The Federal Reserve, commonly referred to as the "Fed," is the central bank of the United States. Its primary role is to promote a stable and healthy economy by implementing monetary policy, supervising and regulating banks and other financial...
Bond swap is a financial transaction where an investor exchanges an existing bond for a different bond issued by the same or a different company. This can be done for various reasons, including to obtain a better yield, to change the maturity date,...
Companies offer rights issues as a way to raise capital. A rights issue allows existing shareholders to purchase additional shares at a discounted price, proportionate to their current holdings. This gives them the right to purchase new shares before...
The market price per share of a stock is influenced by a variety of factors, including company financial performance, market sentiment, supply and demand, interest rates, and overall economic conditions. Positive news such as earnings growth, new...
Behavioral finance is a field of study that explores the impact of psychological, emotional, and social factors on financial decision-making. It seeks to understand why individuals deviate from rational decision-making and how these biases affect...
Interest rates play a significant role in determining stock prices. When interest rates are low, it becomes less expensive for companies to borrow money, which can lead to increased investment in growth and expansion. This can boost stock prices as...
All investments involve some risk, but microcaps and nanocaps are among the riskiest. Many of these companies are still in the startup phase. It is common for them to have minimal assets, products that are still in the development stage, no profits,...
Alternative Trading Systems (ATSs) are electronic trading platforms that connect buyers and sellers of securities that do not take place on traditional stock exchanges. ATSs are typically operated by broker-dealers and are subject to Securities and...
A stock is a piece of ownership in a company that you can purchase. A bond is essentially a loan to a company. Returns on both of these investments are contingent on the company remaining in operation. If a company declares bankruptcy and liquidates...
A private limited company is a company that is privately owned by a group of people. The member's liability is limited to the number of shares they own in the company. However, the shares of a private limited company cannot be traded publicly.