Articles on Stock markets
News, Research and Analysis
What is Volatility?
Volatility is a measure of the variance, deviation, or movement of a stock.
Volatility is all the extra movement of a stock or other security over and above (and below) a line of averages. Put another way, it is a measure of how many changes in price, and by how much, a security experiences over an amount of time.
Computations of Standard Deviation and Variance are measures of the degree of volatility which exists in the movement of a stock. Volatility will also be measured relative to a benchmark index, and the degree to which a security adheres or deviates from the benchmark is called Beta. People will also trade on derivatives of the VIX, which is the volatility index of the S&P 500.
Increased volatility brings increased uncertainty, and times of volatility often cause investors to seek stability, but more active/speculative investors will be excited by the volatility, because price changes are where money is made, both by gains in long or short positions and derivatives, but also, in the case of advisors and brokers, by commissions and billable time. Volatility is not necessarily synonymous with risk, but it is a strongly correlated concept.
In options trading, implied volatility is a term used for the marketability and potential profitability that is priced into an option in which the underlying is experiencing volatility, and it represents a sentiment measure of the volatility expected going forward, and, of course, sentiment will often affect or even determine the actual prices and volatility of securities.
What is the security market line?
The Security Market Line (SML) is a visualization of the Capital Asset Pricing Model (CAPM) and shows thee relationship between risk and return in trading
What is the “Life with Period Certain” Option?
Discover what life with period certain option means at Tickeron. Relate it with the bearish flag pattern in trading for a holistic investment perspective. Get started now
Can I Rollover My 401(k) into an IRA?
Yes, in fact this is what most people do. This is a very popular choice. Because IRAs receive the same tax treatment
What is the commodity futures trading commission?
Understand the pivotal role of the Commodity Futures Trading Commission. Learn how it affects your trading decisions with Tickeron's comprehensive guides.
What is commodity pice risk?
Commodity price risk means that an agricultural or mining business might not be able to predict the revenue generated
What is IRS Publication 544 on Sales and Other Dispositions of Assets?
This guide is a reference for the tax implications of sales, transfers, repossession, and abandonment of property
What is Mortgage Suitability?
A suitability standard has been advocated by various consumer lobbying groups and legislators, but it does not exist
What is Bitcoin?
Bitcoin is a digital currency that is secured and maintained by a peer-to-peer network of millions of users online
What is a Good Financial Advisor?
A good financial advisor should care as much about your investments as you do, and be personable and knowledgeable