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Stock Dilution

Possible Reasons for Stock Splitting

As an investor, you need to understand all there is to know about stock dilution. Stock splitting is one of the most common ways in which the shares of a company are diluted. When the board of directors of a publicly traded company decides to issue new stock to existing shareholders and lower the value of current stocks, it is called a split. Companies often decide to split their stock for one of the following reasons....(more)

Effective Strategies for Diversification in Stock Portfolios

Diversifying your portfolio means you make a wide variety of investments as a risk management technique. Investment experts believe this minimizes the risk because having different types of investments in your portfolio yields greater returns than relying on one individual investment. In other words, diversification balances out the negative outcomes of your portfolio with the positive ones. Consider diversification in stock portfolios to maximize your investment returns....(more)

Events and Factors That Can Make Stock Prices Soar

Stock prices depend on a number of factors, some of which are completely beyond the control of the companies. While nothing is certain in the world of stock trading, there are several factors that reliably make a stock price soar. Depending on the degree and timing of these factors, a stock can jump in a single day or enjoy a quick rise over a longer period of time....(more)

Stock Valuation

The Best Ways to Find and Purchase Underpriced Stocks

One of the best ways for you to make money as an investor is to find underpriced stocks and buy them. Each company has an overall value and the market corrects for it over time. Holding on to an undervalued stock almost always ends in positive cash flow. Use these traits to quickly identify and purchase undervalued stocks....(more)

Where to Find the Most Accurate Stock Earnings Estimates

You need accurate stock earnings estimates in order to make informed decisions about your investments. When looking for the most accurate stock earnings estimates, look to the top stock market analysts. Many of these analysts work with companies with long histories in the business and financial sectors. You must know where to find the best stock earnings estimates analysts to help determine which stocks best work for you....(more)

Understanding Stock Investing: A Financial Overview on Rate of Return

When you contemplate any sort of investment, including the purchase of stock, rate of return is an important metric to consider. In simple terms, this rate refers to the ratio of profit or loss on an investment relative to the amount of the original investment. The net gain or loss goes by the terms interest, gain/loss, profit/loss or net income/loss. The investment that you put into the stock is either the asset, principal or capital, depending on its form. When you write ROR, you generally express it as a percentage....(more)

Stock Options

Take the Best Option: Make the Most from Stock Option Trading

With the increased volatility of the stock market in recent years, options trading has become increasingly popular. Options give investors the right to buy or sell an asset by maturity date at a certain price. This means that investors benefit from price increases while assuming limited risk from price decreases. Here are some tips for profitable option trading....(more)

Essential Tips for Calculating a Stock's Growth Rate

A discussion about stock growth rate is really a discussion about the future growth rate of earnings per share (EPS). The most important numbers for this rate, the estimates of earnings, are the ones that you have not seen yet. An entire industry has appeared to estimate those numbers and send them to investors. Once you know the EPS growth rate for a stock, you know whether or not that stock makes sense as an investment vehicle....(more)

Winning in a Bear Market: Basics of Option Trading

Stock options give you the right to buy or sell an asset by a certain date at a strike price. With the recent volatility of the stock market, options have become quite popular among investors. Here are the options trading basics you should know before engaging in these investments....(more)