Stock Trading News

Several companies have dual or multiple share classes. Here are some notable examples: GOOG vs. GOOGL Alphabet Inc. (formerly Google Inc.) has two publicly traded share classes. GOOG represents Class C shares (no voting rights), while GOOGL represents Class A shares (one vote per share). BRK.A vs. BRK.B Berkshire Hathaway Inc. has two share classes. […]

Before trading foreign equities denominated in a different currency, it’s important to understand that it’s not just the returns, but returns + the currency movement. For example, if the USD has a higher nominal interest rate than the JPY, it will have implications for the forward curve of the USD/JPY currency pair. So if a […]

We trade because we expect that it’ll earn us money. Except when you have a poor day, week, or month in the markets it seems like the markets are maybe the easiest way to lose money. Losing money in the markets teaches us expensive lessons on how to improve by doing things differently. One of […]

Comparable company analysis – also called “trading comps” or “comps” in finance lingo – is another business valuation method to choose from among discounted cash flow and precedent transactions modeling. (A leveraged buyout is also technically a valuation method as well but is more specialized toward private equity firms rather than investment banking.) It is […]

Inflation dynamics aren’t likely to hold the trends that were prevalent in the 2010s, which has implications for bonds and other types of assets.  Why inflation is important and the impact on the bond market To understand how inflation is relevant to the investor or trader we must first understand what inflation means and its […]

Companies buy back shares for a number of reasons. One key reason is to return value to shareholders. By reducing the number of shares outstanding, each remaining share becomes more valuable as earnings are spread over fewer shares. By reducing the amount of outstanding common stock, companies can improve their return on equity (ROE), making […]

In this article, we’re going to look at cases of countries in the 20th century where there were full wipeouts, and near-wipeouts, of financial wealth. This is based on 60/40 portfolios (i.e., 60 percent stocks, 40 percent government bonds) and based on real (inflation-adjusted returns). A 60/40 stock-bond mix is often taken as a fairly […]

Emerging technologies are those which are new and haven’t yet been widely adopted among the public. But these trends and new markets that will be developed out of them can lead to outsized gains for traders and investors. Emerging Tech and Trading Many traders believe the future will be a slightly modified version of the […]

The 3-fund portfolio – often called the Boglehead 3-fund portfolio after Vanguard’s late founder John C. Bogle – is a simple, low-cost portfolio that consists of just three index funds. The Boglehead 3-fund portfolio has become one of the most popular investment portfolios among DIY investors because it is easy to understand and implementation is […]

Mutual funds and ETFs are similar and different in various ways. Both of them are investment vehicles that pool money from various investors to purchase a set of investments. In this article, we explore those differences and similarities.   Mutual Fund vs. ETF – Key Takeaways Mutual funds are actively managed by professional fund managers […]