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Who is an activist investor?

Activist investors buy enough voting shares to influence the decisions of a company, sometimes for political or moral reasons, sometimes for purely financial reasons. Activist investors can act alone or in groups, but their goal is to acquire enough shares of a company’s equity to influence the company’s decisions. Activist shareholders may need as little as 10% of shares to sway corporate governance. Continue reading...

What is a penny stock?

A penny Stock is a term for equity shares valued below $5, many of which are not registered with the SEC and trade over-the-counter. They do trade on over-the-counter exchanges regulated by FINRA. Penny Stocks are equity in companies that may be small or have bad credit ratings, whose shares are priced below $5, per the SEC definition, but below $1 in the more widely accepted street definition. Because they do not have to observe all of the disclosure requirements of the SEC, there is not very much transparency about the companies or brokers issuing penny stocks. Continue reading...

How Does HIPAA Impact Financial Perspectives?

Ever wondered how your medical data remains private and secure? Dive into the world of HIPAA, the groundbreaking act that revolutionized healthcare privacy and data protection. From its inception in 1996 to its modern-day implications, discover how HIPAA shapes the healthcare landscape Continue reading...

What Are the Dynamics and Implications of the Black Market?

Ever wondered about the shadowy world of the black market? From illicit drug trades on street corners to high-stakes transactions on the dark web, delve into the hidden economy that operates beyond government regulations and discover its profound impact on society. Continue reading...

How can I invest in hedge funds?

Fund managers are allowed to accept up to 35 non-accredited investors, but for the most part you will either need to satisfy the “accredited investor” requirement of the SEC to invest directly in a hedge fund. Otherwise, there are now hedge fund indexes and ETFs that track and mimic hedge fund strategies that are accessible to everyone. You should know now that the minimum initial investment requirement to participate in a hedge fund can be quite large, such as upwards of $1 million. Continue reading...

Exploring Cryptocurrency Markets: An In-Depth Guide to Exchanges

Dive into the fast-paced world of cryptocurrency: Discover key exchanges, investment strategies, and the power of AI to navigate the volatile market. Whether you're a novice or seasoned investor, unlock the secrets to secure trading and potentially lucrative opportunities in digital finance. Continue reading...

What is the Investment Company Act of 1940?

The ‘40 Act, as it’s sometimes called, defined and delineated rules for investment companies, which today are known as mutual funds, investment trusts, ETFs, and so on. The ‘40 Act, along with the Securities Act of 1933, and the Securities Exchange Act of 1934, have formed the foundation for regulation in the investment industry in the US. The ‘40 Act defines investment companies and stipulates how they are to represent themselves and disclose information about the funds they sell to the public. Continue reading...

What are Unlisted Trading Privileges (UTP) and how do they function?

Discover the World of Unlisted Trading Privileges (UTP) and Their Impact on Modern Trading. Learn how UTPs provide market accessibility, enhance liquidity, and promote cross-market trading. Dive into the Unlisted Trading Privileges Act of 1994, key provisions, and regulatory oversight. Stay ahead in the dynamic world of finance! #UTP #Trading #Finance Continue reading...

What is Chapter 9?

Chapter 9 is a form of bankruptcy filing that is reserved for municipalities which have defaulted on their debt obligations. This could include a school district or other entities which have a municipal affiliation and the ability to generate revenue from local taxes. They cannot be made to liquidate anything. In fact, it forces the lender to accept a refinancing of the debt obligation. Because municipalities fall under state jurisdiction, the federal government, which governs bankruptcy court, does not have the ability to force liquidation of a municipal entity’s assets. Instead, this provision of bankruptcy law governs refinancing arrangements to facilitate the repayment of debts owed. Continue reading...

What Is a Conventional Mortgage or Loan?

When it comes to buying a home, securing the right financing is crucial. One common option for homebuyers is a conventional mortgage or loan. In this article, we'll explore what a conventional mortgage entails, how it differs from other types of loans, and who may be eligible for it. A conventional mortgage is a homebuyer's loan that is not offered or secured by a government entity. Instead, these mortgages are available through private lenders, including banks, credit unions, and mortgage companies. Continue reading...

How Does Reimbursement Work? A Comprehensive Guide

Reimbursement is a financial mechanism where an organization compensates an individual or another entity for expenses they've incurred on the organization's behalf. This is not a reward or a bonus but a repayment for out-of-pocket expenses. Common scenarios include business-related expenditures, insurance claims, and overpaid taxes. Importantly, unlike regular compensation, reimbursements are typically not subject to taxation. Continue reading...

What Is a Cross Trade?

This method involves matching buy and sell orders for the same asset without executing the transaction on the exchange or making it visible to other traders. While not allowed on most major exchanges, there are situations where cross trades are permitted, albeit under stringent guidelines. One legitimate scenario involves a broker executing matching buy and sell orders for the same security across different client accounts. Continue reading...

What is a short sale?

A short sale is the sale of a security not owned by an investor, which the investor has borrowed from the broker in order to sell. An investor can use his broker to give him the ability to sell shares that he does not have in his inventory. The investor believes that the stock price will be lower in the near future, and will replace the borrowed shares by purchasing them at the (possibly) lower price in the future. Continue reading...

Who is a commodity trader?

Commodity traders must at least pass the FINRA Series 3 exam, which focuses on the commodities market exclusively. The term “trader” is often used in reference to the people at an investment firm who work on the actual trading desk, sometimes executing trade orders from the front office but also trading for the account of the firm and sometimes giving investment advice. Traders often have a role to seek out and engage in trades that will improve the portfolio of the firm at which they are employed and benefit the clients of the firm. Commodity traders could work for a commodity pool or they could be a commodity specialist at a firm focused on a wider variety of investing. Continue reading...

What Is the Nasdaq 100 Index?

Unlock the secrets of the Nasdaq 100 Index! From tech titans like Microsoft and Apple to innovative sectors shaping our future, dive deep into the world of top companies and investment avenues. Your journey into global market performance starts here. Continue reading...

What are 'non-marginable' securities?

Some securities, such as penny stocks and IPOs, are prohibited from being purchased on margin or for serving as margin for other purchases. Stocks and other securities that are too volatile to serve as margin collateral - or to be purchased on margin - are called Non-marginable Securities. The Federal Reserve Board has defined certain criteria for determining which securities are non-marginable, and brokers often have their own house rules for traders. Continue reading...

What is a foreign institutional investor?

Institutional investors are corporations, banks, pension funds, mutual funds, and other forms of pooled capital which act as one entity to engage in securities transactions in the best interest of the constituents or company that they represent. Foreign Institutional Investors are those whose company is based in another country. Investments made on behalf of foreign companies, foreign financial institutions, and foreign funds (such as the foreign equivalent of hedge funds, mutual funds, and pension funds) are foreign institutional investments. There are usually reporting requirements for both the foreign government for the county in which the interests are held and for the domestic government of the institutional investor. Continue reading...

What is KOSPI and How Does It Reflect South Korea's Economic Landscape?

Dive into the world of KOSPI, the pivotal index that mirrors South Korea's financial vitality. Comparable to the U.S.'s S&P 500, KOSPI offers a panoramic view of Korea's stock market, from giants like Samsung to emerging players. Tracing its roots from the 1980s, KOSPI has weathered global crises, showcasing the resilience of the Korean economy. Whether you're an investor eyeing the Asian markets or a finance enthusiast, this deep dive into KOSPI provides a holistic understanding of South Korea's economic trajectory. Discover the intricacies, investment strategies, and the undeniable significance of KOSPI in the global financial arena. Continue reading...

What Is the Financial Industry Regulatory Authority (FINRA)?

To ensure that the financial industry in the United States adheres to strict rules and operates fairly, the Financial Industry Regulatory Authority (FINRA) plays a pivotal role. In this article, we will delve into the definition, functions, and importance of FINRA in the financial world. he Financial Industry Regulatory Authority, commonly referred to as FINRA, is an independent, non-governmental organization tasked with creating and enforcing regulations for registered brokers and broker-dealer firms within the United States. Continue reading...

What Is a Skilled Nursing Facility?

When it comes to making healthcare decisions for yourself or a loved one, understanding the options available is crucial. One such option is a Skilled Nursing Facility (SNF). In this article, we'll delve into what a Skilled Nursing Facility is, how it operates, and how it differs from a Nursing Home. A Skilled Nursing Facility is an in-patient rehabilitation and medical treatment center that boasts a dedicated staff of trained medical professionals. Continue reading...