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What is absolute frequency?
In statistics, the number of times that a specific value shows up in a data set is the absolute frequency of that value. The absolute frequency can then be used to find the relative frequency, which is the probability that the specific value is observed in a given number of trials. The relative frequency (empirical probability) takes the absolute frequency and divides it by the total number of trials (cumulative frequency), and can be expressed as a ratio or percentage. Continue reading...
What is a "spread"?
Spread has several meanings in finance, but the most general usage is to describe the difference between the bid and the ask prices for a security, where a narrower spread would indicate high trading volume and liquidity. It also might refer to a type of options strategy in which an investor purchases two calls or two puts on the same underlying security but with different expiration dates or strike prices. Continue reading...
What does Bid Mean?
When you make a ‘buy offer’ on a stock or other security in the financial markets, you are making a Bid. A Bid offer in terms of financial markets is the price offered by an investor or trader for a security. A market maker will try to reconcile Bid offers (the highest prices that buyers are willing to pay) with Ask offers (the lowest price that a seller is willing to accept). Match the Bid and the Ask offers, and you’ve got a trade. Continue reading...
What is the Bid-Ask Spread?
The Bid-Ask Spread is the difference between an offer made on a security and the price a seller is willing to accept. The Bid-Ask Spread is the amount by which the ask price exceeds the bid. For example, if the bid price is $50 and the ask price is $51 then the "bid-ask spread" is $1. The larger the bid-ask spread, the less liquid the market for that particular security - buyers and sellers are too far apart for trades to occur easily. When trading, investors have to pay attention to the bid-ask spread, because it is ultimately an additional cost to investing in or trading stocks. Continue reading...
Which is Better for Me – a Roth or Regular 401(k)?
Some 401(k)s give participants the ability to make after-tax contributions, which raises the question of which fits better into a person’s retirement plan. One advantage to Roth 401(k)s is that they do not have income limits which may have barred certain high earners from contributing to a Roth IRA in the past. Down the road in retirement, it may be advantageous for someone with significant savings to be able to take some withdrawals that do not increase his or her income tax bracket. Continue reading...
What is market efficiency?
Market efficiency describes the degree to which relevant information is integrated into the price of a security. With the prevalence of information technology today, markets are considered highly efficient; most investors have access to the same information with prices and industry news, updated instantaneously. The Efficient Market Hypothesis stems from this idea. Efficient markets are said to have all relevant information priced-in to the securities almost immediately. High trading volume also makes a market more efficient, as there is a high degree of liquidity for buyers and sellers, and the spread between bid and ask prices narrows. Continue reading...
What does Ask Mean?
In the financial markets, “Ask” is the price that a seller is willing to accept for a security. It is also known as the offer price. Given the market is constantly changing, Ask prices are rarely set in stone for long. What’s more, the Ask price on a security may not necessarily be the best going price available for it. It merely represents what that particular seller is willing to accept for it. What is a “Spread”? What is a Market-Maker Spread? Continue reading...
What is a market-maker spread?
The difference between the Bid and Ask prices on a stock or other security are known as the Spread. Designated market makers are traders whose job it is to make a market for securities, by offering to buy or sell shares, and thus creating liquidity, often at the same time. Their money is made on the spread. In highly liquid markets, the spread will shrink. So if everyone is buying and selling the same stock one day, there may be virtually no spread between the Bid and the Ask price, and this is seen as efficient. Continue reading...
What is a Reverse Stock Split?
A reverse stock split consolidates stocks at a certain ratio and reduces the number of shares outstanding while increasing the value of each share, as opposed to a regular stock split, which divides existing stocks into more shares which are worth less apiece. A normal stock split, which increases the number of shares an investor owns without increasing the total value of his or her interest in the company, has the benefit of increasing liquidity with the shares and possibly narrowing the bid/ask spread. A reverse stock split reduces the number of shares in circulation by effectively combining the existing shares at a certain ratio (such as, 2 shares now equals 1 share). Continue reading...
Top Sin Stocks
In the diverse world of investing, certain sectors perennially draw attention, not only for their resilience during economic downturns but also for the ethical debates they spark. Among these, "sin stocks," encompassing companies in gambling, alcohol, tobacco, and certain facets of the entertainment industry, stand out. This article delves into the allure of sin stocks, spotlighting the most notable players in the sector and evaluating their investment potential. With a combined market capitalization of $49.5 billion, these companies offer a unique blend of stability, controversy, and profitability. Continue reading...
What are the key tips to consider when purchasing a HUD home?
Unlock the secrets to successful HUD home buying! Discover how to prep your finances, assemble your dream team, and win competitive bids. Explore financing options and weigh the pros and cons. Make informed decisions in the competitive real estate market. Your dream home awaits! #HUDHomeTips 🏠🔑 Continue reading...
Big Data Stocks: The Future of Information Analysis
Unlock the potential of the tech world's most influential sector: Big Data. From industry giants like Oracle and IBM to emerging players, delve into the stocks shaping the future of data-driven decision-making. Dive in to discover where smart money is headed in 2023 Continue reading...
Setting Up a Winning Blueprint for Stock Market
Unlock the full potential of your trading strategy with a deep dive into the realms of fundamental analysis (FA), technical analysis (TA), and quantitative analysis (QA). Learn how the unique strengths of each approach can be synergized for a more informed, comprehensive view of the market. Whether you're analyzing the intrinsic value of securities, predicting future trends, or employing mathematical models, discover how integrating these methodologies can elevate your decision-making Continue reading...
The W-9 Form: How Do You Understand It?
The W-9 form is an essential document for independent contractors, freelancers, and certain financial institution customers. It ensures the IRS has the necessary information to track income and ensure the correct taxes are paid. Continue reading...
What is Volume?
Volume is a count of trades in a security or market, or their derivative instruments and can be indicative of trends and sentiment. Volume is the number of trades in a security or market in a given time. Trade volume is important because it helps analysts pick apart the factors driving a trend or get an idea of the strength of a trend. Potential buyers and sellers can push the Bid and Ask prices around at will, hypothetically, but a trade only occurs when the buyer and seller transact business; also, even only a minimal number of trades can move prices around, but this is not indicative of a strong trend — a few trades more and the price is where it was before. Continue reading...
How Statistical Arbitrage Can Lead to Big Profits?
Statistical arbitrage is one of the most influential trading strategies ever devised. It thrives on the idea that financial markets are not always perfectly efficient, and there are opportunities to profit from short-term price discrepancies. In this article, we'll delve into the world of statistical arbitrage, exploring its origins, strategies, and the impact it has on financial markets. Continue reading...
How can small, quick profits accumulate through scalping?
Unlock Small, Quick Profits with Scalping in Trading! Dive into the world of rapid gains through small price changes. Discover scalping strategies, the benefits, and expert tips for novice scalpers. Start your journey to success in this exciting trading style. #TradingTips #ScalpingStrategies Continue reading...
Is Investing in Property Tax Liens a Lucrative Opportunity?
One investment niche that often goes unnoticed amidst the glamour of stocks and traditional real estate is property tax liens. These legal claims against assets serve as an alternative investment avenue for those seeking above-average returns. In this article, we will delve into what property tax liens are, how to invest in them, and the potential disadvantages associated with this investment vehicle. Continue reading...
What Are Real-Time Quotes and How Do They Impact Trading Decisions?
Dive into the dynamic world of trading with our expert guide on real-time quotes (RTQs). Unveil the power of instant pricing to make swift, informed decisions. Whether you're a day trader or a seasoned investor, understanding RTQs is key to navigating the markets with precision. Get ahead with our insights on the latest tools and technologies that provide you with the real-time data you need. Don't miss out on the opportunity to trade smarter and faster. Explore our comprehensive guide now and transform the way you invest! Continue reading...
What Is Business Intelligence (BI)?
Unlock the power of data with Business Intelligence (BI)! Dive into its evolution, tools, and how BI turns raw data into strategic insights for informed decision-making in today's business landscape. Continue reading...