Investors should take care not to consider a company’s market capitalization as an accurate reflection of the company’s actual size by assets. Companies with very large market capitalizations can still operate with net losses, Twitter being an example.
There are generally four categories of market capitalization: mega cap, large cap, mid cap, and small cap. Mega caps are generally thought of as ‘boring’ stocks, generally with lower risk profiles and lower return potential. Small caps generally fall on the other end of the spectrum, with higher risk and higher reward profiles.
The Black Swan Theory serves as a reminder to investors that unpredictable events can radically change the markets
Delta is a multiple which can quickly tell an options investor how much the price of their option will change per share in trading
The Adaptive Market Hypothesis uses theories of behavioral economics to update the aging Efficient Market Hypothesis
Adjusted Cost Basis (ABC) is the value of an item for tax purposes, adjusted for depreciation and expenditures
The Capital Account in a company is where paid-in capital, retained earnings, and treasury stock is accounted for
A market-with-protection order allows investors to hedge against the change that prices will move unexpectedly before...
An earnings call is when a company opens up a teleconference line or webcast that the public can join to hear the...
The Head-and-Shoulders Bottom pattern is formed when a currency pair price creates a center trough and two inverted shoulders
The Rectangle Top pattern forms when a currency pair's price is stuck in a rangebound motion, between support and resistance
The Symmetrical Triangle Top pattern forms when a stock price fails to retest a high or low and forms two trend lines