Stock split, whereby a company fragments its stock to make the stock more liquid, is among the common acts that firms adopt when it comes to the stock market. As much as the move has merits, it does have demerits that are worth mentioning. Both investors and companies must be aware of these disadvantages…
A stock split is a corporate action that aims at making equities more approachable to certain investors. Depending on the specifics of the process, it can have great psychological and practical consequences for a firm and its investors. In this article, we will further elaborate on the idea of stock splits as well as…
Often labeled as risky and volatile, the stock market has also proven to be a powerful tool for generating long-term capital gains. The experiences of countless investors stand as a testament to this fact. Investing in stocks over the long term is a strategic move, as stocks have the potential to compound returns over…
Creating a budget can help you make confident decisions and enjoy peace of mind. However, a detailed budget can be complex to manage. The 50-30-20 rule splits expenses into just three categories. It also offers recommendations on how much money to use for each. You can get on the road to financial well-being with…
The Rule of 72 is one of the most useful tools in the area of investing: it offers a speedy method to determine the number of years that would be necessary for an investment to double given an annual rate of interest. However, this rule is one of the basic and fundamental ones, and…
Undervalued shares appear in a situation where the stock shares are sold in the market at low prices relative to their intrinsic worth. This intrinsic value is based on specific key financial parameters, including cash flow, profits, return on assets, liabilities as well as others. Nonetheless, for several reasons, the market price of a…
ETFs or exchange-traded funds are a bunch of funds that trade on various exchanges, generally tracking a specific index. When you buy an ETF, you receive a bunch of assets clubbed together that you can buy and sell during market hours, lowering your risk and exposure while helping to diversify your portfolio. An ETF…
The 7% sell rule is a fundamental principle for selling stocks that states that you should sell a stock if and when it falls 7–8% below the price you paid for it. This rule is based on a study of over a century of stock market history, which found that even the best stocks…
When it comes to investing it is always important to understand the prevailing market conditions. Bull market and bear market are other terms that people use to refer to the general movement of the stock market. It is always important to determine whether the market is in a bull run or a bear run…
Among the myriad of ways, one way investors earn money is through acquiring stocks and then holding them for an extended amount of time, and finally selling them once they’ve gone up in price earning capital gains. Stock market investments are arguably one of the best ways to build long-term wealth. Even if you’re…
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