Coiled markets refer to markets thought of having potential to make a sizable move in one direction, but for one reason or another, is currently restrained from doing so.Basically ,a market that is believed to have the potential to make a strong move in one direction after being pushed in the opposite direction. Coiled markets refer to markets thought of having potential to … [Read more...]
What is a Tech Bubble in Stock Market ?
Tech Bubble in Stock Market is a pronounced and unsustainable market rise attributed to increased speculation in technology stocks. It is highlighted by rapid share price growth and high valuations based on standard metrics like price/earnings ratio or price/sales. The technology stocks involved in a bubble may be confined to a particular industry (such as internet software … [Read more...]
Yield Tilt Index Fund
An alternative to a pure index fund, a yield tilt fund diversifies its holdings among a universe of stocks that is "tilted" in the direction of higher yield, such as the high-yield stocks that comprise the S&P 500. Yield tilt funds are based on the assertion that, since dividend income is taxed at higher rates, the market must compensate for this taxation by providing … [Read more...]
“After The Bell” in Stock Market
"After the bell" is basically a financial slang used for activity occurring after the close of the stock market, The New York Stock Exchange (NYSE) closes its trading day with the ringing of a bell including after-hours trading, illegal late trading of open-ended funds (during the mutual fund scandal of 2003), earnings announcements, acquisition plans and merger agreements. The … [Read more...]
Disadvantages of Owning Common Stock
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...]