Category: Stock Research
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The most important features of bond
The most important features of a bond are: nominal, principal or face amount—the amount over which the issuer pays interest, and which has to be repaid at the end. issue price—the price at which investors buy the bonds when they are first issued. The net proceeds that the issuer receives, are calculated as the issue…
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Selecting Investments in a Global Market
Investors who want the broadest range of choices in investments must consider foreign stocks and bonds in addition to domestic financial assets. Many foreign securities offer investors higher risk adjusted returns than do domestic securities. In addition, the low positive or negative correlations between foreign and U.S. securities make them ideal for building a diversified…
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Understanding P/E Ratio
The P/E ratio (price-to-earnings ratio) of a stock is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net…
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The Implications of Price Gaps
Price gaps are simply areas on the bar chart where no trading has taken place. In a uptrend, prices open above the highest price of the previous day, leaving a gap or open space on the chart that is not filled during the day. In a downtrend, the day’s highest price is below the previous…
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ETFs vs Mutual Funds and The Fundamental Difference
ETFs are very much like mutual funds. That is, they are baskets of stock that are bought and sold. But they have many differences from mutual funds. The fundamental difference between ETFs and mutual funds in that shares of ETFs can be traded at any time while the host stock market is open. Mutual funds,…
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When Oscillators Are Most Useful
Most oscillator buy signals work best in uptrends and oscillator sell signals are most profitable in downtrends. The place to start your market analysis is always by determining the general trend of the market. If the trend is up, then a buying strategy is called for. Oscillators can then be used to help time market…