Articles on Stock markets
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What is an Illiquid Security?
An illiquid security is one that cannot easily be sold or exchanged for cash on a timely basis.
The lack of ready buyers tends to create a fairly sizable discrepancy between what a seller wants and what a buyer is offering, versus an orderly market where assets change hands at high volumes and therefore have high liquidity. An illiquid security should generally be held only if the investor/owner has a long-time horizon, and therefore can handle the risk of not being able to offload the asset easily.
Examples of illiquid assets are penny stocks, micro-cap stocks, and in some cases a normally liquid asset can become illiquid if market demand dries up quickly. An example would be Mortgage-backed securities (MBS) around the 2008 financial crisis. Before 2007 they were very liquid securities, but during the crisis the market for them became highly illiquid.
How do I allocate my assets in retirement?
What is a Liquidity Ratio?
What if I Want to Retire Abroad?
Retiring abroad requires additional planning to account for visa requirements and currency exchange factors
What is the Investment Advisor Registration Depository (IARD)?
The IARD system is maintained by FINRA, and keeps track of all adviser registrations, which states they are licensed in
What is an Investment Club?
An investment club is a group that organizes itself for the purpose of pooling dollars and participating in the market
What is the Falling Pennant (Bearish) Pattern?
The Falling Pennant (or Bearish Pennant) pattern looks like a pennant turned upside down (the mast points up)
What is Unlevered Beta?
Unlevered beta is a measurement of the Beta of a company when the effects of debt (leverage) are removed
What is the Federal Open Market Committee?
The Federal Open Market Committee (FOMC) is the monetary policy-making body of the Federal Reserve System
What Should I Do With a Lump-Sum Distribution From My Pension Plan?
We encourage you to be responsible and keep the future in mind. It's very easy to spend a lump sum right away
What is MSCI?
MSCI Inc is a company that is best known for its global indices. MSCI also provides research and pricing capabilities
What does 'short covering' mean?
Covering a short position means to acquiring the securities which were sold short, and returning them to the broker
What is a naked call?
A naked call is a type of option contract where the seller of a call does not own the underlying security