Stock Trading News

Paradigm shifts occur when markets over-extrapolate one set of conditions into the future despite those conditions being unsustainable. The last decade and even the last 40 years are what traders and other market participants think will probably hold. However, that could easily be wrong because we’re now in a totally different world. If you take […]

The 60/40 portfolio pertains to an asset allocation that is 60 percent stocks and 40 percent bonds. The general thinking is that the 60 percent in stocks gives the portfolio a high enough risk asset allocation such that it can generate quality returns while the 40 percent in bonds gives diversification and a capital preservation […]

In this article, we cover trading and investing in the metaverse. But first, what is the metaverse? The metaverse is a space where users of a certain platform can interact in a computer-generated virtual-reality environment with other users. The metaverse is making a big push as the next big tech trend. Facebook even went so […]

What Is Preferred Stock? Preferred stock is a type of equity that typically pays fixed dividends and has priority over common stock in the event of a liquidation. Preferred shares generally have greater voting rights than common shares, but Common Stockholders elect the Board of Directors. Preferred Stock vs Common Stock – Key Differences Preferred […]

Risk parity is an investment strategy that aims to balance risk across asset classes, rather than allocating more capital to traditionally “safer” investments like bonds. The goal is to create a portfolio with consistent returns, regardless of market conditions. It’s also sometimes called balanced beta. It does not generally involve any tactical trading outside rebalancing to […]

US-headquartered trading broker, Robinhood, is reducing its headcount by nearly a quarter in the face of an uncertain economic landscape and falling revenues. This follows the 9 percent cut it made to its workforce in April. Reduced Trading Activity Robinhood was one of many trading platforms that did well in 2020 and 2021. Its commission-free […]

What Is Gross Margin? Gross margin is the difference between a product’s selling price and its cost of production. Gross margin is expressed as a percentage of the selling price. For example, if a company sells a product for $100 and it costs the company $90 to produce the product, the gross profit would be […]

What is Working Capital? Working capital (WC), also known as net working capital (NWC), refers to the money that a company has available to meet its short-term obligations. It is a key metric that investors use to assess a company’s financial health and its ability to continue operating and growing. Working capital is calculated by […]

An inverted yield curve is an interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This is considered a negative yield curve, because it is “inverted” from the typical yield curve relationship, in which longer-term rates are higher than shorter-term rates. What Happens […]

Despite being one of the oldest and most well-known indexes in the world, there are still some misconceptions about the S&P 500. Below, we dispel some of the most common myths about this popular market benchmark. 1) The S&P 500 is only made up of US companies A company must be based in the US […]