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?
Dividends are the part of a company's earnings directly distributed to its shareholders. Their distribution and quantity is decided by the board of directors and approved by the assembly of the shareholders and they can be issued as cash payments (the most common case), additional shares or other types of assets. Dividends can be structured as to be distributed as a periodical ongoing cash flow … Continue reading What is a dividend?
The intrinsic value of a share is the actual and correct value of a stock, based on the fundamentals of its issuing company. Besides the fundamentals of the firm, which are the numerical values written in its financial statements, the intrinsic value includes in its calculation also other aspects of the business, both tangible (for example, … Continue reading What is the intrinsic value of a share?