How to Invest in Gold Stocks? The Smart Investor Guide
How to Protect Your 401(k) in a Market Downturn
Table Of Content How a Recession Impacts 401(k) Investments During a recession, your 401(k) can face several financial and emotional stress points. Because 401(k)s are typically invested in stocks, bonds, and mutual funds, market downturns can cause the value of your retirement savings to drop, sometimes significantly. Here’s how different factors play out during a […]
How to Diversify Your Investment Portfolio for Stability and Growth
Table Of Content What Is Portfolio Diversification? Portfolio diversification is the practice of spreading your investments across different asset classes, industries, or geographic regions in order to reduce overall risk. For example, instead of putting all your money into tech stocks, you might invest in a mix of stocks, bonds, real estate, and even commodities […]
What Happens to My Shares If a Company Goes Private?
Table Of Content What Does It Mean When a Company Goes Private? When a company goes private, it means its shares are no longer traded on public stock exchanges like the NYSE or NASDAQ. This usually happens when a group of investors—often the company’s management, private equity firms, or a combination—buys out all publicly held […]
What Is a Reverse Stock Split and How Does It Affect Investors?
Table Of Content What Is a Reverse Stock Split and How Does It Work? A reverse stock split reduces the number of a company’s outstanding shares while increasing the price per share proportionally. This financial maneuver does not change the company’s total market value, but it restructures how shares are held and traded. For example, […]
What Is Options Trading? A Beginner’s Guide to Calls and Puts
Table Of Content What Is Options Trading and How Does It Work? Options trading involves buying and selling contracts that give investors the right, but not the obligation, to buy or sell an underlying asset, such as a stock, at a predetermined price within a specific timeframe. These contracts are known as options, and they […]
What Is P/E Ratio in Stocks? Analysis & Calculation
Table Of Content What Is the P/E Ratio and How Is It Calculated? The price-to-earnings (P/E) ratio is a widely used valuation metric that helps investors assess how much they are paying for a company’s earnings. It compares a company’s stock price to its earnings per share (EPS), offering a snapshot of whether a stock […]
Debt-to-Equity Ratio Explained: What’s a Healthy Level?
Table Of Content What Is the Debt-to-Equity Ratio? The debt-to-equity (D/E) ratio is a financial metric that compares a company’s total liabilities to its shareholder equity. It shows how much debt a company uses to finance its operations relative to its own capital. This ratio matters because it helps investors and lenders assess a firm’s […]
How the Ex-Dividend Date Affects Stock Prices and Investors
Table Of Content What Is the Ex-Dividend Date? The ex-dividend date is a key milestone for investors interested in receiving dividend payments. It’s the date when a stock begins trading without the value of its upcoming dividend. To receive the dividend, investors must own the stock before this date. Here’s how it works: Record Date […]
How Long Can You Hold a Short Position?
Table Of Content Is There a Time Limit on Short Selling a Stock? Technically, there is no fixed time limit for how long you can hold a short position. You can continue shorting a stock as long as your broker allows it and the stock is available to borrow. However, this doesn’t mean you can […]
How to Borrow Against Stocks: Margin Loans and Securities Lending
Table Of Content When You Can Borrow Against Stocks? You can borrow against your stock portfolio when your holdings meet certain conditions — typically involving stability, liquidity, and account type: When You Hold Marginable Securities in a Brokerage Account In order to borrow, your stocks must be marginable — meaning they’re approved by your broker […]
Mastering the Markets: How to Learn Trading from Scratch
Table Of Content Learning to trade can open up new financial opportunities, but it requires more than luck or guessing. It involves understanding markets, managing risk, and building a repeatable strategy. When I first started, I made plenty of mistakes—but each one taught me something. In this guide, I’ll share the exact tools, lessons, and […]