Capital gains refer to the profit made from selling an asset, such as shares in a company, for more than its original purchase price. For shareholders, capital gains occur when the value of the shares they own increases, and they sell those shares at...

Stock dividends can lead to dilution of the value of existing shares, but it's important to understand how this works. When a company issues a stock dividend, it distributes additional shares to its existing shareholders instead of paying out cash....

The primary function of a stock market is to provide a platform for the buying and selling of securities, primarily stocks or shares, issued by publicly traded companies. It serves as a marketplace where investors, both individual and institutional,...

Assume you believe Tesla's earnings will have a significant impact on its stock price, and you buy call and put options with the same strike price. Both are valid for 24 hours following the earnings announcement.

Nominal GDP and Real GDP are two ways of measuring a country’s economic output, but they differ in how they account for inflation.

A speculative stock is one in which a trader speculates. The fundamentals of the stock show no obvious strength or sustainable business model, causing it to be viewed as very risky and trade at a comparatively low price, though the trader is hopeful...

Unit Investment Trusts (UITs) are investment vehicles that allow individuals to invest in a diversified portfolio of securities. UITs are similar to mutual funds, but with some key differences. A UIT is created when a sponsor purchases a fixed...

The price-to-book (P/B) ratio is a crucial metric in value investing, offering insights into whether a stock is undervalued or overvalued compared to its book value. The book value represents a company's net asset value, calculated as total assets...

The world GDP is the sum total of the gross national income for every country in the world. In order to calculate a country's gross national coverage income, it is necessary to measure its GDP. These will be added to the value of the income from...

Investing in large-cap stocks offers several advantages for investors. Firstly, large-cap companies are typically well-established and have a proven track record of stability and longevity. Their strong market presence and brand recognition provide a...