Articles on Stock markets
News, Research and Analysis
What is Capital Appreciation?
Capital appreciation is an increase in the value of an owned stock. Capital Appreciation occurs when the market price of a stock you own increases.
For more information on stock prices, see "Why Does the Price of a Stock Change?"
Until you decide to sell the shares, you have what is called Unrealized Gains on Capital Appreciation. Something to be wary of: having unrealized gains can be summed up with the old English proverb, "don't count your chickens before they hatch."
As soon as you do sell them, your profit becomes known as Realized Gains on Capital Appreciation. Of course, as long as you have Unrealized Gain, your profits are fully dependent on the market price of the stock in question — a drop in market value would result in Unrealized Losses, and selling those shares would give you Realized Losses.
Once gains or losses are realized through the selling of previously owned shares, the tax implications of the sale become realized as well. If stocks are held without being sold, unrealized gains can avoid taxation for the time being. The taxes due on such a sale are generally going to be long-term capital gains taxes (if held for more than one year), which are generally taxed at a lower rate than income taxes.
What are the Forms of Ownership of a Corporation in the United States?
There are many different forms of ownership of a company in the United States. This subtopic describes some of them
What is the minimum investment in a typical venture capital fund?
Minimum investments into venture capital funds tend to be vast sums of money. They tend to be for $1 million or more
What is Discounted Cash Flow?
Discounted Cash Flow (DCF) uses an estimated future cash flow amount and a Discount Rate to determine the Present Value
What is Burn Rate?
Burn rate is a term for negative cash flow, or the rate at which a company burns through capital, especially a startup
A/A2 — credit rating
The A/A2 rating is considered Upper Medium Investment Grade. The reason there are two ratings separated by a slash...
What is Dividend Growth Rate?
Dividend growth rate is the annual increase in the scale of dividend payments to stockholders. Good dividend growth...
What is Market Value?
Market Value refers to the amount an asset can be sold for on the open market, at any given time
What was the Best Day for the Markets?
The best day for the markets, in terms of the largest single-day point gain for the Dow Jones was October 13th, 2008
What is Mutual Fund Classification According to the Price to Earnings Ratio?
Managing a fund based on P/E Ratio generally tends to put valuation ahead of other criteria when selecting stocks
What is adaptive selling?
Adaptive selling is a marketing principal where the product or services offered are modified based on the demographics