Pink Sheet stocks, traded over-the-counter (OTC) rather than on major exchanges, carry significant risks that make them highly speculative. Here are the biggest dangers investors face:
The distinctions between inflation and stagflation are subtle but significant. Inflation is the gradual rise in the prices of goods and services in an economy. Low and consistent inflation has historically been associated with low unemployment,...
A hammer candlestick is a popular bullish reversal pattern in technical analysis. It typically appears at the end of a downtrend and signals potential exhaustion of selling pressure and a possible upward reversal.
American Depositary Receipts (ADRs) are a financial instrument that allows foreign companies to list their shares on U.S. stock exchanges. ADRs are issued by U.S. banks, who purchase shares of the foreign company and hold them in custody. Each ADR...
When the market opens at 9:30 a.m., the opening price is the first price a stock trades at, and the closing price is the last price it trades at when the market closes at 4:00 p.m.
Relative strength (RS) helps identify stocks outperforming the market or their sector. Here are some notable examples:
Net assets, also known as net worth or equity, refer to the value of an individual, organization, or business entity's total assets minus its total liabilities. It represents the residual interest or the amount that would remain if all debts were...
In financial markets, small changes in prices or rates can have a significant impact, which is why basis points are used to explain changes in percentages.
Sellers who sell equity shares listed on a stock exchange within 12 months of purchase may realize a short-term capital gain (STCG) or suffer a short-term capital loss (STCL). A short-term capital gain occurs when shares are sold at a higher price...
When a customer deposits money in a bank, the bank must keep a portion of it (the reserve requirement), but the rest is free to lend to other customers. Customers can spend the money, and it will eventually be deposited in another bank.