What Is a Call Option? Mechanics, Strategies, and Profit Potential
Table Of Content What Is a Call Option and How Does It Work? A call option is a financial contract that gives the buyer the right, but not the obligation, to buy a specific stock (or other asset) at a predetermined price, known as the strike price, within a set period. Investors often buy call […]
What Is Capital Stock? Share Classes and Corporate Equity
Table Of Content What Is Capital Stock? Capital stock refers to the total shares of ownership a company is authorized to issue, as outlined in its corporate charter. This includes both common stock and preferred stock, which together represent the company’s equity financing. Unlike the number of shares actually issued and traded, capital stock is […]
What Happens to Your Shares When a Company Is Acquired?
Table Of Content How Mergers and Acquisitions Affect Stockholders When a company is bought, the impact on shareholders depends heavily on the terms of the acquisition. The acquiring firm may offer cash, stock, or a combination, and these outcomes can directly affect your investment strategy, taxes, and portfolio balance. Below are the most common scenarios […]
What Is a Put Option? How They Work and How to Trade Them
Table Of Content What Is a Put Option and How Does It Work? A put option is a financial contract that gives the holder the right—but not the obligation—to sell an asset at a set price (known as the strike price) before a specific expiration date. Investors typically buy put options when they expect the […]
How to Read a Stock Quote: Quick-Start Guide & Examples
Table Of Content What Is a Stock Quote and Why Is It Important? A stock quote is a snapshot of a company’s current trading activity on the stock market. It provides essential pricing and performance data that helps investors make real-time decisions. Pricing Transparency: A stock quote shows the current price of a stock, helping […]
Stock Splits Explained: What They Are and How They Work
Table Of Content What Is a Stock Split? A stock split occurs when a company increases its number of outstanding shares by issuing more shares to existing shareholders, while simultaneously reducing the share price proportionally. This move doesn’t affect the company’s overall market value—it simply divides the existing pie into more slices. For instance, in […]
What Are Small Cap Stocks? A Guide for Smart Investors
Table Of Content What Is a Small Cap Stock? A small cap stock refers to a company with a market capitalization typically between $300 million and $2 billion. These are often younger or regional companies that are still expanding their operations. Because they’re smaller in size, they may not have the stability or market dominance […]
How to Short a Stock: The Smart Investor Guide to Profiting from Declines
Table Of Content Short selling is basically betting that a stock is going to drop. Instead of buying a stock and hoping it goes up, you borrow shares from your broker and sell them right away. The plan? Wait for the price to fall, buy those same shares back for cheaper, return them to your […]
The 1929 Stock Market Crash: Causes, Effects, and Lessons
Table Of Content The stock market crash of 1929 marked the end of the Roaring Twenties and signaled the beginning of the Great Depression. Throughout the 1920s, the U.S. economy experienced rapid growth and a booming stock market, fueled by industrial expansion, consumer credit, and investor optimism. Many Americans believed the market could only go […]
When Should You Sell a Stock? Key Signals to Watch
Table Of Content While holding quality stocks for the long term can build wealth, there are times when selling is the smarter move. Whether it’s a shift in your personal goals, company fundamentals, or broader market conditions, knowing when to exit a stock can help protect your gains—and your portfolio. 1. Your Life Goals or […]
How to Invest in SpaceX: Can You Buy Stock?
Table Of Content How to Invest in SpaceX: Can You Buy Stock? As of , SpaceX remains a privately held company, meaning its stock is not available for public purchase on any stock exchange. This status restricts direct investment opportunities for individual investors. SpaceX has no immediate plans to go public, as the company prefers […]
What Happens When the Stock Market Crashes?
Table Of Content Does The Stock Market Crash in 2025? Here’s Why It’s Possible We believe a market crash in 2025 is a real risk — and the warning signs are already in place. Inflation, while cooling slightly, remains sticky in key sectors, and the gold price has recently hit all-time highs — often a […]