Articles on Stock markets
News, Research and Analysis
What is Intrinsic Value?
Intrinsic Value is the value of a security which is “built into it.” Both options and stocks have it, but it is different for each. Options and stocks have intrinsic value.
For options, the intrinsic value is easy to compute, if the option is in-the-money. It is the difference between the strike price of the option and the market price of the underlying security. If an option is out-of-the-money it has no intrinsic value.
For stocks, there is no simple way to compute intrinsic value, and different analysts and investors have a different idea of how to define it. Methods that can be used include Discounted Cash Flow, P/E ratio, EV/EBITDA, and book value. The book value or breakup value of a business can be seen as the least possible intrinsic value of a stock, but most value investors will use other metrics.
SEP and SIMPLE IRAs
What is the Difference Between Cash-Balance Plans and Other Retirement Plans?
Cash Balance plans are Defined Benefit plans, but are not much like Pensions, or other types of retirement plans
How to use Stochastics in trading
Stochastics is a methodology for technical analysis as following the “speed or the momentum of the price”
What is Paid-Up Capital?
Paid-up capital is the money (‘capital’) collected by a company from issuing shares of their stock
What is a Reverse Mortgage?
In a reverse mortgage, instead of paying to for your home, you’re getting paid for your home. It is considered a loan
What are foreign currency effects?
Companies with significant operations or sales abroad will be affected by changes in foreign currency exchange rates
What is Stop-Loss Order?
A stop-loss order will name a price below (above) the market price on a long (short) position, where a sell order will trigger
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 are Blend Mutual Funds?
Blend mutual funds offer exposure to both growth stocks and value stocks. Blend mutual funds seek to capture the...
What is a bear put spread?
A bear put spread involves the use of two puts, one sold and one bought, at different strike prices