- 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…
- How to Buy AMC Stock
AMC Theatres has been around for a century. But a high-profile short squeeze coordinated on Reddit sent the company’s stock price soaring in early 2021. After a brief pause shares rocketed up again in late May, with the share price popping nearly 200% by early June. The flurry of activity created a newfound buzz for… read more…
- How to Buy AirBnB Stock
AirBnb is a popular short-term rental technology company that created a lot of buzz when it went public in December 2020. Founded in 2008 by Brian Chesky, Nathan Blecharczyk and Joe Gebbia, the company has seen its stock price jump over 20% since its initial public offering (IPO), despite the coronavirus pandemic’s negative impact on… read more…
- How to Buy GME Stock
In early 2021, the Texas-based video game retailer GameStop dominated the financial news when its stock price skyrocketed amid a buying frenzy. GameStop (GME), which trades on the New York Stock Exchange, has been marked by its dramatic volatility. The stock… read more…
- Ally Invest vs. Robinhood: Which Is Better?
One of the main draws to any online broker these days is the trait “low-cost.” Two key figures who currently offer zero-dollar commission trading are Ally Invest and Robinhood. However, both services are structured in very different ways. Ally Invest… read more…
- Key Differences Between Trading vs. Investing
Trading stocks and investing in other securities can help with building a well-rounded portfolio. While the two sound similar, there’s a difference in trading and investing when it comes to the speed and reliability of reaching your financial goals. If you’re unsure whether you’re a trader or an investor, or what the distinction even means,… read more…
- Understanding How Sweep Accounts Work
When managing your personal finances, it’s important to make the best use of every dollar. Setting up a sweep account at your bank or online brokerage is one way to do it. Sweep accounts allow you to earn interest on… read more…