What Is a Small Office/Home Office (SOHO)?

A Small Office/Home Office, or SOHO, is a type of business that is typically operated out of a small space, such as a home or an apartment. These businesses are usually run by a single person, or a small team of people, and they often have a limited budget. SOHO businesses typically offer services that … Read more

The Clientele Effect Happens After Changes to Taxes, Policy, or Dividends.

. The Clientele Effect is seen after changes to taxes, policy, or dividends. What is the signaling effect of dividend payments? Dividend payments have a signaling effect in that they communicate to the market that a company’s management team is confident in the company’s long-term prospects. By paying a dividend, a company is essentially saying … Read more

How a Protective Put Works.

A protective put is an options trading strategy that involves purchasing a put option to hedge the downside risk of a long stock position. The put option gives the holder the right, but not the obligation, to sell the underlying stock at a predetermined price (the strike price) on or before a specified date (the … Read more

U-Shaped Recovery.

The U-Shaped Recovery is a term used to describe the shape of a typical recessionary economy. The U-Shaped Recovery describes an economy that has been through a severe recession, but is now beginning to rebound. The rebound is typically slow at first, but picks up speed as time goes on. A U-Shaped Recovery is often … Read more