The Settlor of a Trust – What Does That Mean? The settlor of a trust is the person who creates a trust to be managed by a trustee for the benefit of another party called the beneficiary. The settlor of a trust plans, creates, and funds the trust. Without the […]
What are Cyclical Stocks? Cyclical stocks tend to closely follow the overall economy, rising swiftly during economic expansions and falling sharply during recessions. Cyclical stocks have a business cycle that is influenced by macroeconomic or systematic fluctuations in the overall economy. These equities are noted for tracking an economy’s expansion, […]
How to Calculate Percentage Increase, Decrease, or Difference How to calculate percentage increase shows the amount of increase from an original number to a larger number as a percentage or parts per 100. Percentage change is a straightforward mathematical concept. It expresses the amount of change over time as a […]
What Is a Margin Call? A margin call is a demand from your broker to boost the equity in your trading account. It occurs when a margin account loses value and dips below the maintenance margin requirement level. A margin call is triggered when the value of an investor’s margin […]
What are Covered Calls in Options Trading? A covered call is a two-part options trading strategy in which stock is purchased or owned and calls are sold against the underlying security. Covered calls refer to a financial transaction in which the investor selling call options owns an equivalent amount of […]
What Is a SPAC and What is a SPAC Stock? A SPAC or special purpose acquisition company is a publicly-traded, cash-rich company. Its sole purpose is to find a suitable private company and take it public through a merger or acquisition. As a result, the private company can be publicly […]