Learn About a Bubble in Economics.

A bubble is an economic phenomenon characterized by the rapid and unsustainable rise in the price of an asset. The asset can be anything from a stock or commodity to a piece of real estate. A bubble is usually followed by a sharp and sudden drop in prices, known as a “crash.” Bubbles are often … Read more

Diagonal Spread Definition.

A diagonal spread is an options trading strategy involving the simultaneous purchase and sale of options with different strike prices, but with the same expiration date. The options bought are typically out-of-the-money (OTM), while the options sold are at-the-money (ATM) or in-the-money (ITM). The purpose of a diagonal spread is to profit from a change … Read more

Big Bath.

The Big Bath is a term used to describe a situation where a company takes a large one-time charge to earnings in order to “clean up” its financial statements. This charge is usually taken in order to write off bad investments or to adjust for changes in accounting rules. The Big Bath is often used … Read more