Negative PE Ratio – What it Means A negative PE ratio (Price-to-Earnings) means that the company has negative earnings, or is losing money. While losing money is never a good thing, it is not always a bad thing either. It depends on a number of factors and requires a closer […]
Trading Basics
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What Is DVP – Delivery Versus Payment? DVP – Delivery versus payment is a method of settlement for securities. It guarantees the transfer of securities only after payment is made. It requires that the buyer fulfills their payment obligations Payment must occur before or immediately at the time of the […]
What Is a Gravestone Doji? A Gravestone Doji is a bearish reversal candlestick pattern on a stock price trading chart. It is formed when the open, low, and closing prices are all near each other with a long upper shadow. The candlestick appears like an upside-down “T”. The long upper shadow suggests […]
What is Extrinsic Value in Options Trading? Extrinsic value in options trading is the difference between an option’s strike price and the underlying asset’s price. It is also referred to as the premium. It is the portion of the worth that has been assigned to an option by factors other […]
Call Premium – What is it? There are two common definitions investors should be familiar with regarding the term Call Premium. For bonds and debt securities – The call premium is the dollar amount over the par value of callable debt security that is given to holders when the security […]
What is the Plowback Ratio? The plowback ratio is the percentage of earnings a company reinvests rather than paying out higher dividends. for example, buying fixed assets. This ratio is an indicator of how much profit is retained in a business instead of being paid out to the investors. It […]