Articles on Stock markets
News, Research and Analysis
What is an Investment Center?
An investment center is an almost autonomous division of a company whose purpose is to generate returns on invested money.
Cost center and profit center are terms used for various kinds of business divisions when observed from a solely financial, instead of operational, standpoint. These categories help a business to identify and group its similar assets for evaluation. A cost center can be turned into a profit center if it manages to reduce costs enough to generate a profit.
An investment center is a part of the business which operates virtually autonomously under the direction of an investment manager. While cost and profit centers were only concerned with current cash-flow in terms of costs and revenues, the investment center is also evaluated in terms of initial capital investment, such that the manager’s primary objective is to generate return on investment (ROI).
Unlike retail investment managers, the managers at an investment center are only concerned with pleasing one client: the corporation to which they belong. They act in a fiduciary capacity to manage the assets of the company without having to get approval prior to taking action.
This is called having agency, and a corporation’s board of directors can endow a manager with authority and agency to permit them to act on the company’s behalf without having to ask permission before acting.
What is a straddle?
Straddles are options strategies that use both a call and put on the same underlying asset at the same strike price
How can I invest in hedge funds?
Some hedge funds will require investors to fit the Qualified Purchaser criteria, which requires a portfolio of $5 million
What are the pros and cons of hedge fund investing?
Hedge funds are sometimes the highest-earning investment vehicles, and sometimes they do that much worse than everything else
What is IRS Publication 505, Tax Withholding and Estimated Tax?
Publication 505 serves as a guide to make sure all goes smoothly for people and their withholding requirements
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 a Satoshi Cycle?
This term was coined quite recently, describing the relationship between bitcoin prices and Google searches for bitcoin
What is the Debt Ratio?
To calculate the debt ratio, one only needs to divide total liabilities (i.e. long-term and short-term) by total assets
What is buying power?
‘Buying Power’ is a term used to describe how much additional leverage you have given the excess equity in your account
Should I Trust the Opinions Expressed by Various Financial Analysts?
Studies suggest that it is not wise to put too much faith in any market analyst or commentator
Is there such a thing as the “January effect?”
The January Effect is a hypothesis which states that stocks will see their biggest monthly gains in January