A mutual fund is a professionally-managed investment vehicle, made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, derivatives and other assets. Mutual funds are usually operated by professional money managers, who allocate the fund's investments and attempt to produce profits for the fund's investors. Mutual funds are divided into "units", which are similar … Continue reading What is a mutual fund?
A stock exchange or stock market is the physical or virtual place where the issuing and trading of shares takes place. The stock market is one of the most important components of an economy, as it provides companies with capital in exchange for giving investors partial ownership of the firm. Stock markets can be split into two … Continue reading What is a stock exchange?
The Securities and Exchange Commission, better known as SEC, is a US independent, federal government agency responsible for protecting investors and maintaining fair and orderly functioning of securities markets. Created in 1934 with the Securities Exchange Act, after the Great Depression started in 1929, as the first federal regulator of financial markets in the United States, … Continue reading What is the Securities and Exchange Commission?
A short position, usually simply called short, is an investment or speculative strategy where an investor sells shares of a borrowed stock in the market. The investor expects that the price of the stock to decrease over time, so that in the future he will be able to purchase the shares in the open market … Continue reading What is a short position?
After the Great Depression, started with the famous stock market crash of 1929, American people became so afraid of losing again all their saving that they left the markets, being replaced by institutional investors, such as insurance companies, pension funds, hedge funds, mutual funds and commercial banks. Moreover, the Securities and Exchange Commission (SEC), created … Continue reading Black Monday: the stock market crash of 1987
It was May 1st , 2012 when David Einhorn, a well-known hedge fund manager, founder and president of Greenlight Capital, asked accurate questions about Herbalife International's business and sales models during the first quarter's earnings call, setting off suspicions that he had a short position on the stock. In fact, in January 2013 Einhord revealed that … Continue reading Is Herbalife a fraud? Bill Ackman says it is a huge one
Tesla, Inc. is a worldwide famous automaker company, specialized in electric cars, founded by Elon Musk back in 2003. In the last months Tesla's stock price and - as a consequence - market capitalization have increased continuously, with the latter even surpassing that of Ford Motor Company and chasing that of General Motors Company, the two … Continue reading Tesla, Inc.: another bubble?