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What should I look for in a good “Lease or Buy a Car” calculator?

What should I look for in a good “Lease or Buy a Car” calculator?

Calculators are available to help you decide whether to lease or buy a car. Despite the advice of our older family members, many financial decisions will benefit from the use of math and technology, instead of just “rules of thumb,” and they will depend on the circumstances present at the time of the decision. Despite the fact that you may have purchased a vehicle or two in the past, you might benefit from using an online calculator that can help you compare whether it might be in your best interest to lease the vehicle this time or buy it. Continue reading...

Should I Trust the Opinions Expressed by Various Financial Analysts?

Should I Trust the Opinions Expressed by Various Financial Analysts?

Studies suggest that it is not wise to put too much faith in any market analyst or commentator – but it may be wise to listen to as many of them as possible. There have been many studies surrounding the predictions of financial analysts who seek to foretell the direction of the economy, particular sectors, or even individual stocks. The studies reveal that it isn’t wise to rely on the forecasts of any one commentator or analyst. Continue reading...

What is an Annuity?

What is an Annuity?

Annuities are financial products developed and sold generally by insurance companies, and they are designed to protect an investor’s principle against the risks of market fluctuations and longevity (life expectancy). Annuities get their names from a series of payments which are based on an annualized payout rate. Annuities formerly just offered fixed payments for life, like a pension, and they were developed by life insurance companies who would use their mortality tables to determine the payout rates. Continue reading...

What Does Market Capitalization Mean?

What Does Market Capitalization Mean?

Market Capitalization refers to the total ‘market-size’ of a company, calculated by the number of shares outstanding multiplied by the stock price. Investors should take care not to consider a company’s market capitalization as an accurate reflection of the company’s actual size by assets. Companies with very large market capitalizations can still operate with net losses, Twitter being an example. Continue reading...

What is a REPO?

What is a REPO?

REPO is shorthand for Repurchase Agreement. It is a money-market practice where two entities agree to buy/sell government securities overnight and reverse the transaction the next day for the sake of providing the selling entity with short-term cash. Repurchase Agreements provide the selling party with short term liquidity, and are considered a money-market instrument. A third party usually acts as a clearing agent. Continue reading...

What is the Advance/Decline Divergence Oscillator?

What is the Advance/Decline Divergence Oscillator?

The advance/decline divergence oscillator (also called the McClellan Oscillator after its creators) tracks the rate of change in the advance-decline line (net advances). The AD line is formed from the Net Advances/Declines calculated daily at market close; this represents the proportion of stocks which advanced (increased) in price that day versus those which declined – the size of the difference is called the daily breadth. The advance/decline divergence oscillator can be applied to any group of stocks or exchange. Continue reading...

What is the Price to Sales Ratio (P/S Ratio)?

The Price to Sales Ratio, also known as the PSR, is a valuation metric that looks at a stock’s market price versus its per share revenue. Alternatively, you can calculate it by dividing a company’s total market capitalization by its total revenue in the most recent fiscal year. The ratio indicates how much value (how much investors are willing to pay) is placed on each dollar of revenue generated by the company. Continue reading...

What does “Buy to Close” Mean?

When an investor takes a short position on an option contract by selling (“writing”) a call or put option, he or she is opening a position, which creates more open interest in an underlying security which will be handled by the brokerage house, and this is called “selling to open.” If the price changes in the underlying security in an unfavorable way, the investor will seek to get out of the short position he holds on the options contract before the option’s expiration date. To do so, the investor must buy back the option (or, really, cancel out the position by buying the same kind of contract that he or she previously sold short). Continue reading...

What is a Bank Statement?

A Bank Statement is a report issued to an account holder on a regular basis, such as monthly, which contains the account balance as of the date of the report and usually a history of transactions for the period. A Bank Statement will usually be mailed, either by the postal service or electronically, to a banking customer every month. The statement will represent a summary of the bank’s records for the recent month on a particular account, and will probably show all transactions posted to the account, along with the ending balance of the account as of the date of the mailing. Continue reading...

How to use the Broadening Wedge Descending (Bullish) Pattern in trading

How to use the Broadening Wedge Descending (Bullish) Pattern in trading

Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price level. To identify an exit, compute the target price for by adding the height of the pattern to the upward Breakout level. Pattern height is the difference between the highest high and the lowest low. The upward Breakout level is the highest high. Continue reading...