Prop Trading – What is Proprietary Trading? Prop trading is the proprietary trading activity that occurs when a bank or firm trades stocks, derivatives, bonds, commodities, or other financial securities on its own behalf for its own economic gain. A financial firm or commercial bank that invests for direct market advantage […]
Investing
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FPO – What Is a Follow-on Public Offer? FPO, or Follow-on Public Offer, is how a firm already listed on the stock exchange issues new shares to current shareholders or new investors. It is a procedure where a firm that is publicly traded issues fresh shares to existing shareholders or […]
Amazon Stock Split – What Does it Mean to Investors? June 6th, 2022 marked the first trading day after Amazon’s announcement of a 20-for-1 stock split back in March of 2022. After trading above $2000 per share prior to the stock split, Amazon shares were revalued at $120 per share. […]
PEG Ratio – What Is the Price/Earnings-to-Growth? The PEG ratio is a metric that assists in determining the value of a stock by comparing market price, earnings, and future growth potential. The PEG ratio is the price/earnings to growth ratio. It is a stock’s price-to-earnings (P/E) ratio divided by the […]
What Is a Forward Contract? A forward contract is a tailored agreement between two parties to acquire or sell an item at a predetermined price on a future date. Forward contracts can be used for hedging or speculating, although due to their non-standardized character, they are best suited for hedging. […]
Series 63 – What Is A Series 63 License? The Series 63 license is the Uniform Securities Agent license, which enables agents to sell securities in most of the 50 states in the U.S. To receive a Series 63 license, the applicant must pass an exam and be familiar with […]