business failures blaming their downfall on short selling, such as Enron, Worldcom, and Wirecard. We’ve covered short selling […]