The main disadvantage of common stock is that in case the company needs to be liquidated, they won't see a cent of their money after the bondholders, other debt holders, and preferred stock owners have received their part. This scenario shouldn't be dismissed by a responsible stock investor. After all, Enron and WorldCom plunged themselves, and thousands of Americans, into a … [Read more...]
What Are the Benefits of Owning Common Stock?
What Is Common Stock? Common stock is the most basic kind of stock that a company can emit. Owning common stock from a company means that the stockowner owns a piece of the company. This ownership can be executed through his voting rights: one share, one vote. Proprietors of common stock can choose the members of the board and even decide determined policies. Besides the … [Read more...]
What is Stock Market Crash ?
In recent times many would-be investors simply refuse to enter the stock market, because of the risks involvedand fear of crash in stock market . . While it is true that crashes can happen, understanding what causes a crash and what the effects are can help set your mind at ease and can help you understand more about investing. What Happens When The Stock Market Crashes? A … [Read more...]
Check List of Things for Trading in Stocks
1.) If the lead stochastic crosses over the 20 band consider this a possible buy signal, and if it crosses below 80, then it would be a sell signal. 2.) Use several charts in different time periods for each stock you are trading. 60, 13, 8, 3, and 1 minute charts will enable you to see the bigger picture. If the 60, 13, and 8 minute charts are in an uptrend, look at the 3 / … [Read more...]
Finite difference methods for option pricing
Finite difference methods for option pricing are numerical methods used in mathematical finance for the valuation of options. Finite difference methods were first applied to option pricing by Eduardo Schwartz in 1977. Finite difference methods can solve derivative pricing problems that have, in general, the same level of complexity as those problems solved by tree … [Read more...]