Laddering is a technique that is used by investors in order to minimize the risk associated with investing in initial public offerings (IPOs). Laddering involves investing in a series of different IPOs that are scheduled to come to market over a period of time. This technique allows investors to spread their risk across a number … Read more
A red herring filing is a key step in the process of going public. It is the first official document that a company files with the Securities and Exchange Commission (SEC) when it plans to issue shares to the public. The red herring contains important information about the company and the offering, including the company’s … Read more
Freeriding is the term used to describe the practice of buying shares in a company that has just had an initial public offering (IPO), and then selling them immediately for a profit. This is generally considered to be unethical, as it takes advantage of the fact that the company’s shares are usually underpriced at the … Read more
What Is an IPO and How Does It Work? What is the purpose of an initial public offering IPO )? The purpose of an Initial Public Offering (IPO) is to raise capital for a company by selling shares to the public. This allows the company to expand, invest in new projects, and pay off debts. … Read more
The book building process is the pricing mechanism used in an initial public offering (IPO) in which investment banks and other major institutional investors seek bids from potential investors to determine the price at which the IPO will be offered. The book building process is used to generate interest in an IPO and to set … Read more
The 80-20 rule definition is a investing rule of thumb that states that 80% of the return from a portfolio is generated by 20% of the holdings within that portfolio. This rule is often used by investors to help them focus their attention on the most important holdings in their portfolio. There are a few … Read more
A granular portfolio is one in which each security is individually selected and weighted according to its contribution to the overall portfolio objectives. The process of constructing a granular portfolio is often referred to as security selection. Granular portfolios are typically used by professional investors, such as hedge fund managers, who have the time and … Read more
Joint tenants with right of survivorship (JTWROS) is a type of co-ownership in which each tenant has an undivided interest in the property and a right of survivorship, meaning that upon the death of one tenant, the property automatically passes to the surviving tenant(s). JTWROS is often used in the context of real estate ownership, … Read more
The Rule of 70 is a simple way to estimate how long it will take for an investment to double in value. The rule states that the number of years it will take an investment to double can be approximated by dividing 70 by the compound annual growth rate (CAGR) of the investment. For example, … Read more
Philip Fisher was an American investor and author. He is considered to be one of the most influential investors of the 20th century. His investment philosophy, which he outlined in his book Common Stocks and Uncommon Profits, has influenced generations of investors. What is Jim Cramer’s net worth? As of 2021, Jim Cramer’s net worth … Read more
