In financial terms, the margin is the amount of collateral an investor has to put up to cover the risk they are taking with their broker/exchange. Investors can create credit risk if they obtain money from a broker to buy financial instruments. They can also obtain money to sell financial instruments short or enter into …
Margin Trading 101: What Is the Definition of Margin? Read More »
Market economies, as well as command economies, have their advantages and disadvantages. It is important to learn more about them. First of all, they occupy two polar extremes in the organization of economic activity. It is worth noting that primary differences lie in the division of labor, or factors of production, and the mechanisms that …
Market Economy or Command Economy, Which One is Better? Read More »
Even before the war in Ukraine, many people knew at least something about Russian oligarchs. Since Russia’s invasion of Ukraine, many governments imposed various sanctions on them. Let’s learn more about the situation. People should keep in mind that the term “oligarch” derives from “oligarchy”, which is a system of government in which a small …
Last year, Facebook Inc. changed its name to Meta. Facebook’s parent company Meta Platforms Inc. primarily earns money by selling advertising space on its various social media platforms. Its platforms include websites and mobile applications that allow users the ability to connect and communicate with family and friends. Meta’s business empire includes a world-famous social …
It is hard to find people who don’t know at least something about Apple or its products. The company founded in the 1970s in California changed the world with its products. Apple is a great example of a company that continues to play an important role for a long time. However, even tech giants have …
Apple is one of the most famous companies not only in the U.S. but around the world as well. Its history dates back to 1976, when Steve Jobs, Steve Wozniak, and Ronald Wayne founded Apple Computer Company. It became the first U.S. corporation to surpass $1 trillion in market capitalization in 2018. Solid sales of …
Everything has its advantages and disadvantages, and a labor union is not an exception. It is important to consider various factors when it comes to labor unions. As a reminder, a labor union is an organization formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits, and working …
There are many developed countries in the world. It is hard, if not impossible, to discuss all of them in one article. So, let’s focus on the largest economies. As a reminder, gross domestic product (GDP) is an estimate of the total value of finished goods and services produced in a country’s borders during a …
Big and small banks have to cope with numerous challenges daily. The financial crisis that occurred in 2008 had a tremendous impact on financial institutions. They had to adapt to the new reality. While many of those changes resulted from new financial regulations designed to prevent another crisis, technological advancements raised customers’ expectations and created …
Every investor should learn more about asset allocation. It is a very important part of creating and balancing your investment portfolio. It is worth noting that it is one of the main factors that lead to your overall returns – even more than choosing individual stocks. Establishing an appropriate asset mix of stocks, bonds, cash, …
Market capitalization is the total dollar market value of a company’s outstanding stocks. Traditionally, we can calculate the capitalization by multiplying the number of shares by their price. Market capitalization can be an important tool for risk assessment and can tell traders how safe a company is. Being aware of market cap as a measure …
People hear about various companies on a daily basis. It makes sense to learn more about joint-stock companies. Moreover, it is worth noting that the modern corporation has its origin in the joint-stock company. As a reminder, a joint-stock company is a business owned by its investors, with each investor owning a share based on …
Investors have to make important decisions on a regular basis. So, it is very important to learn more about various aspects. Let’s have a look at an overweight investment. It is an asset or industry sector that compromises a higher-than-normal percentage of a portfolio or an index. For instance, an investor might choose to allocate …
In January, wireless service providers Verizon Communications Inc. and AT&T Inc. agreed to postpone their plans of rolling out 5G technology near certain airports. They agreed to change their plans regarding 5G technology as airlines officials and the Federal Aviation Administration (FAA) stated that the new service could affect the safety equipment in some aircraft. …
People hear about stocks on a regular basis. However, there are various types of them. So, it is desirable for investors to learn about the different types and to understand their unique characteristics. Let’s have a look at various stock categories to learn more about them. We can start with common stock. It represents partial …
