EDU Articles
Popular articles
What was the Mt. Gox Incident?
There have been many incidents where cryptocurrency has been stolen, but the Mt. Gox incident is the largest to date Mt. Gox was at one time the largest cryptocurrency exchange on the net, facilitating as much as 80% of global bitcoin trades, according to some sources. And then about 850,000 bitcoin suddenly went missing. At the exchange rate in 2014, when the problem came to light, that many bitcoin were worth about $450 USD. At the time of this writing, with Bitcoin at a high in 2017, that man... Continue reading...
What Does Mark to Market (MTM) Mean?
Mark to Market (MTM) is an accounting method meant to price an asset by its most recent market price. An example would be mutual funds, whose “NAV” price is a mark to market price of how much the mutual fund closed for at the end of a trading session. The mark to market accounting method has some pros and cons. On the pro side, if an asset is very liquid, then MTM will provide an accurate reflection of its current value. Continue reading...
What are “Dark Pools” of Money?
Large institutional investors sometimes trade on “Electronic Trading Crossing Networks," which allow them to conduct trades without publicly exposing them. They are used by financial institutions to move large blocks of shares without public investors even knowing about such transactions. Such examples of networks are “Liquidnet,” “Pipeline,” “SIGMA X,” and many others. It might be difficult to fathom the size of the transactions conducted over these networks, but the ownership of dark pools involves almost every institutional trading house. This is a huge business and regulators are carefully looking into their activities. Continue reading...
How Do I Structure My Bond Portfolio?
There are three major ways to structure a bond portfolio: a ladder strategy, a barbell strategy, and a bullet strategy. A ladder strategy is structured by purchasing bonds of varying maturity dates, all at the same time. This means there will be several opportunities to make decisions at different dates in the future, so the owner of this portfolio keeps his or her options open to some extent, and has some liquidity over the course of the duration. A ladder might be used when rates are expected to stay about the same. Continue reading...
What is the October Effect?
The October Effect, also known as the Mark Twain Effect, is an anecdotally-founded fear that markets are vulnerable to catastrophe in the month of October. Several Octobers have appeared to be the origin of problems in the market: in 1929 at the onset of the Great Depression, the 1987 crash, and in 2008 at the start of the Great Recession. Perhaps superstitiously, many people expect October to be the worse month of the year for the market, supposing that if something bad were going to happen, it would happen in October. Statistically, there isn't much support for this idea. Continue reading...
What is After-Hours Trading?
After-Hours Trading on the Nasdaq can take place after market close from 4-8pm EST or in the pre-market hours from 4-9:30am EST. Pre- and Post-market trading used to be reserved for large institutional investors or high net worth individuals, but is now made possible through the improvements to electronic trading networks and the demand from individuals trading from their computers at home. Interestingly, institutional investors can trade anonymously on the after-hours Nasdaq market, such that virtually no one knows what positions they take during that time. This is called trading in “dark pools of liquidity.” Traders on the after-hours Nasdaq cannot make certain kinds of trades or use certain instruments. Continue reading...
How to use the Chaikin Oscillator in trading
The Chaikin Oscillator is a volume indicator that can help traders discern if price movements are verified by changes in trading volume. When there are discrepancies, it can mean that prices are exhibiting overbought or oversold conditions. Before the Chaikin Oscillator, On-Balance Volume was the most popular indicator for the job. On-Balance Volume (OBV) is a popular leading indicator introduced in the 1960s by Joe Granville. OBV is a line built using differences between daily trading volume – in Granville’s estimation, the major driver of market behavior – adding the difference on days that the market or stock moves up and subtracting the difference on days when the market or stock moves down. It looks for instances of rising volume that should correlate with price movement, but price movement has not occurred; additionally, OBV can be used to confirm lag. Continue reading...
What Is Marxism and Differentiates from Other Socio-Political Theories?
Journey into the world of Karl Marx, the visionary behind Marxism. From dissecting capitalism's flaws to envisioning a revolutionary alternative, Marx's ideologies have shaped centuries of socio-political discourse. Delve into the essence of class struggle, the critique of economic disparities, and the quest for a just world. As society grapples with modern challenges, Marx's legacy offers a lens to understand and inspire change. Continue reading...
What is the Barbell Strategy for Structuring my Bond Portfolio?
A barbell strategy avoids intermediate-term bonds and equally invests in very short term and very long term durations. The barbell strategy divides a sum, for instance $10,000, equally among bonds with short durations and bonds with long durations. If the interest rates will go up sharply, the proceeds from your short-duration bonds will be reinvested into new bonds with much higher coupons. If the interest rates drop sharply, the proceeds from the bonds with shorter durations will be reinvested at a much lower coupon, but on the other hand, your long-duration bonds will rise sharply in price. Continue reading...
Cargo Industry's Top Stocks
The cargo industry, an essential component of the global economy, represents a diverse mix of companies specializing in transportation and logistics. Notably, this sector includes prominent airlines and trucking companies, each playing a critical role in the movement of goods across the world. This article delves into the financial performance and market positioning of top companies within the cargo theme, highlighting United Parcel Service (UPS), FedEx Corp (FDX), Delta Air Lines (DAL), United Airlines Holdings (UAL), C.H. Robinson Worldwide (CHRW), and American Airlines Group (AAL), among others. Continue reading...
What is commodity-product spread?
The commodity-product spread is the difference between the price of a commodity and the price of the products at the next level of consumption which is made from the commodity. In the oil industry, this is known as the crack spread, in the soybean industry, it is known as the crush spread. Some pre-packaged long/short futures strategies that trade on this spread are offered on futures exchanges. The commodity-products spread is the difference in prices between a raw material and a product made from it, such as raw crude and gasoline. This difference gives a rough estimate of production costs and profit margin. Continue reading...
Top Specialty Insurance Stocks
Specialty insurance, a niche within the broader insurance industry, caters to unique and specialized needs that often go beyond the coverage provided by standard insurance policies. This sector focuses on safeguarding items and assets that hold exceptional value or require specialized protection. Whether it's insuring a rare collector's item, a high-value residence, recreational vehicles, sailboats, or even unique assets like horses, farms, and fine art collections, specialty insurance providers have carved a niche for themselves. In some instances, specialty insurance complements existing auto, home, and umbrella policies, offering comprehensive protection. Continue reading...
Do ROA and ROE Truly Reflect the True State of Corporate Health?
Both return on equity (ROE) and return on assets (ROA) measure performance, but sometimes they tell a very different story. This is why they’re best used together. Continue reading...
How Did Ticker Tape Evolve from Analog to Digital?
From the rhythmic ticking of 19th-century machines to today's digital streams, ticker tape has revolutionized the way we view stock market data. Journey through time and uncover the fascinating evolution of this iconic financial tool. Continue reading...
Top Companies In North America
In the realm of stock market investments, the quest for robust, high-performing stocks is unending. This analysis delves into a group of notable companies, spanning various sectors, each presenting unique opportunities and challenges to investors. These companies include Shopify (SHOP), Canadian Natural Resources Limited (CNQ), lululemon athletica (LULU), Marvell Technology (MRVL), Suncor Energy (SU), Barrick Gold Corp (GOLD), Wheaton Precious Metals Corp (WPM), Cameco Corp (CCJ), Teck Resources Limited (TECK), and Cemex SAB de CV (CX). Continue reading...
What Are the Different Types of Economies and How Do They Influence Global Dynamics?
Economies, the lifeblood of societies, are intricate systems of production, consumption, and exchange. But what shapes these vast networks? This guide delves into the essence of economies, from their foundational principles to the indicators that gauge their health. Explore the spectrum from market-based to command-based economies, and understand the nuances of macroeconomics versus microeconomics. Discover pivotal indicators like GDP, unemployment, and inflation, and trace the historical arc of economic systems, from primitive barter to modern capitalism. With insights into economic theories, the role of economists, and the emerging field of behavioral economics, this comprehensive exploration offers a panoramic view of the forces that shape our economic landscapes. Whether you're a student, professional, or curious reader, this guide illuminates the multifaceted world of economies, empowering you with knowledge to navigate the complex terrain of global finance. Continue reading...
Top Stocks Vaccine Industry
In the ever-evolving landscape of healthcare, the vaccine industry stands out as a beacon of innovation and resilience. This subset of the biotech and pharmaceutical sectors is not just about combating seasonal flu or childhood diseases; it's at the forefront of addressing global health challenges. The current players in this domain, notably Merck & Co (MRK), Pfizer (PFE), and Novavax (NVAX), are not just manufacturers of vaccines but pioneers in medical science. Continue reading...
What are Some of the Biggest Bankruptcies in Recent History?
Before Lehman Brothers and Bear Sterns, probably the most well-known and publicized bankruptcy was the infamous Enron scandal. To summarize, Enron executives, fully aware that the company was insolvent, started to sell their stock, while convincing the general public that the stock would continue to rise and the company was prospering (despite actual horrendous losses). As the stock dropped lower and lower, the executives continued to lie to the public, and most people fell into the trap, convinced that the low stock prices were a great opportunity (the stock was going to rebound any day – or so they thought). Continue reading...
Who Are the Top 10 Most Renowned Traders in the World's History?
Why Should I be Extremely Careful with Commodities ETFs?
There are some things to keep in mind when investing in commodities and their ETFs. Most commodities trading revolves around who owns a hard asset and when. ETFs occupy a space in the commodities world that is somewhat unique. An ETF such as the Crude Oil Index does not physically buy millions of barrels of oil and store them. It buys financial instruments which theoretically should reflect the price of oil. Continue reading...