Merger are deals that unite two separate companies into a single new company. There are a number of different types of mergers, and a number of different reasons for companies to go through one. The most common type is the uniting of two completely separate companies into a single new company with a new name. […]
A crossed market refers to a temporary situation where bid prices associated with a particular asset or security is higher than the asking price. Also referred to as backwardation, it is the futures market relationship where the prices are lower than the spot prices. A crossed market is a temporary situation that presents an arbitrage […]
The cup and handle pattern is a continuation chart pattern that looks like cup and handle with a defined resistance level at the top of the cup. It forms from a strong drive up that pulled back and consolidated over a period of time creating the cup before making another push to the […]
What is a Stop-Limit Order? A stop-limit order is an order type that combines the features of a stop and a limit order with the idea to reduce slippage risk. To successfully execute this order type, two price points must be determined: a stop price and a limit price. The stop price will trigger the […]
The term “shares outstanding” refers to the stock of a company that is currently held by all shareholders, which includes restricted shares owned by company insiders and share blocks owned by institutional investors. The outstanding shares of a company are shown on its balance sheet under the Capital Stock heading. The number of shares that […]
As an entrepreneur, it is common to seek private funding when you want to start a business. These calls for meetings with angel investors and venture capital firms where you will get to present your idea and if they like it, they will fund you in exchange for a percentage in your company. Once you […]
Earnings Per Share (EPS) can be defined as a portion of a company’s profit allocated to a person’s share of the stock. It is also the market prospect ratio used to measure the net income earned per share of stock outstanding and helps to show how profitable a company has become especially on the shareholder’s […]
A profit/loss ratio is a measure of the ability of a particular trading system to generate profit instead of loss. A system’s profit/loss ratio is calculated by taking the average profit from all winning trades divided by the average losses on all losing trades over an arbitrary period of time. Many novice investors appreciate the […]
In trading, dead cat bounce refers to a temporary recovery that happens after a long decline which is usually followed by a downtrend. It can be defined as the chart phenomenon that happens during bearish moves. Basically, it is a long awaited correction from a brutal bearish trend. As a market jargon, it is a […]
An exchange traded fund, or ETF, is a marketable security tracking bonds, commodities or other baskets of assets, such as an index fund. Unlike a mutual fund, ETFs trade just like the shares of an equity stock on stock exchanges. An Exchange Traded Funds will undergo price changes over time as they are traded on […]
