Articles on Stock markets
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What were the Biggest Insider Trading Scandals?
In 2007, Qwest Communications CEO Joseph Nacchio was convicted of making over $50 million dollars through illegal trades.
Essentially, Nacchio knew that the company wasn’t doing well, while telling the public that it was on track to pursue highly exaggerated revenue gains. He capitalized on the inflated stock, and was, of course, caught and found guilty. He’s currently serving a six year prison sentence.
Another case, which involved a much smaller amount of money but was more widely publicized, involved businesswoman and magazine/television personality Martha Stewart.
In 2001, she suddenly dumped a large amount of ImClone stock she owned in her portfolio, and the next day ImClone fell by 16%. As it turned out, the CEO of ImClone, Samuel Waksal, was her good friend, and she received the insider information through her broker, Peter Bacanovic.
In this case, insider trading was used to avoid losing money, versus securing big gains. All three served prison sentences and paid various fines, but have since been released.
What is Insider Trading?
What are Some of the Biggest Bankruptcies in Recent History?
What is a Variable Annuity?
Variable annuities provide downside protection, while also providing market exposure that may give the upside potential
What is a Warrant?
A warrant is an agreement giving the holder the right to buy (or sell) a certain number of shares of a company
What is an Asset-Backed Security?
Asset-backed securities are bonds or notes that come in several forms, but they typically use the cash flows from...
What is Retained Earnings?
A company may reinvest earnings instead of paying out dividends. They do not necessarily sit in a retained earnings account
What is a hedge fund?
Hedge funds are private investment groups that attract high net worth individuals and use riskier investment strategies
Should I Trust an Article Such as “Five Best Ways To Invest For Income?”
Generally speaking, there is no such thing as the “best ways” to invest. However, such articles can help you strategize
What is a Leveraged Buyout?
A leveraged buyout is a type of acquisition in which the acquiring company (or a group of investors) uses a significant amount of debt to finance the purchase of a company.
What is a Corporate Bond?
A corporate bond is a debt security issued by public or private companies to raise capital for various purposes.
What is an Inverted Yield Curve?
An inverted yield curve occurs when long-term treasuries have a lower yield than short-term treasuries
What is Accounting Profit?
Profit is a term that is synonymous with earnings and net income, it is basically what is left of revenue after expenses