Finance Blog

How do you define what is a penny stock? There is no official definition. Some say any stock under two dollars, some say under five dollars.....

There are many, many factors that affect the price of a share but basically it is determined by how much somebody is willing to pay for it.....

The caller seemed surprised that I had never heard about Compound Stock Earnings Programs, or CSEs. “People are earning three to six percent per month with little or no risk”, she continued, “I’m thinking of attending a seminar”. A wise man once said: “If it sounds too good to be true, it probably is”, but this sure is a creative euphemism for what has to be a rather complicated options strategy.....

You may have heard the statement before; the biggest battles traders will face are within. If there was an explanation as to what these sorts of battles are it’s more than likely along the lines of overcoming bad habits, emotional issues, biases, beliefs and so on. But why are these so important to master, and why is it so hard to do so?....

Stock is ownership in a company. Each share of stock represents a small piece of ownership. The more shares a person holds, the more part of the company he owns. The more part of the company a person owns translates to more dividends he earns when the company profits. ....

There have been numerous initiatives by companies to develop the potential of different alternatives to crude oil such as natural gas and ethanol. In the bid for the world’s search for alternative sources of energy ethanol has played a prominent role. Given the supply and demand factors of crude oil, time is running out to develop suitable alternative energy sources. ....

Short Selling is a strategy in which a trader sells a commodity or security that he or she does not own in order to profit from a falling market.? In this trader will borrow the commodity or security from his broker, who usually in turn has borrowed the shares from some other investor who is holding his shares then immediately sell on to the buyer. At a later date, the trader must buy back the commodity or security from the market to close the position.? If the value of the commodity or security has fallen during this period the short selling trader?s profit will be the difference between his original sale price and the buyback price.....

Successful investment cannot be achieved without setting specific goals. It is the primary aspect of investing. Why do you want to invest? This is the question that every investor should ask himself. Is it to have financial abundance, to educate your children, to retire with financial stability, to get married, to take the dream vacation, to start a new business, or is investing on the stock market a passion! Define your goals well and vividly. See the end result as a reality. Setting your goals will set your life in a positive and abundant life style.....

If one takes a close look at the trading world, it revolves entirely around “predictions”. Every trader or investor would like to have an inkling of the outcome (technical analysis) for a particular security or stock, before parting with his/her hard-earned money!....

This quarter started with huge concern about housing bubble bust followed by subprime crises which all are talking US economy towards a recession. This will be long or short recession only time will tell but impact is getting visible in low consumer confidence and same store sales reports which are falling each month. US government and Federal Reserve is trying their best to pull economy out of this downturn by giving tax concessions and lending money to banks at very low and deferred interest terms. Bear Stearns was biggest causality of this quarter whose stock fell from $80 to $3 in matter of 5 days due to its losses in mortgage backed securities which got severely devalued due to subprime crisis.....