Archive for July, 2011

While reading a Bloomberg article on how the default in Greece caused a loss of $1 trillion dollar in the global equity market, a question came into my mind, what is the total value of the stock market? In other words, what is the sum of the market...

July 13, 2011 | In: General

When Is a Stock Overvalued?

Long term investors usually do some due diligence on a stock before buying it. This due diligence consists of knowing the long term technical information about the stock, informing themselves about the company's business and potential future, and, of...

In this current market, we are seeing more and more reverse splits taking place. The latest prominent reverse split was Citigroup's, which outcome wasn't (to say the least) impressive. When there's a reverse split, new investors wonder, is that good for...

One of the stocks that I watch most (but I've stopped trading since last year) is BAC. Although I have categorized this stock as risky before, I think it is one of the most interesting stocks out there. The pattern is now very clear, the long term...

One of the common terms in stock trading is the market capitalization or the "market cap". The market capitalization of a company is, in short, the company's value as determined by the market. For example, at this moment, the market capitalization of...

July 7, 2011 | In: General

What Are Married Puts?

We all know that the majority of people don't trade stocks, because they think that: - Stock trading is a form of gambling - Stock trading can be very risky We, stock traders, laugh at the first point, because real stock trading doesn't just...

Probably every investor at the moment is eying the Facebook IPO. Everyone knows that the stock can skyrocket in the first few days and everyone wants to invest and be part of this new social revolution. The "social revolution", however, is a two edged...

July 1, 2011 | In: General

What Is a Penny Stock?

I never paid attention to all these ads about penny stocks (you know, make 100% of your investment in a week or so), but lately I'm noticing these ads more and more, so I decided to make a small research on penny stocks to know what they are, whether they...

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