Stock Trading News
GOOG vs. GOOGL – Which One Should You Buy?Alphabet (aka Google) has two classes of shares: GOOGL (Class A) and GOOG (Class C) Difference between GOOG and GOOGL GOOG shares have no voting rights while GOOGL shares do. And the GOOG vs GOOGL debate usually comes down to whether you want to have a say in Google’s corporate decision-making commensurate with your ownership […]
Money Weighted Return vs. Time Weighted Return (MWR vs. TWR)Money weighted return and time weighted return are two concepts in finance that are often confused. Though both are used to measure returns, they differ in how they account for the timing of cash flows. In this article, we’ll look at how MWR and TWR are different and how they’re calculated. Money weighted return vs. […]
Nash Equilibrium – Influence in Trading and InvestingWhat Is a Nash Equilibrium? A Nash equilibrium is a situation in which no player has an incentive to change his or her strategy. In other words, each player is doing the best he or she can given the strategies of the other players. Nash equilibria are important because they provide a way to predict […]
Do Index Funds Pay Dividends?Do you get dividends from index funds? Let’s take a look. Do Index Funds Pay Dividends? Yes, index funds do pay dividends. Given securities within them issue dividends, so too do the index funds themselves. However, the dividends paid out by index funds will vary based on the make-up of the fund. For example, an […]
Why You Should Focus on Real Returns, not Nominal ReturnsOver time, real returns (i.e., inflation-adjusted returns) are what matter for your portfolio, not nominal returns. The wealth that we have is not how much money we have. It’s the buying power of that money. For example, if the inflation rate is 5 percent and an asset you hold simply stayed steady all things considered, […]
What Are Market Bubbles? [And How to Identify Them]We’re in a zero interest rate world, which is the most important theme currently governing financial markets and has big implications for portfolio construction. By extension, this means we’re in a period where the forward returns of financial assets will be low across the board. While this support is necessary, it makes markets susceptible to […]
Asset allocation vs. Diversification – Exploring the DifferenceAsset allocation and diversification might be related concepts in finance, trading, and investing, but there are slightly different. Asset allocation refers to the process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The asset allocation process takes into account the investor’s goals, risk tolerance, and investment horizon. Diversification […]
How Would a US Dollar Devaluation Affect Assets?A US dollar devaluation would have an impact on movements in other asset classes. Currency volatility picked up with more inflation risk in 2022. Post-2008, we’ve mostly been in a low interest rate world. However, when interest rates become so low to the point where they can’t be lowered any more, and […]
Types of Assets on a Balance SheetAn asset is a resource that is owned or controlled by an individual, company, or government with the expectation that it will provide economic benefit. Companies generate revenue from their assets, so they represent the foundation of the valuations of the company that underlies stock prices. Assets can also typically be exchanged or sold. Common […]
SPAC Meaning: What Are ‘Blank Check’ Companies?What does the SPAC acronym mean? SPAC is short for a Special Purpose Acquisition Company, also known as a “blank check” company. Here we explain the analytics and meaning of SPAC in investing terms. A SPAC is essentially large pool of cash, which is listed on a public exchange with the sole purpose of completing […]
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