Inflation risk is the risk an investor takes on when holding cash or investing in an asset which is not linked to inflation. The risk is that the cash value will be reduced by inflation....
Inflation is the term used in economics to describe the rate at which the price of a representative basket of goods is increasing. Some inflation is good, and central banks attempt to achieve a consis...
An index is a measure of an economy and in financial terms, it is a synthetic (imaginary) portfolio which aims to represent a specific market. As this is just a benchmark and aims to only represent th...
An Income Statement is one of the three financial statements that are used to value a company and to show inflows and outflows of value. The Income Statement lists all operational costs of the busines...
In the money is a trading term referring to the value of options. If an option is said to be 'in the money', then it has value. In the money does not mean you have made a profit yet because ...
A dividend is a payment by a company to its shareholders representing a portion of earnings. The board of directors of the firm determines the amount paid in a dividend.In order to calculate a dividen...
Day trading is a trading strategy which revolves around the opening and closing positions within a single day. Day trading usually requires large amounts of leverage and ...
Microsoft is a bluechip stock with a solid business model. The stock symbol is MSFT and it’s currently trading at $149.97. The company has a lot of cash in the bank and its positioned to retur...
Collateral Value is the market value of anything used as collateral to support a loan. This can create issues with margin requirements; if the asset begins to lose value the borrower would need to sup...
While quite a bit of time and research goes into selecting stocks, it is often hard to know when to pull out especially for first time investors. The good news is that if you have chosen your stocks c...