What is insider trading?

Insider trading is the buying or selling of a security by an insider, that is, someone who has access to information about the security not yet available to the broad public; this practice can be illegal or legal, depending on when the insider makes the trade. For example, legal insider trading can happen when the … Continue reading What is insider trading?


What is a mutual fund?

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?

What is a stock exchange?

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?

Black Monday: the stock market crash of 1987

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

Tesla, Inc.: another bubble?

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?

What is a dividend?

  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?

What is the intrinsic value of a share?

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?