What Does Parity Price Mean? The Parity Price is the cost for a given commodity that is tied to a historical price or composite price.When the price of an asset is directly linked to another price.The term "parity" refers to equality. Examples of parity price are: 1. Convertibles - the price at which a convertible security equals the value of the underlying stock. 2. … [Read more...]
Reverse Convertible Note – RCN
A synthetic instrument that shares characteristics with both bonds and stocks. Reverse convertible notes typically provide high coupon payments and final payoffs that depend on the performance of an underlying stock.A security that combines aspects of a stock and a bond. An RCN operates like a debt security that pays a fixed coupon, which is usually higher than the coupons for … [Read more...]
Does Dividend Really Matters?
What is a Dividend? Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many … [Read more...]
How Return On Equity Can Help You Find Profitable Stocks
What Is ROE? ROE is not an absolute indicator of investment value.The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. By measuring how much earnings a company can generate from assets, ROE offers a gauge of … [Read more...]
Choosing a Data-Based Intraday Charts
Traders always have this habit of seeing intraday price charts continuosly while trading in market hours especially based on time intervals, such as five-minute or 60-minute charts. This means that one bar will print at the end of each specified time interval. On a 60-minute chart, for example, a bar will print at 9:30, 10:30, 11:30 and so on until the end of the trading … [Read more...]