- How to Buy Netflix Stock
The FAANG stocks are a set of five high-value technology stocks. Together they make up nearly a fifth of the S&P 500’s total value. The “N” in FAANG stands for Netflix. One of the first major tech companies, Netflix arguably invented and defined the streaming era. This has made it a highly successful company and, in the… read more…
- What Is a Tax-Deferred Investment Account?
In a tax-deferred investment account the dividends, interest and capital gains are not taxed until money is withdrawn. These kinds of investments are attractive to people whose earnings or net worth put them in a high tax bracket. They often expect they will be in a lower tax bracket when they retire. But people in… read more…
- In the Money vs. Out of the Money: What Is the Difference?
When trading options, it’s important to understand the difference between in the money vs. out of the money. In simple terms, this is a way to measure an option’s intrinsic value, relative to the underlying asset’s current price. Knowing the difference between the two and when an option is in the money or out of… read more…
- What Hedge Fund Analysts Do for Investments
Every investment class needs someone to manage it. From the market makers and clearing houses that ensure stock trading to the bankers who move currencies around the world, markets are not natural phenomena. They require management. Perhaps nowhere is that more true than in funds. A hedge fund, like similarly structured mutual funds and exchanged-traded funds… read more…
- Why Market Sell-Offs Happen and How to Respond
A market sell-off happens when traders make a lot of sales very quickly. Sometimes a sell-off, which is a particularly aggressive form of a bear market, can encompass an entire market. Other times it may focus on specific industries or even individual assets. It isn’t always a bad thing when market sell-offs occur. They act as a… read more…
- How to Buy Coinbase Stock
Coinbase has taken cryptocurrency legitimate. At least, that’s the position of many in the cryptocurrency community who see the company’s IPO as proof that digital assets have arrived as mainstream investment products. Investors are excited about crypto, even if many don’t quite know what it is. Regulators haven’t made up their minds about how to treat… read more…
- How to Invest With Averaging Down
When a stock you own declines in value, you may be wondering what to do next. You can sell and accept the loss, do nothing and hope the stock’s value climbs again or buy additional shares while the price is low. This third strategy, known as averaging down, could allow you to increase your position… read more…
- Beginner’s Guide to Art Investment
Most people are familiar with traditional investment options like stocks, bonds and real estate. Some investors may be looking for ways to diversify their portfolio, though. One way to do that is by putting money into what is sometimes called… read more…
- Absolute Return Definition
When comparing investments, returns are one of the metrics you might zero in on. But there are different ways to gauge an investment’s performance. Absolute return measures an investment’s returns over a set time period. When choosing where to invest… read more…
- How to Buy Stocks Online Without a Broker
Investors have traditionally used professional brokers to manage their investment portfolios, but there are also a few viable avenues you can follow to manage it solo. If you feel that it’s time that you took control of your investment portfolio… read more…
- SoFi vs. Acorns: Which Is Better?
SoFi and Acorns are robo-advisors, meaning they digitally manage your investments or offer online advising. The two services target digitally native investors and cater to hands-off traders who prefer a passive investment strategy. Both offer investors the opportunity to start building… read more…
- How to Invest in Oil Markets
Oil prices have had a remarkable year. Historically volatile, like most commodities, oil prices tumbled during the pandemic to the point where they dipped into negative territory, meaning it cost more to store a barrel of oil than the product… read more…
- How Does the Fama-French 3 Factor Model Work?
The Fama-French Three Factor model is a formula for calculating the rate of return on a given asset. Like many (if not most) such models, it offers an estimated value based on market factors at large. In this case, investors… read more…
- How Does Securitization Work?
You have probably heard of securitization. It’s a way of turning non-financial assets into liquid securities that investors can buy and sell. Despite its role in the market crash of 2008 and subsequent Great Recession, the process of securitization is not… read more…
- What Is a Joint-Stock Company?
A joint-stock company is a company owned by several, generally private, investors. They’re an in-between creation, held more closely than a public company but more widely traded than a partnership. While largely, if not completely, replaced by modern corporate structures, the… read more…
- What Is a PIPE Investment?
When a company needs to raise capital, one of the ways it can do that is through a PIPE investment. This type of offering allows investors to purchase a certain number of restricted shares of stock from the company at… read more…
- What Is an NFT and How Much Is It Worth?
When a new investment trend emerges, you may wonder what all the fuss is about. It’s happened several times with each new variation of cryptocurrency, and NFTs are set to be the next big thing among investors who are interested… read more…
- SoFi vs Robinhood
Online investing has become increasingly popular, and with the growing appeal comes new pools of traders who want to begin building their own investment portfolios. Finding the right broker is essential to starting your investment journey. However, choosing between all… read more…
- What Is the Smart Money Index (SMI)?
The stock market can be a volatile setting where each investor’s success depends on both strategy and their tactics. In addition, each investor must create a balance between minimizing risk and maximizing returns. Savvy investors know how to navigate fluctuating prices and follow the market’s patterns. They rely on objective data to help them make… read more…
- What Is a Spread Trade?
A spread trade involves buying a security and selling another identical or related security as part of one simultaneous transaction to benefit from market imbalances. Though complex and not familiar to the average retail investor, spread trades reduce investment risk… read more…
- Why and How Investors Use Level 2 Market Data
Some of the more advanced trading platforms offer investors a service known as “Level 2 market data.” This usually comes as a premium feature, available for an additional price to investors who want it. If you’re a day trader or… read more…
- Investing Tips: Iron Condor vs. Iron Butterfly
Iron condors and iron butterflies are two widely used options trading strategies that share many similarities but also have distinct differences. Both involve selling short positions to capitalize on low implied volatility while using long positions to limit potential losses. The key difference lies in their profit structures. Iron condors offer a wider range of… read more…
- How Do Investors Use Protective Puts?
A protective put might be the closest you can come to having your cake and eating it too, at least as far as finance is concerned. It is a strategy based on the elective nature of options contracts, in which the investor buys both a put-position options contract and a long position in the underlying… read more…
- How Do Iron Butterfly Options Trades Work?
The iron butterfly options trading strategy aims to profit investors during periods of low volatility. Also known as the “short iron butterfly” or the “iron fly,” the strategy makes its money off price stability. As an investor, you open several… read more…
- What Is a Quant Hedge Fund?
A quant hedge fund is a pooled investment vehicle that uses quantitative analysis to select securities. This means that the fund relies on research and mathematical and statistical modeling to predict how an investment will perform. While investing in hedge funds… read more…