The January effect is the tendency for stock prices to rise during the month of January. This phenomenon was first identified in the early 1900s, and has been observed in markets around the world. There are a number of theories as to why the January effect exists, but the most commonly cited reason is that … Read more
A Dutch auction is a type of auction in which the auctioneer begins with a high asking price which is progressively lowered until a bidder accepts the current price. The term “Dutch auction” is often used in the financial world, especially in the context of bond sales. In a Dutch auction bond sale, the issuer … Read more
Liar’s poker is a game that is often used to teach people about investing in stocks and other securities. The game is played with a deck of cards, and each player is dealt a hand of five cards. The object of the game is to correctly guess the value of the other players’ hands, and … Read more
A blue chip is a nationally recognized, well-established, and financially sound company. Blue chip stocks are known for their stability, reliability, and high dividend yields. Investors often consider blue chip stocks to be a safe investment, even in times of economic turmoil. examples of blue chip stocks include: -Johnson & Johnson -Procter & Gamble -Coca-Cola … Read more
A deposit/withdrawal at custodian (DWAC) is a transaction that allows an investor to electronically transfer securities from one broker-dealer to another. This type of transaction is often used to move securities between accounts or to settle a trade. What type of stock is DWAC? DWAC is an acronym for Deposit with AVCS Custodian. This type … Read more
Mandatorily redeemable shares are a type of equity security that gives the holder the right to require the issuer to redeem the shares for cash, at a predetermined price, at specified intervals. The price is typically set at a premium to the current market price of the shares. Mandatorily redeemable shares are often used by … Read more
Large cap stocks are those that are traded on major exchanges and have a market capitalization of $10 billion or more. They are typically well-established companies with a long history of paying dividends. While large cap stocks tend to be less volatile than small cap stocks, they also tend to have slower growth rates. For … Read more
Yield on cost (YOC) is a metric used to evaluate the performance of a stock investment. It is calculated by dividing the current annual dividend by the original purchase price of the stock. For example, if a stock was purchased for $50 per share and it currently pays an annual dividend of $2 per share, … Read more
“To scale out” is a term used in stock trading that refers to the act of selling part of your position in a stock after it has risen in value. For example, if you buy a stock for $10 and it rises to $20, you may choose to scale out by selling half of your … Read more
The if-converted method is a way of valuing a convertible security, such as a bond or preferred stock, that takes into account the possibility that the security may be converted into another form, such as common stock. The method is used to calculate the value of the security as if it were converted into the … Read more
