The concept of a "good price per share" is subjective and can vary depending on an individual investor's goals and risk tolerance. Generally speaking, a good price per share is one that provides a reasonable balance between potential returns and...
Stocks in the S&P and other market-cap-weighted indexes can overprice, meaning they rise above their fundamentals. Inflated index prices occur when a stock has a high weighting in an index but is overvalued. An increasing market cap doesn't...
Classified stocks are shares of a company that are categorized into different classes, often denoted as Class A, Class B, and so on. These classifications allow companies to assign varying rights and privileges to different groups of shareholders....
Several studies have shown that stocks outperform all other asset classes over time. Stock returns are capital gains and dividends.
Trailing stops are a useful tool for a variety of trading strategies, but they are particularly well-suited to trend-following strategies that seek to capitalize on the momentum of a particular asset. For example, a trader might use a trailing stop...
Leading indicators play a pivotal role in assessing the overall health and stability of an economy by providing valuable insights into future economic trends and potential shifts in economic activity. These indicators are forward-looking metrics that...
A recovery or bull market is the inverse of a recession. This was seen in the bull market that began in 2009, signaling the end of the financial crisis and resulting in growth that saw the S& P 500 rise from 1,000 in June 2009 to 3,000 and rising...
A tick in financial markets measures the smallest possible price fluctuation for any given asset. One tick is worth a certain amount of money, which varies depending on the asset being traded (the tick size or tick value).
The ASX 200 does not represent the entire stock market, but it comes close. This is because the index accounts for approximately 80% of the total value of the Australian share market. As a result, it is frequently used as an indicator of the overall...
The liquidity level of hybrid stocks in the market tends to be lower than that of common stocks. Hybrid stocks, such as preferred shares and convertible bonds, often attract a more niche group of investors, which can reduce their trading frequency....