Behavioural finance is the study of the influence of psychology on the behaviour of financial practitioners and the subsequent effect on markets.Behavioral finance argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational. It is a a field of finance that proposes psychology-based theories to explain stock market … [Read more...]
What is Dash to Trash ?
Dash to Trash refers to a situation when the investors trading in the market flock to a class of securities or other assets, bidding up prices to beyond what can be justified by valuation or other fundamental measures. While it is known that the dash-to-trash effect can occur within any type of security, the phrase is typically used to describe the low-quality stocks and … [Read more...]
What to buy ? ETF’s or Stocks
Should You Buy Stock Or An ETF? Whether to buy the stocks or the ETF? This is one question that Investors encounter every day. Many are under the impression that if you buy an ETF, you are stuck with receiving the average return in the sector. This is not necessarily true, depending on the characteristics of the sector. Making this choice is no different from any investment … [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...]
“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...]