Monthly Archive:: April 2007

Investor v/s Trader: What Is The Difference ?

The words investors and traders are commonly used in the world of stock market. Many people actually use them interchangeably as if they mean the same. Infact it is not true. Both words have different meaning. Even though investors and traders buy/sell stocks, they perform two very different tasks using very different

U.S. Economy: We Make and Sell Debts

From the “oh, puh-leez” school of economics comes this headline from the recent G7 summit. A week ago the Federal Reserve estimated that domestic US GDP grew at an annual rate of 2.2%; after stripping out the more questionable data it’s more like zero growth. Reminds me of the old Soviet Union:

Margin Trading: Amplify Your Gain/Loss

Let us say someone told you to buy stocks on margin. Do you really know what it means ? Do you need to know about margin trading ? Do you really understand margin trading ? Do you understand all the pros and cons of margin trading ? If you have answered No

ETF Special: Variety Of Options

For those of you that do not know what Exchange Traded Funds (ETFs) are here is a short description. What are ETFsThink of an ETF as a mutual fund that trades like a stock thus experiencing price changes throughout the day as it is bought and sold. You can short sell them

Interesting Stories That You Missed – 2

Over the past few days i came across some interesting news/facts which deserves some limelight. Fannie & Freddie Help OutGovernment-backed mortgage finance companies Fannie Mae (FNM) and Freddie Mac (FRE) will help out struggling mortgage holders to avoid foreclosures. Fannie Mae has planned to give borrowers the option of refinancing out of

Close-End Funds: A Steady Income Vehicle

Every now and then you hear analyst and investors talk about Close-End Funds. So what are these funds ? What do they do ? Who manages them ? Who can invest in them ? Why would someone invest in them ? Let us find out. What are Close-End FundsClose-End funds are usually

I Have Got A Yen For You

Guest Author: My name is Mazy Hedayat, a lawyer in Chicago. I work with entrepreneurs and business people including software, Internet, and financial professionals. Futures and options are big in Chicago so it ought to come as no surprise that this post is from one of my clients who is a futures

Options Trading: How To Read The Options Table

The power of options lies in their versatility. They give you the power the adjust your position according to the present situation. However just like any other security, options have their own set of problems. Options are complex securities and can be sometimes extremely risky. Option trading is therefore not for everyone.

Short Guide On Earnings & Current Volatile Stocks

What Are Company Earnings Earnings can be defined as the net income/profit produced by the company after-tax and other expenses. Company earnings is one of the most important factor for analyst when they are analyzing a company. The future growth of the company is estimated based on its current earnings. Most savvy

Glossary – 1

List of stock/investment related words Accounting accounts payableaccounts receivableaccumulated depreciationappreciationassetasset/equity ratioauditbalance sheetcash flowcash flow statementdebt/asset ratiodebt ratiodepreciationequityGAAPincome statementintangible assetliabilitynet marginoperating assetoperating cash flowspre-depreciation profitpre-tax profit marginprofit and loss statementprofit marginReturn on AssetsReturn on CapitalReturn on EquityReturn on Invested CapitalReturn on InvestmentReturn on SalesReturn on Total AssetsroyaltySEC filingshareholders’ equitystockholders’ equitytangible assettangible net worthtotal