Articles on Stock markets
News, Research and Analysis
What Does Market Capitalization Mean?
Market Capitalization refers to the total ‘market-size’ of a company, calculated by the number of shares outstanding multiplied by the stock price.
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.
What is a Price-Weighted Index?
What is Weighted Average Market Capitalization?
What is an Earnings Call?
An earnings call is when a company opens up a teleconference line or webcast that the public can join to hear the...
What is the Symmetrical Triangle Top (Bullish) Pattern?
The Symmetrical Triangle Top pattern forms when a stock price fails to retest a high or low and forms two trend lines
What is the Head-and-Shoulders Bottom (Bullish) Pattern?
The Head-and-Shoulders Bottom pattern is formed when a currency pair price creates a center trough and two inverted shoulders
What is the Rectangle Top (Bearish) Pattern?
The Rectangle Top pattern forms when a currency pair's price is stuck in a rangebound motion, between support and resistance
What is Adjusted Cost Basis?
Adjusted Cost Basis (ABC) is the value of an item for tax purposes, adjusted for depreciation and expenditures
What is a Capital Account?
The Capital Account in a company is where paid-in capital, retained earnings, and treasury stock is accounted for
What is a market-with-protection order?
A market-with-protection order allows investors to hedge against the change that prices will move unexpectedly before...
What does delta mean?
Delta is a multiple which can quickly tell an options investor how much the price of their option will change per share in trading
What is the black swan theory?
The Black Swan Theory serves as a reminder to investors that unpredictable events can radically change the markets
What is the adaptive market hypothesis?
The Adaptive Market Hypothesis uses theories of behavioral economics to update the aging Efficient Market Hypothesis