What are Closed Positions? Closed positions are transactions that have been liquidated by a trader and are no longer active. To close a position, you must trade in the opposite direction in which the position was opened. For example, if you take a long position in a company, you must […]
Investing
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What Is a Reverse Triangular Merger? A reverse triangular merger occurs when a parent company creates a shell company to acquire a target company. Once the target is acquired, it is absorbed into the parent company as a direct subsidiary. A reverse triangle merger is also known as a reverse […]
What Are Hedge Fund Side Pockets? Side pockets are accounts used in hedge funds to separate riskier or illiquid assets from more liquid investments. Typically, once a position enters a side pocket account, only the hedge fund’s present members are entitled to a piece of it. If and when the […]
IBM: The Company Known as Big Blue IBM (International Business Machines) is the company known as Big Blue. The nickname Big Blue has been used since the 1980s. The name may have come from the deep blue color of the company’s logo or the blue tint of its early computer […]
Selling Short Against the Box Short-selling securities owned by an investor without completing his long position is known as selling short against the box. Gains on equities are countered by losses, resulting in an investor’s neutral position. According to the IRS, selling short against the box is mostly done to […]
Stakeholder vs Shareholder – What Investors Need to Know What is a stakeholder vs shareholder? When it comes to investing in a corporation, there are both. While they have similar-sounding names, their investment in a company is quite different. A stakeholder is anyone who has an interest in the success […]