… extreme market volatility, exchanges may halt trading for all stocks to maintain orderly market conditions. This action is not inherently good or bad for individual companies but serves as a mechanism to prevent panic selling or buying.
Technical Market Issues or Exchange Problems
Sometimes, trading halts are due to technical issues or glitches on the …
… bonds. As each matures, normal refinancing occurs. The old bond gets redeemed or paid off. The new or replacement bond is sold into a normal market to serves as the replacement.
The Fed simply stands aside from the new transaction. Like a rich wizard quietly getting the wanted outcome.
This will happen millions of times …
… opportunity appears, blazing fast systems pounce taking the spread as profit. That buying and selling harms no investor and serves to bring markets and values inline. That is good arbitrage.
An unlimited range of arbitrage trades exist. Throughout markets, any two prices for the same item creates an arbitrage opportunity. At that instant, a …
… knowledge of the market, volatility typically settles down.
Experience again serves short sellers well. Consider that each stock has personality. Some are steady and reliable some are vulnerable others are explosive. The short seller knows of this behavior in advance.
Each market and industry also display unique behavior and patterns. Again, the short seller …
… up trending or bullish market, a strong bull run for an individual stock needs momentum to continue price movement up for any significant time.
The bull icon serves interchangeably to represent a rising market, an investor buying long or the rising stock play itself. At such times we can say the bulls or herd runs …
Learning the option of options
If you must look at options, begin by reading, Trading Options for Dummies by Joe Durante, MD. This low cost and readily available introductory book gives good basic coverage of the options spectrum. It serves as a good reference to keep on hand.
Managing Investment Markets Risks, Lesson 11. Last …
Your questions about investing quickly answered
Anyone new to investing needs to know about and use Investopedia.
“Educating the world about finance” serves as the perfect tagline for this information rich site. Their search function lets you quickly define almost any investing term.
Using it, anyone can easily search for the meaning of an unknown …
… opportunity asset, cash, for enhanced investment returns.
How much cash should an investor hold?
Investors should hold cash in their investment portfolio separate from their emergency fund that covers six months of living expenses.
Portfolio cash cushions against market downturns and serves as an opportunity asset that offers the ability to take advantage of …
… or Bank of Canada, Bank of England, and so on, the specific mandate of each vary.
However, overall reserve banking serves as the base of all their mandates. That reserve structure or central bank serves as the bank for the banks. At least in theory, the central banks hold the reserves of the banks …
… all sectors and the individual stocks in those sectors.
Know The Foundation To Know An Economy
Applying the process of identifying the economic base of a market, serves as a good way to understand an economy and the society being built on that base. That can help us understand much about any nation as they …