Stocks, Options & Warrants
There are many different types of equity investments including common stock, preferred stock, convertible stock and restricted stock. These resources will help you learn the difference between each and help you understand derivatives such as stock options and warrants.
What Is a Derivative?
With the word derivative being thrown around every night on the news, you feel left out if you don't know what it means. Don't worry! In a few seconds, you're going to learn what a derivative is, the different types of derivatives, and why derivatives can be dangerous to the overall financial system if left unchecked.
With the word derivative being thrown around every night on the news, you feel left out if you don't know what it means. Don't worry! In a few seconds, you're going to learn what a derivative is, the different types of derivatives, and why derivatives can be dangerous to the overall financial system if left unchecked.
Over-the-Counter Options
For the wealthy and well connected, derivative choices aren't limited to standarized exchange-traded options such as puts and calls that trade through clearinghouses. These so-called over-the-counter options pose their own threats and risks and are, in a large part, responsible for the global economic meltdown of 2007-2009. Discover how the over-the-counter options differ from their traditional counterparts in this special article.
For the wealthy and well connected, derivative choices aren't limited to standarized exchange-traded options such as puts and calls that trade through clearinghouses. These so-called over-the-counter options pose their own threats and risks and are, in a large part, responsible for the global economic meltdown of 2007-2009. Discover how the over-the-counter options differ from their traditional counterparts in this special article.
Real Life Example of Dual Class Structures in a Public Company
Many investors don't realize that companies can offer a dual class structure, treating stockholders differently depending upon which class of stock they own. Here, we examine a real life example of the dual class structure at Ford Motors to illustrate this idea and how it can result in disparities in the event of liquidation.
Many investors don't realize that companies can offer a dual class structure, treating stockholders differently depending upon which class of stock they own. Here, we examine a real life example of the dual class structure at Ford Motors to illustrate this idea and how it can result in disparities in the event of liquidation.
Using LEAPS Instead of Stock to Generate Huge Returns
LEAPS are a form of Long Term Equity Anticipation Securities that can be used instead of purchasing shares of stock outright to leverage your returns. Although they are not without danger, LEAPS can be a useful tool for an aggressive trader or investor who wants to avoid borrowing on margin yet still enjoy the benefits of leverage.
LEAPS are a form of Long Term Equity Anticipation Securities that can be used instead of purchasing shares of stock outright to leverage your returns. Although they are not without danger, LEAPS can be a useful tool for an aggressive trader or investor who wants to avoid borrowing on margin yet still enjoy the benefits of leverage.
Long Iron Condor Option Trade
The long iron condor is a type of advanced stock option trade that allows you to profit when a stock trades within a specific range. One advantage of the long iron condor trade is that it lets you limit your maximum potential loss to a predefined figure so you know the most you have exposed.
The long iron condor is a type of advanced stock option trade that allows you to profit when a stock trades within a specific range. One advantage of the long iron condor trade is that it lets you limit your maximum potential loss to a predefined figure so you know the most you have exposed.
What are Dow Futures and How Do They Work
Have you ever picked up the newspaper or watched CNBC and wondered what the reporters were talking about when they discussed the Dow Futures and the influence they would have on the direction of the stock market? This will service as a quick introduction to Dow Futures and help you understand a little bit about them.
Have you ever picked up the newspaper or watched CNBC and wondered what the reporters were talking about when they discussed the Dow Futures and the influence they would have on the direction of the stock market? This will service as a quick introduction to Dow Futures and help you understand a little bit about them.
A Real Trade from One of My Operating Businesses
This morning, one of my operating businesses, Mount Olympus Awards, LLC executed a trade this morning through its Charles Schwab account known as a "buy-write" that consisted of two-legs. It entailed the purchase of a block of stock and the subsequent writing (selling) calls against those shares, which gave another investor the right, but not the obligation, to purchase our position at a pre-established price in exchange for an insurance premium. Learn more about buy-write stock options.
This morning, one of my operating businesses, Mount Olympus Awards, LLC executed a trade this morning through its Charles Schwab account known as a "buy-write" that consisted of two-legs. It entailed the purchase of a block of stock and the subsequent writing (selling) calls against those shares, which gave another investor the right, but not the obligation, to purchase our position at a pre-established price in exchange for an insurance premium. Learn more about buy-write stock options.
How Technology Can Help - Or Destroy - Your Portfolio
Technology investing can be complicated. Consider the case of Vonage and Skype VoIP phone service relative to the major phone companies. A client, by switching to these new Internet-carried voice companies - and there are many, many others besides Vonage and Skype - can save thousands of dollars per year. That doesn't bode well for the shareholders of the old-line phone companies. As an investor, this is the sort of thing you need to carefully consider when making stock selections.
Technology investing can be complicated. Consider the case of Vonage and Skype VoIP phone service relative to the major phone companies. A client, by switching to these new Internet-carried voice companies - and there are many, many others besides Vonage and Skype - can save thousands of dollars per year. That doesn't bode well for the shareholders of the old-line phone companies. As an investor, this is the sort of thing you need to carefully consider when making stock selections.
Getting Paid to Invest in Stocks by Trading Sell to Open Put Options
By selling open put options it is possible to generate premium income in exchange for issuing a guarantee to purchase shares of stock at a predetermined stock price. This article explains how you can get paid to buy shares of stock that you would have already wanted to purchase by selling open put options. This strategy is not for beginners and should only be carefully considered by working with your financial advisors.
By selling open put options it is possible to generate premium income in exchange for issuing a guarantee to purchase shares of stock at a predetermined stock price. This article explains how you can get paid to buy shares of stock that you would have already wanted to purchase by selling open put options. This strategy is not for beginners and should only be carefully considered by working with your financial advisors.
Understanding Stock Options
As an employee and an investor, you'll probably come across options at one point or another. Employees may be granted employee stock options as a form of compensation, and investors may hear about put and call options. While both of these concepts share the same name and some of the same lingo, they're quite distinct.
As an employee and an investor, you'll probably come across options at one point or another. Employees may be granted employee stock options as a form of compensation, and investors may hear about put and call options. While both of these concepts share the same name and some of the same lingo, they're quite distinct.
Seven Questions that Can Help You Select Better Stocks
When putting together a portfolio of companies, there are seven basic questions that every investor should ask. The answers can help uncover competitive strengths and weaknesses, providing a better understanding of the economics and market position of the business.
When putting together a portfolio of companies, there are seven basic questions that every investor should ask. The answers can help uncover competitive strengths and weaknesses, providing a better understanding of the economics and market position of the business.
What is the Preemptive Right?
The preemptive right is the right belonging to existing shareholders of a corporation to avoid involuntary dilution of their ownership stake by giving them the chance to buy a proportional interest of any future issuance of common stock. The preemptive right is an anti-dilutive provision and is also known as the subscription right or subscription privilege.
The preemptive right is the right belonging to existing shareholders of a corporation to avoid involuntary dilution of their ownership stake by giving them the chance to buy a proportional interest of any future issuance of common stock. The preemptive right is an anti-dilutive provision and is also known as the subscription right or subscription privilege.
Building a Stock Position by Writing Put Options
An investor can write put options to build a stock position. By utilizing put options, he can lower his cost basis, potentially maximizing long-term returns.
An investor can write put options to build a stock position. By utilizing put options, he can lower his cost basis, potentially maximizing long-term returns.
The Big Lie - HR-3574 - Stock Option Expense and the House of Representatives
The House of Representatives recently passed HR3574 which will over rule the FASB requirement that stock option expense be reflected in the income statement. This article details the problems with the House's actions and explains why stock option expense is very real to investors.
The House of Representatives recently passed HR3574 which will over rule the FASB requirement that stock option expense be reflected in the income statement. This article details the problems with the House's actions and explains why stock option expense is very real to investors.