Positive Abnormal Returns: Growth You Can Trust

Have you ever initiated an investment that provided you with an abnormal return?  An abnormal return results when an asset price surpasses expectations of what the asset price should be. For example, let’s say that you wanted to purchase stock in Apple at $400 per share and that you expect the share to be worth […]

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What is Share Price

From my experience with stock market investing, it is important to start with the basics. That is why our discussion will begin with the topic of share price (which is also known as stock price). Although share price is by no means an easy topic to cover, it is a core principle in stock market investing. Without […]

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What You Need To Know About Beta Coefficient

Have you ever wondered how you can quickly and easily determine the risk of a stock or stock portfolio? You can start by doing a little bit of research on the beta coefficient of investments that you are considering. The beta coefficient of a stock or stock portfolio is the measure of volatility of a […]

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Death Star IPOs: How To Cash-in on IPO Mania

An IPO is an acronym that stands for ‘initial public offering’. IPOs represent the first time that an organization sells shares of stock on the public market. IPOs are typically used by organizations to raise capital, but can also be used to increase exposure, gain notoriety, and increase liquidity. Many times organizations that file for […]

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In Stocks Oversold? Be Ready to Act

Stocks that are in oversold situations typically sell at prices that are well below true value. So what do you do when a stock that you hold suddenly becomes oversold? The first thing that you need to do is do not panic. The reality is that you can use an oversold situation to generate profits […]

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What is Dividend? The Gold of Stock Market Investing

It’s important to note that investing in the stock market is not all about finding shares that are most likely to double or triple in market value over a short period of time. Although that would be nice, it’s very difficult to pick winners solely based on this methodology. That is why there is more […]

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Market Capitalization

Market capitalization (or market cap) is a useful descriptive metric for stock market investors. It is a metric that describes the size or total market value of a corporation. Market capitalization is calculated by multiplying the current share price by the total number of shares outstanding. For example, if the current share price for a given stock […]

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Top 3 Investor Mistakes

If you’re new to the world of stock market investing, you might not be familiar with some of the common mistakes made by investors.  Although these mistakes have been made over-and-over again, and although these mistakes have been written about time-and-time again, stock investors continue to ignore these common pitfalls. This post will bring these […]

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Value Stock

Try answering this question: How do I know if I should invest in the stock of a specific company? Regardless of whether you are a novice or seasoned investor, this question is probably one of the most frequently asked questions in stock market investing history. Contrary to popular belief, the answer to question is relatively […]

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Share Price Bubbles: What you Need to Know

Share prices can easily become subject to bubbles. One of the most notable share price bubbles in recent history resulted in the stock market crash of 2001. Another recent (and painfully notable) price bubble occurred in the housing market in 2007. That bubble triggered the Global Financial Crisis of 2007 – 2009. For the most […]

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