There is no foolproof method to selecting stocks. A stock's alpha value does not guarantee its future performance. Similarly, a stock's past performance may not reflect future risk or volatility as indicated by beta. Quite simply, a stock performing well at the time of the calculation may pe...
What does beta mean in stocks? Beta is a way of measuring how volatile an investment is, compared with a market index such as the S&P 500. It’s used to evaluate the expected risks and returns of a portfolio, or to see whether a specific investment would be a good fit for a portfoli...
What Does Shorting a Stock Mean? What Are SPACs in Finance? What Is a Stock Market Bubble? What Are Stock Market Corrections? What Does Stock Market Volatility Mean? What Are Stock Splits? What Is a Stock Ticker? Stock Warrants: What They Are and How They Work ...
It’s also worth noting that the vesting of stocks can impact a company’s stock price. When a large number of shares vest and become available for sale, the increased supply can put downward pressure on the stock price. Conversely, if vesting results in a restricted supply of shares, it ...
Financial Advice on a Budget Key questions can help you find the right financial advisor that fits your goals and budget. Julie PinkertonNov. 25, 2024 Recession 2025: How to Prepare Recession chances remain elevated heading into 2025. Wayne DugganNov. 25, 2024...
When it comes to maximizing returns, diversification often doesn't pay. Jeff ReevesNov. 19, 2024 10 Best Growth Stocks to Buy for 2025 As global growth slows, high-quality growth stocks may start disappearing. Wayne DugganNov. 19, 2024...
Hear our experts take on stocks, the market, and how to invest. Our Guides What Is a Target Market? What Is a Tax Identification Number (TIN)? What Is Tenancy in Common? What Is a Title Loan? What Is Trailing 12 Months (TTM)? What Is a Trustee? What Does Theta Mean in Options ...
What does it mean to write a put option? When an investor or institution writes a put option, they are essentially offering to buy a certain number of shares in a particular company by a certain date for a certain price. Although the option may change hands multiple times, it’s the ...
Compete Risk Free with $100,000 in Virtual Cash Put your trading skills to the test with ourFREE Stock Simulator.Compete with thousands of Investopedia traders and trade your way to the top! Submit trades in a virtual environment before you start risking your own money.Practice trading strategie...
Thereafter, the stock’s losses mean profits for the trader. But these profits are capped because the stock’s price cannot fall below zero. The losses are also capped because the trader can let the options expire worthless if prices move in the opposite direction. Therefore, the maximum los...