Stock Trading News

Your personal savings rate and consistency in saving is the number one reason why people succeed in their trading and investing endeavors. If you don’t save anything, you won’t have anything to work with. To show why, let’s look at a simple example of someone routinely, without fail, putting $1,000 into the market each month, […]

Eurodollars are deposits of US dollars in foreign banks, or in the foreign branches of American banks. The eurodollar market is the global market for these deposits. There is no one eurodollar market. Instead, eurodollars are traded in a number of different markets, including London, Frankfurt, and Zurich. In addition, eurodollars can be traded in […]

Equity swaps are derivative contracts that allow two parties to trade equity exposure in a way that suits their needs. The most common type of equity swap is the equity total return swap, which allows one party to receive the total return from an equity index or basket of stocks, while the other party pays […]

Much has been made of the idea that value investing is badly lagging other trading strategies. When liquidity is abundant, as it mostly has been since 2009 due to the fallout from the financial crisis, long-duration growth stocks tend to outperform value. Nonethless, AQR’s value gauge is reporting the highest value spread since the dot-com […]

Financial markets are a mix of different participants, who have different sizes and different motivations. This is important to get at because the prices of all assets are just the total amount spent on them (with either money or credit) divided by their quantity. All markets and their pricing are just mixes of these participants. […]

In this article, we’re going to cover more than 25 of the most common types of equity offerings and security types. What are equity offerings? An equity offering is when a company sells its shares in the open market. This can be done through an equity dealer or on a stock exchange. There are many […]

Corporate restructuring, corporate transactions, and other catalyst-based events in markets are often referred to as special situations. There are many traders, investors, and other market participants who base a portion or all of their strategy on special situations. We’ll cover the various types of special situations, which popularly include spin-offs and divestitures, share repurchases, security issuance or repurchase, […]

A poison pill is a strategy employed by a company to make itself less attractive to a hostile takeover bid. The poison pill is usually in the form of poison pills are usually in the form of increased debt or dilutive shares. The poison pill is designed to make the potential acquirer think twice about […]

Exchange-traded notes (ETNs) are unsecured, senior debt securities issued by an underwriting bank and traded on a major exchange. ETNs represent a promise by the issuing institution to pay the note holder a cash amount equal to the performance of a specified market index, minus fees and expenses. ETNs are similar to other debt securities, […]

Credit derivatives are a type of financial contract that allow investors to hedge or speculate on credit risks. They came into popularity in the early 1990s in the aftermath of a slow-moving global credit crisis that heavily hit commercial real estate (and especially Japan’s economy) and the savings and loan (S&L) industry. Credit derivatives can […]