Articles on Stock markets
News, Research and Analysis
What is a Bear Squeeze?
Investors who were bearish on a stock may have chosen to short-sell shares in the hopes that they could cover at a lower price.
Short selling is when a broker facilitates the actions of an investor who wishes to take on the risk of replacing sold shares of a particular stock because he or she believes the price will be lower when he or she replaces the inventory.
The broker passes the proceeds of the sale (minus a fee) along to the investor who is taking the risk of replacing the shares, and charges the investor interest or fees as long as the shares are outstanding. Investors need to cover the short before prices go up and it results in a loss for them.
Covering means to buy the same number of shares which were shorted to restock the inventory of the broker who facilitated the sale. If the stock in question suddenly starts trending upwards with no sign of reversal, many short-sellers will scramble to cover their short positions before the price gets too high.
Of course, the surge of demand as short sellers buy to cover will cause the prices to inflate more quickly than they otherwise would.
What are General Market ETFs?
General market ETFs seek to capture the movements of the market as a whole by tracking major market indices
What is a protective put?
A protective put is an option contract that hedges against losses in a long stock positio
Can I Decide How My Money is Invested in My Defined Benefit Plan?
Employees have no control over the assets in their Defined Benefit plan. The short and simple answer is: No
What is a Registered Investment Advisor (RIA)?
An RIA is an asset manager that is registered with the SEC (in whatever state(s) they operate)
What is a foreign currency swap?
Currency swaps are where banking institutions exchange a loan in one currency for a loan in another currency
What is Mortgage Modification?
Mortgage modifications are arrangements agreed to by the lender that are outside of the contractual mortgage agreement
What is the Rectangle Bottom (Bearish) Pattern?
The Rectangle Bottom pattern forms when a stock’s price is stuck in a rangebound motion, between support and resistance
What is the Prime Rate
The prime rate is the lowest interest rate that banks will charge on loans at a given time, based on the Fed Funds Rate.
What were the Biggest Single Day Market Moves?
The largest single-day point gain occurred on October 13, 2008 and, the largest percentage gain was on March 15, 1933
What is the role of asset allocation in my investments?
The single best control mechanism over the performance of your investments is maintenance an asset allocation strategy