So what’s the difference with large cap vs small cap stocks? Quite a bit actually! In this article, we will help shed light on market capitalization, differences between large and small cap stocks, and things to consider when trading both types. What is Market Cap? Market cap is a measure of a company’s value […]
Stock market
Tesla Added to S&P 500: What’s Next?
It was recently announced that Tesla would be added to the S&P 500 index before the open on December 21, 2020, ending years of speculation by Tesla fans and critics about the S&P index committee’s hesitation to include the controversial automaker. The inclusion would make Tesla, sitting at a $594 billion market cap, one of […]
What is a Special Purpose Acquisition Company (SPAC)?
A special purpose acquisition company, or a SPAC, is a publicly traded shell company that raises collective investment funds through an initial public offering (IPO) in the form of a blind pool. Also called “blank check companies,” SPACs are formed strictly to raise funds through an IPO in order to acquire private companies. The […]
Price Discovery Explained For Beginners
What is Price Discovery Price discovery is the process where buyers and sellers determine where a transaction can take place based on supply and demand. This evaluation process uses the economic concept of supply and demand to find a price where a buyer and a seller agree to trade. The supply and demand for […]
Best Hedges for a Devaluing Dollar
Many macro investors are betting on significant inflation in the US Dollar for the foreseeable future so we put together a list of some of the best hedges for a devaluing dollar. At the risk of oversimplifying the prevailing opinions of this group, I think a basic simplification of the prevailing bearish dollar view […]
The September Effect: What it is and Why it Happens
If you follow the markets long enough, you’ll see that stock prognosticators and weather forecasters have similar seasonal predictions. When the weather heats up in spring and our minds turn to the upcoming summer, the catchphrase for investors has been “sell in May and go away”. Equity returns tend to outperform between November and […]
Long-term vs Short-term Capital Gains Tax: What’s the Difference?
When you buy and sell financial securities, you will inevitably generate profits and losses. The purchase of a stock that runs up 20% provides an excellent source of income, but with income comes taxes. There are two major tax implications that stock traders need to be aware of, which include long-term and short-term capital […]
Snowflake IPO Was Everything we Hoped For
The hot cloud software firm Snowflake ($SNOW) went public on Wednesday, September 16, and the stock went nuts. Despite its IPO price of $120 per share, the stock closed its first day of trading at $253.93 after reaching an intraday high of $319.00. Tech IPOs are scarce, and Snowflake’s IPO is one of […]
Consumer Price Index: Why it’s Important to Traders
During September 2020 Federal Reserve monetary policy meeting, the central bank made a big deal of targeting its inflation objective. The Fed has determined that it needs to do whatever it can to push inflation back above its 2% target. While there are several different ways to measure inflation the most popular and widely watched […]
The Craziest Stock Market Scandals of all Time
Whether it’s an orchestrated short squeeze, an outright fraud, or insider trading, the stock market is wrought with scandal and controversy. And the kicker is that the public only hears about a tiny fraction of them. Consider how many OTC pump and dump or insider trading schemes occur every week without anyone, but the […]