Investing Basics

A quote is the most recent price at which a security has traded. It is typically expressed as a bid price and an ask price. The bid price is the price that a trader is willing to pay for a security, and the ask price is the price that a trader is willing to sell … Read more

A bear in investing is an investor who believes that a particular security or market is going to decline in value. Bears will typically sell their securities in an effort to avoid losses, and may also short sell securities in order to profit from a decline in price. Who is a bear in stock market? … Read more

At a premium refers to a situation where an investor pays more for an asset than its current market value. This can happen for a variety of reasons, but is typically due to the investor’s belief that the asset will increase in value over time. There is always some degree of risk when paying a … Read more

Investment Banking: What It Is and What Investment Bankers Do. What are the basics of investment banking? There are four main types of investment banks: commercial banks, merchant banks, investment banks, and universal banks. Commercial banks are the most common type of investment bank. They provide loans, credit, and other financial services to businesses and … Read more

Companies Buy Back Their Own Shares for Various Reasons. When can a company can buy back own shares? A company can buy back its own shares for any reason it deems fit, including reducing the number of shares outstanding in order to increase the value of each individual share. There are generally no restrictions on … Read more

Pyramiding is an investing technique that entails buying additional shares of a stock or security as it appreciates in value. The goal of pyramiding is to maximize gains by increasing one’s position in a security as its price rises. Pyramiding can be a risky strategy, as it depends on the continued appreciation of a security’s … Read more

Investment climate refers to the overall environment in which investments are made. It encompasses factors such as political stability, economic growth, taxation, inflation, and interest rates. Investors need to be aware of the investment climate in order to make informed decisions about where to invest their money. For example, countries with high levels of political … Read more

When you’re ready to start investing, one of the first decisions you’ll need to make is what your primary investment vehicle will be. your primary investment vehicle is the account type you’ll use to hold the majority of your investments. There are several different types of primary investment vehicles, each with its own set of … Read more

Gross interest is the total interest earned on an investment before taxes or other deductions are taken out. For example, if you invest $100 in a savings account that pays 2% interest per year, your gross interest would be $2. After taxes and other deductions are taken out, your net interest would be less than … Read more

Loan stock definition: Loan stock is a type of debt security that typically pays periodic interest payments, known as coupons, and repayments of principal at maturity. Loan stock may be issued by companies, governments, or other entities as a means of borrowing funds from investors. Loan stock typically pays periodic interest payments, known as coupons, … Read more