Stock Trading News

Apple is one of the most popular and well-known technology companies in the world. Founded in 1976, Apple has since become a household name thanks to its innovative products and services. In recent years, however, Apple has come under increased pressure from competitors such as Samsung and Microsoft. As a result, it is important to […]

The Three Main Geographical Spheres to Invest Your Money Broadly speaking, you have three main places to invest your money: 1) The three main reserve currency areas – US, European Union (can also include the UK), and Japan 2) China and maturing Asia (i.e., South Korea) 3) Emerging markets 1) Main reserve currency countries The […]

What Are War Bonds? War bonds are a type of debt security issued by the government to finance military operations and other spending during times of conflict. They are typically sold to investors at a discount, with the promise that they will be redeemed for full face value when the bonds mature. War bonds are […]

What Is Qualified Small Business Stock (QSBS)? Qualified small business stock (QSBS) is a designation given to certain stocks of small businesses that qualify for special tax treatment. When you sell or exchange QSBS, you may be able to exclude all or part of the gain from your taxable income. To qualify for QSBS status, […]

What Is the Annual Percentage Yield (APY)? The annual percentage yield (APY) is a measure of how much interest you earn on an investment over the course of a year. It takes into account the interest rate and any compounding that may occur during the year. The APY is important because it allows you to […]

What Is Sensitivity Analysis? Sensitivity analysis is the process of changing input variables to determine how it will change the output variable. For example, if you are doing a discounted cash flow analysis on a certain stock, you might want to look at how changing interest rates would influence the stock price or how changing […]

What Is Reflexivity? Reflexivity is a trading concept popularized by George Soros. It posits that there is a two-way relationship between price and underlying fundamentals. This means that price movements can influence the underlying fundamentals, which in turn can influence prices. This theory is based on the idea that people base their decisions on their […]

Odd Lot An odd lot is an order for a security that is less than the standard unit of trading for that particular security. An odd lot trade may be more expensive than a trade involving a standard lot, due to the higher transaction costs associated with odd lot trades. An odd lot order may […]

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 […]